Best mutual funds to invest in 2024 With RR Finance
Smart investing is crucial for financial stability and growth in today's ever-changing economic landscape. Mutual funds are a popular choice for both beginners and seasoned investors, offering a wide range of investment opportunities. Let's explore the Best mutual funds to invest in right now!
Understanding Mutual Funds
Mutual funds are investment vehicles where individuals pool their money to invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional portfolio managers, who make decisions on behalf of the investors to aim for capital appreciation, income generation, or both, depending on the fund's objectives. Investors buy shares of the mutual fund, representing their proportional ownership of the underlying assets in the portfolio.
Best Mutual Funds to Invest in 2024
1. Equity Mutual Funds.
Some of the Best Mutual Funds are available in the Equity category. An equity mutual fund is the best option for investors looking for long-term wealth growth. Some of the best-performing mutual funds for equity in 2024.
| Scheme |
Past Performance (%) |
|
1Y |
3Y |
5Y |
| HDFC Mid-Cap Opportunities Fund |
51.92 |
28.08 |
24.78 |
| Axis Small Cap Fund |
41.55 |
24.55 |
19.42 |
| ICICI Prudential Smallcap Fund |
39.04 |
25.19 |
25.17 |
| Aditya Birla Sun Life Frontline Equity Fund |
35.01 |
23.33 |
25.74 |
| HDFC Flexi Cap Fund |
28.55 |
15.97 |
15.18 |
2. Multi-Asset Allocation Funds:
Multi-asset allocation funds offer a combination of debt, equity, and commodities. Investors seeking exposure to multiple asset classes can consider these Funds. Best Mutual Funds in this category are
| Scheme |
Past Performance (%) |
|
1Y |
3Y |
5Y |
| HDFC Multi-Asset Fund |
36.65 |
17.44 |
14.57 |
| ICICI Prudential Multi-Asset Fund |
31.57 |
22.24 |
19.45 |
| UTI Multi Asset Allocation Fund |
21.52 |
13.13 |
14.08 |
3. PSU Thematic Funds:
PSU Thematic Funds are a type of fund that invests in only PSU stocks. As we all know PSUs have been outperforming over the years and should continue to do so. Investors seeking exposure to the PSU sector can consider these Funds. Best Mutual Funds in this category are
| Scheme |
Past Performance (%) |
|
1Y |
3Y |
5Y |
| SBI PSU Fund |
97.26 |
39.59 |
26.04 |
| Invesco India PSU Equity Fund |
93.46 |
41.2 |
NA |
| Aditya Birla Sun Life PSU Equity Fund |
91.72 |
38.63 |
29.82 |
4. Flexi-Cap Funds:
Flexi-cap funds offer investors a unique opportunity to invest in different market caps with one fund. Investors seeking exposure to different market caps can consider these Funds. Best Mutual Funds in this category are
| Scheme |
Past Performance (%) |
|
1Y |
3Y |
5Y |
| HDFC Flexi Cap Fund |
41.55 |
24.55 |
19.42 |
| Parag Parikh Flexi Cap Fund |
32.31 |
19.89 |
23.45 |
| SBI Flexi Cap Fund |
24.24 |
13.96 |
14.52 |
Returns are as of 01/06/2024. Past performance may or may not be sustained in the future.
Factors to Consider When Choosing Mutual Funds :
Even if the mentioned funds are among the top performers in their respective categories, it's important to take a few things into account before making any investments:
- (I) Performance History : Assess the fund's track record during several market cycles to determine its reliability and return-generating capacity.
- (II) Expense Ratio : Take into account the fund's expense ratio as it has an immediate effect on your total returns. Lower expense ratios are better since they lessen the burden on your investment.
- (III) Risk Profile : Evaluate your level of risk tolerance and select funds based on your risk appetite and investing goals.
- (IV) Fund Manager Experience : To guarantee that your money will be managed skillfully, find out about the fund manager's experience handling comparable funds and their track record.
- (V) Diversification : Choose funds that provide a well-diversified portfolio to reduce concentration risk and improve stability.
Final Thoughts :
In conclusion, careful study and evaluation of several aspects are necessary when choosing the best mutual funds to invest in 2024. Regardless of your preference while choosing a mutual fund, RR Finance advises making a well-rounded investing plan, one that is based on your risk tolerance and financial objectives.
If necessary, seek the advice of a financial expert to create a customized investing strategy that fits your goals and desires. Happy investing!
Disclaimer - Mutual Fund Investments are subject to market risks. Read all scheme-related documents carefully before investing