You can invest in mutual funds to achieve different financial goals as per your requirements.
We have shortlisted 10 top-performing mutual funds in India to invest in 2022. You will be able to make an informed decision after going through this article.
You would also learn about important parameters while investing in mutual funds at the end of this article.
Best Long Duration Mutual Funds in India 2022
If you have long term goals such as wealth creation, retirement goals or saving to buy your own home, then go with long-duration funds.
These are purely equity oriented funds that have very high risk factor and you also get high returns.
In simple terms, if your investment tenure is more than 7 years, then go with long duration mutual funds.
#1. Mirae Asset Emerging Bluechip Fund
#1. Mirae Asset Emerging Bluechip Fund Details
| Fund House: | Mirae Asset Emerging Bluechip Fund |
| Fund Launched: | 01-Jan-2013 |
| Return Since Launch: | 24.09% |
| Benchmark: | Nifty Large Midcap 250 TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 15,785 Cr |
| Turnover: | 97.00% |
| Expense: | 0.70% |
#2. Fund Performance
#3. Mirae Asset Emerging Bluechip Fund Returns
#4. Sectorwise comparison
#5. Top 10 Portfolio Holdings
| Stocks | % of Holdings |
| HDFC Bank Ltd. | 7.01% |
| ICICI Bank Ltd. | 6.56% |
| Infosys Ltd. | 5.02% |
| Axis Bank Ltd. | 4.72% |
| State Bank Of India | 3.57% |
| Bharti Airtel Ltd. | 2.95% |
| Tata Consultancy Services Ltd. | 2.92% |
| Voltas Limited | 2.71% |
| Maruti Suzuki India Ltd. | 2.36% |
| Reliance Industries Ltd. | 2.34% |
#2. Axis Midcap Fund
#1. Axis Midcap Fund Details
| Fund House: | Axis Mutual Fund |
| Launch Date: | 18-Feb-2011 |
| Return Since Launch: | 18.09% |
| Benchmark: | S&P BSE Mid Cap TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 9,757 Cr |
| Turnover: | 35.00% |
| Expense: | 1.86% |
#2. Fund Performance
#3. Axis Midcap Fund Returns
#4. Sectorwise comparison
#5. Top 10 Portfolio Holdings
| Stock Invested in | % of Total Holdings |
| Cholamandalam Investment & Finance Co. Ltd. | 5.74% |
| Voltas Limited | 4.24% |
| Astral Poly Technik Ltd. | 3.62% |
| Pi Industries Ltd. | 3.47% |
| Avenue Supermarts Ltd. | 3.25% |
| Bajaj Finance Ltd. | 3.18% |
| HDFC Bank Ltd. | 3.18% |
| Supreme Industries Ltd. | 2.99% |
| Endurance Technologies Ltd. | 2.77% |
| J.K. Cement Ltd. | 2.68% |
Also read – How to select mutual funds
#3. Canara Robeco Emerging Equities Fund
#1. Canara Robeco Emerging Equities Fund Details
| Fund House: | Canara Robeco Mutual Fund |
| Launch Date: | 02-Jan-2013 |
| Return Since Launch: | 21.60% |
| Benchmark: | NIFTY Large Midcap 250 TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 7,922 Cr |
| Turnover: | 64.00% |
| Expense: | 0.66% |
#2. Fund Performance
#3. Canara Robeco Emerging Equities Fund Returns
#4. Sectorwise Comparison
#5. Top 10 Portfolio Holdings
| Stock Invested in | % of Total Holdings |
| HDFC Bank Ltd. | 5.70% |
| ICICI Bank Ltd. | 4.98% |
| Bajaj Finance Ltd. | 4.11% |
| Infosys Ltd. | 3.85% |
| Reliance Industries Ltd. | 3.77% |
| Axis Bank Ltd. | 3.53% |
| Minda Industries Ltd. | 2.78% |
| Voltas Limited | 2.34% |
| Mahindra & Mahindra Financial Services Ltd. | 2.19% |
| Gujarat Gas Ltd. | 2.17% |
Also read – Best Index Funds in India
Best Short Term Mutual Funds in India
If you have short term investment goals like next vacation, saving for new bike or any marriage in the family, where you may compromise with returns but you don’t want to lose your invested money, then go with short term funds also called debt funds.
Since debt funds invest around 90% of funds in government securities, corporate bonds, and other safer instruments which are less volatile as compared to equities.
If your investment period is 1 to 5 years, then you should invest in short term debt funds.
