There are a lot of ways today to generate wealth in 2018, but to invest in a diversified environment and get high growth returns, investing in mutual funds is considered to be the best option.

This article highlights top 5 best-rated funds to invest in for long-term wealth generation:

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So, in this category, we first of all need to understand what all mutual funds are we considering, is it large-cap or mid-cap or a mix of both. Large-cap funds essentially mean the mutual fund which invests in large capitalization companies, which make huge profits every year and are almost consistent in their performance. So, the risk is comparatively less while investing in these funds.

Small-cap funds are the ones which include companies with low market capitalization, probably because they are new in the market and want to increase their funding hence sell their shares, so the risk is comparatively high in this case. But some of these possess high potential, to make huge profits in the future and hence investing in them for long term can reap higher benefits.

Now combining these two forms multi cap funds which invest in both large cap and small funds by analyzing the companies and sectors thoroughly.

So after understanding the entire idea why some of the funds are involved in this portfolio let’s have a look at which all funds are considered best rated by Groww:

1) Mirae Asset India Opportunities Fund:

Type of Fund: It is a large-cap fund

Rating: rated 5 star by Groww. It has been launched around 10 years ago.

Holdings: Its top 10 holdings include:

Company name Sector
HDFC Bank Ltd. Financial Services
ICICI Bank Ltd. Financial Services
State Bank of India Financial Services
Infosys Ltd. IT
Larsen & Toubro Ltd. Construction
Maruti Suzuki India Ltd. Automobile
Reliance Industries Ltd. Energy
Tata Steel Ltd. Metals
Grasim Industries Ltd. Cement and Cement Production

Returns: Its returns for 1 year is 33.13% ; 3 years is 13.58%; and 5 years is 20.26% which is better than competitor’s benchmarks and is shown in the following graph:Mirae Asset India Opportunities Fund

2) Motilal Oswal MOSt focused Multicap 35 Fund:

Type of Fund: It is a multi cap fund with 75% investments in large cap and remaining 25% in mid cap industries

Rating: rated 5 star by Groww. It has been launched around 3 years ago.

Holdings: Its top 10 holdings include:

Company name Sector
Housing Development Finance Corporation Financial Services
Maruti Suzuki India Ltd. Automobile
HDFC Bank Pvt. Ltd. Financial Services
Bharat Petroleum Corporation Ltd. Energy
Hindustan Petroleum Corporation Ltd. Energy
IndusInd Bank Ltd. Financial Services
Eicher Motors Ltd. Automobile
Bajaj Finance Ltd. Financial Services
PNB Housing Finance Financial Services
Britannia Consumer Goods

Returns: 34.07% for one year; 3 years is 19%

Motilal Oswal MOSt Focused Multicap 35 Fund-Regular-Growth

3) Mirae Asset Emerging Bluechip fund:

Type of Fund: It is a multi cap fund with 34.4% investments in large cap, 60.7% in mid cap industries and remaining 4.9% in small cap industries

Rating: rated 5 star by Groww. It has been launched around 7 years ago.

Holdings: Its top 10 holdings include:

Company name Sector
Tata Global Beverages Ltd Consumer Goods
Federal Bank Ltd. Financial Services
Kotak Mahindra Bank Ltd. Financial Services
ICICI Bank Ltd. Financial Services
Raymond Ltd. Textiles
Tata Steel Ltd. Metals
IndusInd Bank Ltd. Financial Services
Voltas Ltd. Construction
Grasim Industries Ltd. Cement and Cement Production
Tata Chemicals Ltd. Chemicals

Returns: For 1 year 39.96% ;for  3 years is 22.03% and for 5 years 30.11%Mirae Asset Emerging Bluechip Fund

4) Kotak emerging Equity scheme:

Type of Fund: It is a multi cap fund with 18.7% investments in large cap, 70.4% in mid cap industries and remaining 10.9% in small cap industries

Rating: rated 5 star by Groww. It has been launched around 10 years ago.

Holdings: Its top 10 holdings include:

Company name Sector
CBLO(CCIL) Current Assets
IndusInd Bank Ltd. Financial Services
Schaeffler India Ltd. Industrial Manufacturing
RBL Bank Ltd. Financial Services
Atul  Ltd. Chemicals
Federal Bank Ltd. Financial Services
The Ramco Cements Ltd. Cement and Cement Production
Bata India Ltd. Consumer Goods
Emami Ltd. Consumer Goods
Solar Industries India Ltd. Chemicals

Returns: For 1 year 35.17% ;for  3 years is 18.38% and for 5 years 24.52%Kotak Emerging Equity Scheme

5) Reliance Small Cap Fund:

Type of Fund: It is a multi cap fund with 5.5% investments in large cap, 42.3% in mid cap industries and remaining 52.2% in small cap industries. Because it invests majorly in small cap and mid cap funds, investing in it is of high risk.

Rating: rated 5 star by Groww. It has been launched around 7 years ago.

Holdings: Its top 10 holdings include:

Company name Sector
Navin Fluorine International Ltd. Chemicals
Vindhya Telelinks Ltd. Telecom
V I P Industries Ltd. Consumer Goods
Deepak Nitrite Ltd. Chemicals
United Breweries Ltd. Consumer Goods
Cyient Ltd. IT
RBL Bank Ltd. Financial Services
Tata Motors Finance Ltd. (90D) Financial Services
L G Balakrishnan & Bros Ltd. Automobiles
Seya Industries Ltd. Chemicals

Returns: For 1 year 52.61% ;for  3 years is 23.68% and for 5 years 32.45%Reliance Small Cap Fund

As seen from the above mutual funds, all are best rated by Groww and are performing well above the competitor’s benchmark. This mix created by Groww is suggested to have good long term returns.

Investing in mutual funds online is as easy as shopping online. Just log on to Groww.

Happy investing!