One of the best ways to save regularly and achieve your financial goals faster is to invest in mutual funds through SIP (Systematic Investment Plan). One can invest as little as Rs 100 per month through SIP and create substantial wealth by increasing the SIP value year on year. With the stock market reaching new highs, we could see the superior returns in both SIP and annualized returns. In this article, we will discuss the 15 Most Recommended Mutual Funds to invest in 2024 in India.
How did we filter these Most Recommended Mutual Funds?
- We considered all equity funds and hybrid mutual funds for this purpose.
- We selected funds that have generated highest annualized returns in the last 10 years.
- Additionally, filtered funds based on their highest SIP returns. We also applied filters to identify those with the highest rolling returns in the last 3 to 5 years time frame.
- We chose three funds each from large-cap, mid-cap, small-cap, flexi-cap and hybrid categories, and one fund from global fund category. This way we have identified 15 Best Mutual Funds to Invest in 2024.
While we get into the article, you can also check Worst Performing Mutual Funds in the last 10 years
15 Most Recommended Mutual Funds to invest in 2024
Now let’s get into more details about these funds
#1 – Most Recommended Largecap Mutual Funds
Here are the three large-cap funds and their annualized returns over the last 1, 3, 5, and the 10 years. These funds have generated annualized returns ranging between 17.2% to 18.3% over the last 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| Nippon India Large Cap Fund | 44.8% | 24.7% | 18.3% | 18.3% |
| Baroda BNP Paribas Large Cap Fund | 41.8% | 19.6% | 19.1% | 17.5% |
| ICICI Prudential Bluechip Fund | 42.2% | 21.4% | 18.6% | 17.2% |
These funds have generated SIP returns ranging from 16.6% to 17.8% over the last 10 years.
| Mutual Fund | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| Nippon India Large Cap Fund | 26.5% | 25.3% | 17.8% |
| Baroda BNP Paribas Large Cap Fund | 22.7% | 21.7% | 16.6% |
| ICICI Prudential Bluechip Fund | 24.0% | 23.4% | 17.2% |
Large-cap funds primarily invest in large-cap stocks and offer stable returns over the medium to long term.
In the above list, Nippon India Largecap Fund and ICICI Pru Bluechip Funds are among the 20 Mutual Fund Schemes that generated positive returns every year in the last 10 years.
If you are a moderate-risk appetite investor willing to invest for the medium to long term (over 5 years), you can consider investing in such funds. However, low-risk investors and those with financial goals of less than 5 years may choose to avoid these funds.
#2 – Most Recommended Midcap Mutual Funds
Here are the three mid-cap funds and their annualized returns over the last 1, 3, 5, and the 10 years. These mid-cap funds have generated annualized returns ranging from 21% to 23.5% over the last 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| Motilal Oswal Midcap Fund | 57.1% | 34.7% | 27.1% | 23.5% |
| HDFC Mid-Cap Opportunities Fund | 55.6% | 29.0% | 23.9% | 22.6% |
| Quant Mid Cap Fund | 65.7% | 36.8% | 31.8% | 21.0% |
These funds have generated SIP returns ranging from 21.1% to 24.8% over the last 10 years.
| Mutual Fund | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| Motilal Oswal Midcap Fund | 35.0% | 33.9% | 22.1% |
| HDFC Mid-Cap Opportunities Fund | 31.4% | 31.0% | 21.1% |
| Quant Mid Cap Fund | 36.4% | 38.8% | 24.8% |
Mid-cap funds primarily invest in mid-size companies. While these are high risk funds, these have potential to generate high returns.
Among the above list, HDFC Mid=Cap Opportunities Fund is among the Best Mutual Funds to invest in 2024 recommended by Google Gemini AI.
If you have a high risk appetite and are willing to invest for the long term (8-10 years), you may consider investing in such funds. However, moderate or low-risk investors and those with financial goals of shorter tenure may opt to avoid these funds.
#3 – Most Recommended Small Cap Mutual Funds
Here are the three small-cap funds and their annualized returns over the last 1, 3, 5, and the 10 years. These small-cap funds have generated annualized returns ranging from 20.7% to 28.2% over the last 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| Nippon India Small Cap Fund | 54.2% | 34.6% | 29.7% | 28.2% |
| Franklin India Smaller Companies Fund | 53.7% | 31.0% | 23.0% | 22.8% |
| Quant Small Cap Fund | 66.5% | 41.8% | 36.6% | 20.7% |
These funds have generated SIP returns ranging from 20.6% to 27.1% over the last 10 years.
| Mutual Fund | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| Nippon India Small Cap Fund | 31.6% | 36.7% | 25.5% |
| Franklin India Smaller Companies Fund | 30.9% | 32.2% | 20.6% |
| Quant Small Cap Fund | 37.2% | 47.5% | 27.1% |
Small-cap funds primarily invest in small-cap stocks and are high risk. However, such funds have the potential to generate handsome returns in the long term.