#4. Aditya Birla Sun Life Short Term Fund
#1. Aditya Birla Sun Life Short Term Fund Details
| Fund House: | Aditya Birla Sun Life Mutual Fund |
| Launch Date: | 01-Jan-2013 |
| Return Since Launch: | 9.48% |
| Benchmark: | CRISIL Short-Term Bond TRI |
| Riskometer: | Moderate |
| Return Grade: | Above Average |
| Assets: | ₹ 7,650 Cr |
| Expense: | 0.41% |
#2. Fund Performance
#3. Aditya Birla Sun Life Short Term Fund Returns
#4. Credit Rating Wise Comparison
#5. Types of Holdings
| Security Type | % Weight |
| GOI | 14.15% |
| CD | 2.90% |
| T-Bills | 0.00% |
| CP | 2.45% |
| NCD & Bonds | 70.05% |
| PTC | 0.00% |
#5. ICICI Prudential Short Term Fund
#1. ICICI Prudential Short Term Fund Details
| Fund House: | ICICI Prudential Mutual Fund |
| Launch Date: | 01-Jan-2013 |
| Return Since Launch: | 9.24% |
| Benchmark: | CRISIL Short-Term Bond TRI |
| Riskometer: | Moderate |
| Return Grade: | High |
| Assets: | ₹ 23,715 Cr |
| Expense: | 0.40% |
#2. Fund Performance
#3. ICICI Prudential Short Term Fund Returns
#4. Credit Rating Wise Comparison
#5. Types of Holdings
| Security Type | % Weight |
| GOI | 22.34% |
| CD | 0.61% |
| T-Bills | 4.15% |
| CP | 8.54% |
| NCD & Bonds | 53.05% |
| PTC | 1.25% |
Top Performing Hybrid Funds in India
If you need balanced mutual funds that is less volatile as compared pure equity based funds and also gives you better returns than debt funds, then you should invest in hybrid funds.
You can invest for 1 year to 5 years similar to debt funds which will give you return around 10% to 15% per year.
#6. BNP Paribas Substantial Equity Hybrid Fund
#1. BNP Paribas Substantial Equity Hybrid Fund Details
| Fund House: | BNP Paribas Mutual Fund |
| Launch Date: | 07-Apr-2017 |
| Return Since Launch: | 13.64% |
| Benchmark: | CRISIL Hybrid 35+65 Aggressive TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 523 Cr |
| Expense: | 0.61% |
#2. Fund Performance
#3. BNP Paribas Substantial Equity Hybrid Fund Returns
#4. Credit Rating Wise Comparison
#5. Types of Holdings
| Stock Invested in | % of Total Holdings |
| HDFC Bank Ltd. | 6.45% |
| ICICI Bank Ltd. | 5.94% |
| Infosys Ltd. | 4.79% |
| Axis Bank Ltd. | 4.23% |
| Ultratech Cement Ltd. | 2.92% |
| Reliance Industries Ltd. – Partly Paid | 2.89% |
| State Bank Of India | 2.80% |
| Max Financial Services Ltd. | 2.48% |
| Avanti Feeds Ltd. | 2.01% |
| Federal Bank Ltd. | 1.98% |
#7. Canara Robeco Equity Hybrid Fund
#1. Canara Robeco Equity Hybrid Fund Details
| Fund House: | Canara Robeco Mutual Fund |
| Launch Date: | 01-Jan-2013 |
| Return Since Launch: | 14.79% |
| Benchmark: | CRISIL Hybrid 35+65 Aggressive TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 4,565 Cr |
| Expense: | 0.77% |
#2. Fund Performance
#3. Canara Robeco Equity Hybrid Fund Returns
#4. Credit Rating Wise Comparison
#5. Top Holdings
| Stock Invested in | % of Total Holdings |
| HDFC Bank Ltd. | 6.37% |
| Infosys Ltd. | 5.62% |
| ICICI Bank Ltd. | 5.50% |
| Reliance Industries Ltd. | 3.02% |
| State Bank Of India | 2.99% |
| Bajaj Finance Ltd. | 2.76% |
| Axis Bank Ltd. | 2.68% |
| Larsen & Toubro Ltd. | 2.36% |
| Housing Development Finance Corporation Ltd. | 2.27% |
| Tata Consultancy Services Ltd. | 2.25% |
Best Tax Saver Mutual Funds in India
If you want to save taxes along with wealth creation, then Tax saver funds are the best.
Also called ELSS Funds, where you can save taxes up to Rs. 1.50 lakh under section 80 C of Income tax act of India.
You can also earn an interest of around 15% to 20% per year. The ELSS funds come with a lock-in period of 3 years, so you can’t withdraw your invested money before that.
