If you were looking for the Top 10 mutual funds For long-term growth then your search ends here. Along with this, these mutual funds also adjust their risk very well and will give you good wealth with less risk.
- Nippon India Small Cap Fund
- Quant Mid Cap Fund
- Parag Parikh Flexi Cap Fund
- Nippon India Large Cap Fund
- Axis Small Cap Fund
- Motilal Oswal Mid Cap Fund
- HDFC Mid Cap Opportunities Fund
- UTI Nifty 50 Index Fund
- SBI Contra Fund
- Mirae Asset ELSS Tax Saver Fund
| FUND NAME | 1 Year Returns | 3 Year Returns |
| Nippon India Small Cap Fund | 56.59% | 34.9% |
| Quant Mid Cap Fund | 67.55% | 37.93% |
| Parag Parikh Flexi Cap Fund | 41.13% | 23.36% |
| Nippon India Large Cap Fund | 46.03% | 25.6% |
| Axis Small Cap Fund | 41.15% | 27.03% |
| Motilal Oswal Mid Cap Fund | 62.15% | 36.22% |
| HDFC Mid Cap Opportunities Fund | 58.25% | 29.74% |
| UTI Nifty 50 Index Fund | 29.8% | 16.07% |
| SBI Contra Fund | 49.33% | 30.9% |
| Mirae Asset ELSS Tax Saver Fund | 36.51% | 18.49% |
So from this table, we can know how much returns the best mutual funds have given in 1 year and 3 years.
How To Select Best Mutual Funds?
If you also want to select the best mutual funds, then there are many parameters for this. But today we will tell you some such parameters so that you can choose the best mutual funds for yourself and in the long run, those mutual funds will create your wealth.
Parameters For Selecting Best Mutual Funds:-
- Always check the expense ratio
- Check past performance ratio
- Also check the alpha, beta, and Sortino of the scheme
- Check turnover ratio
- See sectors holding
1. Expense Ratio:-
Expense ratio is the rate of expenses that the AMC deducts from the investor’s investment every year. The lower the expense ratio, the more profit the investor will make.
2. Past Performance:-
If the past performance of a fund is poor, it means that investing in that scheme will generate less wealth. But if the past performance of a fund is good then we can assume that the fund will give similar performance in future also.
3. Alpha, Beta, Sortino:-
If the alpha of a fund is high then it means that that fund is giving more returns than its benchmark.
If the beta of a fund is more than 1%, it means that the fund is more volatile.
If the Sortino of a fund is negative, it means that the fund is generating good risk-adjusted returns.
4. Turnover Ratio:-
The turnover ratio is the ratio which tells us how often the holdings in a fund are changing. If a fund manager changes more stocks, it means that he does more churning. You should prefer that fund which has a low turnover ratio.
5. Sectors Holding:-
If you are selecting a mutual fund scheme, then you should also check the sector holding of that fund. So that you will be able to divide your money according to sectors.
We hope that now you have the information about which funds can be good for wealth creation and how to select mutual funds for wealth creation. There are many types of mutual funds such as – equity mutual funds, debt mutual funds, hybrid mutual funds, liquid funds, etc. But if our time horizon is long term then we should invest more in equity mutual funds.
Best Time To Invest In Mutual Funds?
Now is the right time to invest in mutual funds. But if you invest all the money at once, you will not get the benefit of averaging. The simple solution is to invest through SIP every month. And if ever there is a huge decline in the stock market, you can also do a little lump sum.
