Maximize Your Returns With 10 Best Mutual Funds for November 2024
Many novice investors often seek recommendations for the best mutual fund to invest in. They asked their friends, colleagues, or mutual funds forums to find top-performing schemes as they began their investment journey or when considering additional investments. However, many of them find that the advice they receive online leaves them wanting more clarity or depth.
A quick online search typically directs you to various websites with pre-made lists of mutual funds. These lists often prioritize schemes based on their recent short-term performance. It’s common for certain categories to overshadow others in this ranking, specially if they are currently trending.
Here is the list of the 10 best mutual funds schemes:
- ICICI PRU Bluechip Equity Fund
- Nippon India Large Cap Fund
- Quant Flexi Cap
- Parag Parikh Flexi Cap Fund
- Motilal Oswal Midcap Fund
- Bandhan Small Cap Fund
- HDFC Flexi Cap Fund
- SBI Small Cap Fund
- SBI Equity Hybrid Fund
- Kotak Emerging Equity Fund
Here are some key considerations to keep in mind when investing in these schemes. Begin by researching each category to determine if it aligns with your investment goals and risk tolerance.
Here are five different equity mutual fund categories. 1. aggressive hybrid, 2. large cap, 3. mid cap, 4. small cap, 5. flexi cap schemes, which should be sufficient for regular mutual fund investors.
Aggressive Hybrid Funds
Aggressive hybrid schemes, also known as balanced or equity-oriented hybrid schemes, are well-suited for newcomers to equity mutual funds. Aggressive hybrid schemes allocate between 65%-80% to equity and 20-30% to debt, which creates a balanced portfolio that tends to be less volatile than pure equity schemes. This makes aggressive hybrid schemes an ideal option for conservative equity investors aiming to build long-term wealth with a lower level of volatility.
Large Cap Funds
Some equity investors prefer a safer approach while investing in stocks; that is why large-cap schemes are designed for those investors. Large-cap schemes focus on the top 100 stocks, making them comparatively safer than other pure equity funds and less volatile than mid-cap or small-cap options. Large-cap schemes are ideal for those seeking steady returns with greater stability.
Mid-Cap and Small-Cap Funds
Mid-cap schemes primarily invest in medium-sized companies, while small-cap funds focus on smaller companies based on market capitalization. This scheme tends to be more volatile, and it also offers the potential for higher returns over the long term. These mutual fund categories may be suitable if you have a long-term investment horizon and can tolerate higher risk.
Flexi Cap Funds
For a regular equity investor with a moderate risk appetite, flexi-cap mutual funds, also known as diversified equity schemes, offer an excellent option for stock market exposure. These funds invest across various market capitalizations and sectors, guided by the fund manager’s outlook. By investing in these schemes, an investor can benefit from potential growth in any sector or stock category.
When searching for “best” mutual funds, it often won’t lead you to the perfect choice for your needs. It’s essential to choose a scheme that fits your investment goals, timeline, and risk tolerance. If you’re new to mutual funds or unsure about the basics, consulting a mutual fund advisor can provide valuable guidance to make informed choices.
