Often, the selected schemes are based on recent performance. Frequently, a specific category dominates simply because it happens to be the market favourite at that particular time.
The ranking of top-performing mutual funds is often based on their short-term or long-term returns. However, past performance alone should not be the sole basis for making investment decisions.
Here are the top 10 mutual funds across five categories of equity mutual funds, according to ET.
Investors should make their choices based on their financial goals, investment horizon, and risk appetite.
This selection is based on average rolling returns, three-year consistency, downside risk, superior performance, and asset size.
Hybrid mutual funds
These schemes invest 65-80 per cent in equity and 20-35 per cent in debt, making them suitable for investors with a relatively lower risk appetite.
Options: SBI Equity Hybrid Fund and Mirae Asset Aggressive Hybrid Fund.
Large-cap mutual funds
These funds, which invest in the top 100 companies by market capitalisation, are suitable for those seeking consistent growth with low volatility.
Options: Canara Robeco Large Cap Fund and Mirae Asset Large Cap Fund.
Flexi-cap funds
These schemes invest across various market caps and sectors, making them suitable for moderate investors.
Selected Schemes: Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund.
Mid-cap mutual funds
These funds invest in medium-sized companies; while they may experience volatility, they offer higher growth potential.
Options: Axis Midcap Fund and Kotak Midcap Fund.
Small-cap mutual funds
These funds are designed for investors with a higher risk appetite and a long-term investment horizon-and can be quite volatile.
Options: Axis Small Cap Fund and SBI Small Cap Fund.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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