Top 10 Mutual Funds in India 2020

Concept of  Mutual Fund Schemes

A mutual fund scheme is a collection of investment capital from various investors aimed to invest money in different markets and securities, in line with the common investment objectives agreed upon, between the mutual fund house and the investors. 

In other words, through investment in a mutual fund, an investor can get access to equities, bonds, money market instruments, and other securities that will be professionally managed by experienced fund managers

In this blog, WODS is going to discuss top 10 mutual funds in India 2020 based on several parameters

Type of Mutual Fund

There are various types of mutual fund schemes depending on its structure and the nature of investments made.

Open-Ended Funds - In open-ended funds, investors can enter or exit at any point of time without any penalty cost. There will be no exit load applicable if the investor decides to withdraw the money within one year of investment

These mutual fund schemes do not have any kind of time frame in which it has to be closed. The on-going entry and exit of investors imply that the unit capital in an open-ended fund would keep changing regularly.

Close-ended funds - These funds have a fixed maturity period.  Investors can buy units of a close-ended scheme, from the fund, only during its NFO.  

Post NFO the fund is listed in a stock exchange. Such listing is compulsory for close-ended schemes.  Therefore, after the NFO, investors who want to buy units will have to find a seller for those units in the stock exchange.  

Similarly, investors who want to sell units will have to find a buyer for those units in the stock exchange.  Since post-NFO sale and purchase of units happen to or from counter-party in the stock exchange – and not to or from the scheme – the unit capital of the scheme remains stable or fixed throughout the investment horizon.

Interval funds - These funds combine features of both open-ended and close-ended schemes. They are largely close-ended but become open-ended at pre-specified intervals.

For example, an interval scheme might become open-ended between January 1 to 15, and July 1 to 15, each year.

Investors need not completely depend on the stock exchange to be able to buy or sell units of the interval fund

Best mutual funds to invest in 2020 India - Equity

Equity mutual funds invest in equity instruments issued by companies. The fund’s main objective is to derive long-term appreciation in the value of the portfolio from the gains in the value of the securities held and the dividends earned on it. 

The equity funds can be categorized based on the type of equity shares that are included in the portfolio and the strategy or style adopted by the fund manager to pick the securities and manage the portfolio

Generally, equity funds are of three types: large-cap, mid-cap, and small-cap

To ensure uniformity in respect of the investment universe for equity schemes, it has been decided by SEBI to define large-cap, mid-cap, and small-cap as follows:  

a. Large-Cap: 1st -100th company in terms of full market capitalizations

b. Mid-Cap: 101st -250th company in terms of full market capitalizations

c. Small-Cap: 251st company onwards in terms of full market capitalizations

Here are the top 10 mutual funds in India 2020 in the equity large-cap, small-cap and mid-cap fund categories which will give high returns and will also provide minimum capital risk. These funds are suitable for investors having less risk appetite

Top performing mutual funds in India

Axis Bluechip-Fund Growth

BNP Paribas Large Cap Growth

ICICI Pru Bluechip Fund Growth

Edelweiss Large Cap Fund Growth

Axis Midcap Fund Growth

DSP Midcap Fund Growth

Invesco India Midcap Growth

L&T Midcap Fund

SBI Small Cap Fund Growth

Nippon India Small Cap Growth

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Start Investing Using SIP

Mutual funds also offer facilities that help investors to start investing amounts regularly through a Systematic Investment Plan (SIP), or withdraw amounts regularly through a Systematic Withdrawal Plan (SWP), or move money between different kinds of schemes through a Systematic Transfer Plan (STP). 

Such systematic approaches promote investment discipline, which is useful in long-term wealth creation and protection. SWPs allow the investor to structure a regular cash flow from the investment account.

Even long term disciplined investors investing for the last 10 years have lost their wealth in the recent market crash.

It is extremely difficult to predict the market bottom during a pandemic. So, our advice is to start investing in good mutual fund schemes and build a high-quality portfolio. Even though some companies will be impaired permanently many large companies will increase their market share. So, there will be winners and losers during this crisis.