#8. Axis Long Term Equity Fund
#1. Axis Long Term Equity Fund Details
| Fund House: | Axis Mutual Fund |
| Launch Date: | 01-Jan-2013 |
| Return Since Launch: | 19.65% |
| Benchmark: | S&P BSE 200 TRI |
| Riskometer: | Very High |
| Return Grade: | Above Average |
| Assets: | ₹ 27,216 Cr |
| Expense: | 0.72% |
#2. Fund Performance
#3. Axis Long Term Equity Fund Returns
#4. Sector Wise Comparison
#5. Top Holdings
| Stock Invested in | % of Total Holdings |
| Bajaj Finance Ltd. | 9.27% |
| Avenue Supermarts Ltd. | 7.57% |
| Tata Consultancy Services Ltd. | 6.87% |
| Info Edge (India) Ltd. | 6.87% |
| HDFC Bank Ltd. | 6.52% |
| Kotak Mahindra Bank Ltd. | 6.45% |
| Housing Development Finance Corporation Ltd. | 5.64% |
| Nestle India Ltd. | 5.10% |
| Maruti Suzuki India Ltd. | 4.58% |
| Pidilite Industries Ltd. | 4.06% |
#9. Mirae Asset Tax Saver Fund
#1. Mirae Asset Tax Saver Fund Details
| Fund House: | Mirae Asset Mutual Fund |
| Launch Date: | 28-Dec-2015 |
| Return Since Launch: | 20.89% |
| Benchmark: | NIFTY 200 TRI |
| Riskometer: | Very High |
| Return Grade: | High |
| Assets: | ₹ 6,351 Cr |
| Expense: | 0.29% |
#2. Fund Performance
#3. Mirae Asset Tax Saver Fund Returns
#4. Sector Wise Comparison
#5. Top Holdings
| Stock Invested in | % of Total Holdings |
| HDFC Bank Ltd. | 9.34% |
| Infosys Ltd. | 7.05% |
| ICICI Bank Ltd. | 7.01% |
| Axis Bank Ltd. | 4.66% |
| Tata Consultancy Services Ltd. | 4.31% |
| State Bank Of India | 3.10% |
| Reliance Industries Ltd. | 2.99% |
| Bharti Airtel Ltd. | 2.90% |
| Maruti Suzuki India Ltd. | 2.54% |
| J.K. Cement Ltd. | 2.47% |
#10. DSP Tax Saver Fund
#1. DSP Tax Saver Fund Details
| Fund House: | DSP Mutual Fund |
| Launch Date: | 01-Jan-2013 |
| Return Since Launch: | 16.71% |
| Benchmark: | NIFTY 500 TRI |
| Riskometer: | Very High |
| Return Grade: | Above Average |
| Assets: | ₹ 7,883 Cr |
| Expense: | 0.80% |
#2. Fund Performance
#3. DSP Tax Saver Fund Returns
#4. Sector Wise Comparison
#5. Top Holdings
| Stock Invested in | % of Total Holdings |
| Infosys Ltd. | 8.08% |
| ICICI Bank Ltd. | 7.60% |
| HDFC Bank Ltd. | 7.25% |
| Bharti Airtel Ltd. | 4.53% |
| Axis Bank Ltd. | 4.00% |
| State Bank Of India | 3.60% |
| Hindustan Unilever Ltd. | 2.87% |
| Tata Steel Ltd. | 2.79% |
| Ultratech Cement Ltd. | 2.34% |
| Dr. Reddys Laboratories Ltd. | 2.23% |
Things to Consider While Investing in Mutual Funds
#1. Define Your Investment Goal
You can easily plan your investment, avoid money loss and create wealth through mutual funds if you know your goal. However, if you are a newbie you can consider the parameters discussed below before defining your investment goal –
- Clearly define the purpose of your mutual fund investment such as your own home, or your retirement corpus.
- Understand the importance of tenure of Investment. Your investment tenure depends on the purpose of your investment. If you have long term investment goals such as retirement corpus, then invest in equity based mutual funds where risk and rewards are high.
- Mutual funds returns highly depend on your risk appetite. If you take high risk and invest purely in equity based mutual funds, then you can expect higher returns whereas if you invest in low risk debt funds, you get lower returns. The longer the tenure, the more risk you can take.
#2. Funds Category
The primary factor for the shortlisting of funds such as long term, short term, and Tax Saver. You must know each category to diversify your funds. You can also invest in hybrid funds which are balanced funds between equity and debt securities.
#3. Fund Performance
You can research for the best-performing fund in the last 3 to 5 years to get an overview of how the fund performed in the past.
#4. Asset Size and Fund holdings
You can go with the funds having asset size of 100 Cr or above. Bigger asset size means reliability of the fund house.
Fundholding means what type of securities a mutual fund is holding that affects the returns. More investment in stocks results in high returns but also increases the risk.
#5. Expense Ratio
Lower the expense ratio higher would be the return because expense ratio is the nominal fee that fund house charges annually from you to manage the funds.
Bigger fund sizes have low expense ratios.
Conclusion
I have curated a list of top mutual funds in India. Please tell me your favourite mutual funds and it’s performance in the comments section.