It is the beginning of 2024 and you can start your investment with mutual funds. Mutual funds allow to explore equity market(Stock market) with help of experts. You can start mutual fund by investing monthly 100 rupees. Here we would be highlighting the top mutual funds to invest right now.
Question to ask when making an investment – Do I understand how this investment instrument works?
Here we have identified the top mutual funds based on risk factor, expense ratio and fund manager expertise. Here we listed 2 large cap, 2 mid cap, 2 small cap and 3 flexi cap funds to start your investment.
You should start with large cap and your portfolio should have one large cap. In case you are planning to invest mutual fund SIP with monthly upto 1000 rupees, select anyone of the large cap fund. In case you want to invest 1000 to 2000 rupees, you can invest in large cap and mid cap fund. Above 5000 rupees, you can invest 50% in large cap, 20% in mid cap , 20% in small cap and 10% in ICICI technology fund.
To invest 5000 rupees monthly, you can split 2000 rupees in large cap funds, 1000 rupees in mid cap funds, 1000 rupees in small cap funds and 1000 rupees in emerging fund/technology funds.
Top Large cap funds:
- SBI Long Term Equity Growth Direct Plan (Tax ELSS Fund)
- Nippon India Large Cap Fund Direct Growth
Both the funds invest in large cap stocks such as ICICI, HDFC, SBI, Reliance Industries, ITC, Axis bank, Infosys and many more in large cap stocks. Both of these funds are 10 years old direct mutual funds and expense ratio is less than 1% which is lowest in these category.
Top Midcap Funds :
- Motilal Oswal Large & Midcap Growth Direct Plan
- HDFC Mid Cap Opportunities Growth Direct Plan ( Min monthly SIP of 100 rupees)
Both of these funds invest in mid cap stocks like Indian Hotels Co Ltd, The Federal Bank Ltd, Apollo Tyres Ltd, Indian Bank, Prestige Estates Projects Ltd and many more. The expense ratio of both funds are less than 1%(0.53% and 0.8%).
Top SmallCap funds:
- Axis Small Cap Fund Direct Growth (Starts with monthly SIP 100 rupees)
- HSBC Small Cap Growth Direct Plan
Both the funds expense ratio is less than 0.8% and you can start with monthly 100 rupees in Axix small cap fund. Small cap funds invests in Birlasoft, JK Lakshmi Cement, Sonata Software and many more small cap funds.
Top 3 funds invest in foreign equities and Technlogy stocks :
- Parag Parikh Flexi Cap Fund Direct Growth (invest in US stocks including Microsoft)
- Quant Flexi Cap Growth Direct Plan( invests in large, mid and small cap funds)
- ICICI Prudential Technology Direct Plan Growth( Invests in technology companies)
These funds invest in indian stocks as well as foreign stocks like Micrsoft, HDFC, ITC, HCL, Maruthi Suzuki and many more to get better returns. It provided 30% return in last one year. ICICI Prudential Technology Direct Plan Growth fund invests in technology and technology dependent companies such as Infosys, HCL, TCS, Persistent Systems, Tech Mahindra, LTIMindtree and many more technology companies.