For example, if Rs. 500 is invested in a good quality portfolio it can be worth 1000 in the next 3 years. So, what we are basically saying is that an investor can double his net worth in just 3 years if he starts investing properly

The fall in the market due to the outbreak of the pandemic hasn’t hurt investor sentiments at all. In fact, the inflow of SIP’s has significantly increased during the lockdown period. Hence, we can say investors are much more confident by investing through SIP’s

If you are looking to build an equity portfolio in the current market environment, mutual funds may be one of the best options to start with. Mutual funds offer instant diversification across asset classes and securities and are managed by experts. Moreover, mutual funds offer the flexibility of investing through a systematic investment plan (SIP) which is an optimal choice in volatile times.

Here’s why SIPs are best to begin your investment journey with:

Start investing through SIP. It will help you form a habit of saving and brings a financial discipline that can help create a sizeable investment portfolio over time

SIP help manage market volatility by its principle of rupee cost averaging i.e. buying less when markets are high and more when markets are low

The power of compounding makes SIPs more attractive over the long-term by reinvesting gains in the portfolio.

It is convenient and can be customized to your budget for a specific financial goal. E.g., if you are planning to save for your child’s college fee in the next 10 years for a sum of 7 lakhs. You can start investing in a sum of Rs. 3,825* monthly. (*assuming the annualized return of 8% per annum)

Best mutual funds for SIP

Canara Robeco Emerging Equities - Growth

Fund Objective: To generate capital appreciation by primarily investing in various mid-cap stocks.

Min. Investment: 5000

Subsequent Investment: 1000

Multiples after Initial Investment: 1000

Expense Ratio: 1.96

Risk: Moderately High

Portfolio of the Fund

Name of Holding	Net Assets (%)
1	Reliance Industries Ltd.	6.14
2	HDFC Bank Ltd.	5.79
3	ICICI Bank Ltd.	4.78
4	Bharti Airtel Ltd.	3.22
5	Atul Ltd.	2.89
6	Axis Bank Ltd.	2.74
7	Infosys Ltd.	2.70
8	Avenue Supermarts Ltd.	2.61
9	Hindustan Unilever Ltd.	2.58
10	Ipca Laboratories Ltd.	2.43

Mirae Asset Large Cap Fund - Growth

Min. Investment:5000

Subsequent Investment: 1000

Multiples: 1*500

SIP Initial Investment: 1000

Expense Ratio: 1.72

Risk: Moderately High

Asset Allocation :

Name of Holding	Net Asset (%)
Equity	97.83
treps/reverse repo	1.84
Exchange-Traded Funds	0.39
Mutual Fund Units	0.01
Net Receivables/(Payables)	-0.07

ICICI Prudential Bluechip Fund - Growth

Fund Objective: Seeks to generate long-term capital appreciation and income distribution to unitholders from a portfolio that is invested in equity and equity-related securities of about 20 companies belonging to the large-cap domain and the balance in debt securities and money market instruments. 

The Fund Manager will always select stocks for investment from among Top 200 stocks in terms of market capitalization on the National Stock Exchange of India Ltd. If the total assets under management under this scheme go above Rs.1000 crores the Fund Manager reserves the right to increase the number of companies to more than 20.

Min. Investment: 100

Subsequent Investment: 100

Multiples: 1

SIP Initial Investment: 100

Expense Ratio: 1.73

Risk: Moderately Low

Top 10 Holdings

Sr.	Name of Holding	Net Assets (%)
1	HDFC Bank Ltd.	8.78
2	Infosys Ltd.	7.11
3	Bharti Airtel Ltd.	6.07
4	Reliance Industries Ltd.	5.96
5	ICICI Bank Ltd.	5.49
6	SBI Life Insurance Company Ltd.	3.27
7	ITC Ltd.	3.26
8	Axis Bank Ltd.	3.18
9	Hindustan Unilever Ltd.	3.06
10	NTPC Ltd.	3.06

To get personalized and detailed mutual fund advisory services contact - wolfofdstreet2020@gmail.com.

Our expert research and advisory teams will help you in picking up the best mutual fund schemes. Give us a call @8335868839

Disclaimer: Mutual Fund investments are subject to market risks. Please read all scheme related documents carefully before investing. The information contained herein is obtained from publicly available data or other sources believed to be reliable and WODS has not independently verified the accuracy and completeness of the said data and hence it should not be relied upon as such. While we would endeavor to update the information herein on a reasonable basis, WODS, its subsidiaries, and associated companies, their directors and employees (“WODS and affiliates”) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent WODS and affiliates from doing so. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision.