Today, a mutual fund is one of the most common investing choices. Investors can choose from several mutual funds available in India. However, which mutual fund will work best is not simple. Therefore, before investing in a mutual fund, you must spend time researching and considering factors such as your risk tolerance and the duration of your objectives. While researching, you will find mutual funds fall into different categories, such as large-cap equity funds, small-cap equity funds, etc. Some equity funds in each category are quite popular among investors. In this blog, we'll know the categories of mutual funds and the top 10 trending mutual funds with percentage return in the first and third year in each category so that you make wise investing decisions.
Large Cap Equity Funds
Large-cap equity funds primarily make investments in market-capitalized corporations, which are usually the best-performing stocks. These funds hold stocks of reputable, financially sound companies with the goal of stability and long-term growth. Investors looking for reliable returns with a moderate level of risk exposure choose these mutual funds. Here, is a list of the top 10 large-cap equity fund.
| # | Funds Name | 1 Year Return | 3 Year Return |
|---|---|---|---|
| 1 | Nippon India Large Cap Fund | 34.57% | 25.34% |
| 2 | Edelweiss Large Cap Fund | 28.39% | 18.69% |
| 3 | HDFC Top 100 Fund | 28.04% | 21.24% |
| 4 | Invesco India Large cap Fund | 27.5% | 17.22% |
| 5 | SBI Bluechip Fund | 26.93% | 18.82% |
| 6 | DSP Top 100 Equity Fund | 26.3% | 15.85% |
| 7 | ICICI Prudential Bluechip Fund | 26.17% | 19.39% |
| 8 | Bandhan Large Cap Fund | 25.58% | 15.95% |
| 9 | Aditya Birla Sun Life Frontline Equity Fund | 23.73% | 17.24% |
| 10 | Tata Large Cap Fund | 24.61% | 17.9% |
Mid-Cap Equity Funds
Mid-cap equity funds mainly make investments in businesses between small- and large-cap firms in terms of market size. By investing in stocks of businesses with the potential to grow and beat the market, these funds seek to achieve growth. Their ability to strike a balance between growth potential and risk draws in investors looking for moderate to high returns. Here, is a list of the top 10 mid-cap equity fund:
| # | Funds Name | 1 Year Return | 3 Year Return |
|---|---|---|---|
| 1 | HDFC Mid-Cap Opportunities Fund | 44.13% | 29.95% |
| 2 | Mahindra Manulife Mid Cap Fund | 37.26% | 25.5% |
| 3 | Nippon India Growth Fund | 36.16% | 26.39% |
| 4 | Tata Midcap Growth Fund | 33.77% | 22.59% |
| 5 | Invesco India Mid Cap Fund | 32.94% | 22.47% |
| 6 | SBI Magnum Midcap Fund | 32.38% | 26.94% |
| 7 | Motilal Oswal Midcap Fund | 31.63% | 31.38% |
| 8 | Quant Mid Cap Fund | 30.93% | 30.26% |
| 9 | Sundaram Mid Cap Fund | 30.58% | 22.51% |
| 10 | Aditya Birla Sun Life Mid Cap Fund | 30.13% | 21.04% |
Small-Cap Equity Funds
Investing largely in the equities of smaller companies with market capitalizations ranging from a few hundred million to a few billion dollars is what a small-cap equity fund does. Due to the volatility and few resources of small-cap stocks, these funds have the potential to yield large gains, but they also carry a higher risk. With small-cap equity funds, investors can diversify and expand [67.7/their holdings in their portfolios. Here, is a list of the top 10 small-cap equity fund
| # | Funds Name | 1 Year Return | 3 Year Return |
|---|---|---|---|
| 1 | HDFC Small Cap Fund | 51.5% | 34.82% |
| 2 | Nippon India Small Cap Fund | 7.28% | 36.5% |
| 3 | Quant Small Cap Fund | 45.69% | 37.6% |
| 4 | DSP Small Cap Fund | 45.38% | 29.74% |
| 5 | Franklin India Smaller Companies Fund | 44.87% | 31.53% |
| 6 | HSBC Small Cap Fund | 40.88% | 33.51% |
| 7 | Aditya Birla Sun Life Small Cap Fund | 45.38% | 29.74% |
| 8 | ICICI Prudential Smallcap Fund | 35.8% | 30.46% |
| 9 | Sundaram Small Cap Fund | 39.34% | 28.87% |
| 10 | Union Small Cap Fund | 36.46% | 27.16% |
Multi Cap Equity Fund
A particular kind of mutual fund known as a multi-cap equity fund makes investments in equities of large, mid, and small-cap companies, among other market capitalizations. By using a diversified strategy, the fund manager can take advantage of opportunities throughout the market, which could increase returns while lowering risk. Flexible and diversified portfolios are encouraged by the exposure to a broad range of firms that multi-cap equity funds provide investors with. Here, is a list of the top 10 multi-cap equity funds
| # | Funds Name | 1 Year Return | 3 Year Return |
|---|---|---|---|
| 1 | Nippon India Multi Cap Fund | 39.4% | 31.37% |
| 2 | Quant Active Fund | 23.54% | 24.39% |
| 3 | Baroda BNP Paribas Multi Cap Fund | 22.07% | 28.12% |
| 4 | Mahindra Manulife Multi Cap Fund | 33.79% | 24.22% |
| 5 | ICICI Prudential Multicap Fund | 30.95% | 22.55% |
| 6 | ITI Multi Cap Fund | 26.73% | 21.87% |
| 7 | Edelweiss Maiden Opportunities Fund - Series I - Direct Plan-Growth | 22.17% | 26.12% |
| 8 | Edelweiss Recently Listed IPO Fund - Direct Plan-Growth | 22.17% | 26.12% |
| 9 | Invesco India Multicap Fund | 29.25% | 19.75% |
| 10 | Sundaram Multi Cap Fund | 24.53% | 18.76% |
*Mutual Fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Conclusion
Thus, here you have a comprehensive list of the top 10 mutual funds from each category. However, you shouldn't expect to find the best answer from any search that begins with the terms "best" or "top." The scheme you select must align with your investing purpose, time horizon, and risk tolerance. If you are unfamiliar with investing in mutual funds or do not fully comprehend them, reach out to Investsphere Wealth Pvt Ltd. We are a reliable financial product distributor offering effective and ethical financial products. We have a team of financial experts who are dedicated to understanding our client's financial needs and goals to establish enduring, trusted partnerships.