If you have a high-risk appetite and are willing to invest for the long term (8-10 years), you may consider investing in such funds. However, moderate or low-risk investors and those with financial goals of shorter tenure may opt to avoid these funds.
#4 – Most Recommended Flexi Cap Mutual Funds
Here are the three flexi-cap funds and their annualized returns over the last 1, 3, 5, and the 10 years. These flexi-cap funds have yielded annualized returns ranging from 20.4% to 24.9% over the last 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| Quant Flexi Cap Fund | 58.6% | 32.8% | 30.3% | 24.9% |
| JM Flexi Cap Fund | 58.3% | 26.8% | 23.3% | 20.8% |
| Parag Parikh Flexi Cap Fund | 40.7% | 22.8% | 23.7% | 20.4% |
These funds have generated SIP returns ranging from 20.4% to 24.6% over the last 10 years.
| Mutual Fund | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| Quant Flexi Cap Fund | 31.3% | 36.1% | 24.6% |
| JM Flexi Cap Fund | 31.6% | 28.6% | 20.4% |
| Parag Parikh Flexi Cap Fund | 23.7% | 26.2% | 20.7% |
Flexi-cap funds invest in large-cap, mid-cap, and small-cap stocks. Given its exposure to mid-cap/small-cap segments, it is considered a high-risk fund. While the large-cap component provides stable returns, its mid-cap and small-cap segments have the potential to generate higher returns.
In the above list, Quant Flexicap Fund was among the 5 Mutual Fund Schemes with 10-Year Returns between 920% to 1,250%.
If you have a high-risk appetite and are willing to invest for the medium to long term (over 5 years), you may consider investing in such funds. However, moderate or low-risk investors and those with financial goals of less than 5 years may choose to avoid such funds.
#5 – Most Recommended Aggressive Hybrid Mutual Funds
Here are the two hybrid mutual funds and their annualized returns over the last 1, 3, 5, and the 10 years. These hybrid funds have yielded annualized returns ranging from 17.5% to 18.9% over the last 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| ICICI Prudential Equity & Debt Fund | 40.8% | 25.5% | 20.9% | 18.9% |
| HDFC Balanced Advantage Fund | 39.9% | 24.1% | 18.5% | 17.5% |
These funds have generated SIP returns ranging from 17.7% to 18.9% over the last 10 years.
| Mutual Fund | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| ICICI Prudential Equity & Debt Fund | 25.8% | 26.1% | 18.9% |
| HDFC Balanced Advantage Fund | 26.6% | 24.9% | 17.7% |
A hybrid fund invests in equity, debt, and commodities based on the fund’s investment strategy. Since it includes non-equity segment too, these funds are considered less risky compared to pure equity funds.
If you are a moderate-risk investor willing to invest for the medium to long term (over 5 years), you may consider investing in such funds.
#6 – Most Recommended Global Mutual Funds
Here is one global mutual fund and its annualized returns over the last 1, 3, 5, and the 10 years.
| Mutual Fund | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|---|
| Motilal Oswal Nasdaq 100 Fund of Fund | 47.0% | 17.0% | 24.1% | NA |
This fund has generated SIP returns of 22.4% over the last 5 years.
| Mutual Fund Name | 3 Yr | 5 Yr | 10 Yr |
|---|---|---|---|
| Motilal Oswal Nasdaq 100 Fund of Fund | 22.5% | 22.4% | NA |
The fund invests in the NASDAQ 100 index, which has delivered superior returns of over 20% in the last 10 years. This fund was launched less than 10 years ago.
This mutual is among the list of Best Mutual Funds to invest in 2024.
Since this fund invests in the NASDAQ 100 index, which is outside India, it carries foreign exchange risk and geopolitical risk. If you are a high-risk investor willing to invest for the medium to long term (over 5 years), you may consider investing in such funds.
FAQs on Most Recommended Mutual Funds in India
1) Which are the top-5 mutual funds in India?
Investors should choose mutual funds based on their financial goals, risk appetite, and investment time frame. If you’re seeking the top 5 mutual funds in India based on their performance over the last 10 years, consider the following:
- Nippon India Smallcap Fund
- SBI Smallcap Fund
- Quant ELSS Tax Saver Fund
- Quant Flexicap Fund
- Axis Small Cap Fund
2) Which is the Most Successful Mutual Fund?
Over the past 20 years, Sundaram Midcap Fund has outperformed its peers and generated highest annualized returns of 21.5%.
3) Which SIP is best for 10 years?
SIP, also known as Systematic Investment Plan in Mutual Funds, allows investors to invest a fixed amount on a monthly or quarterly basis. When choosing mutual funds for investment, consider your investment goals, risk appetite, and investment tenure.
- For high-risk investors, options include large-cap, mid-cap, small-cap, and flexi-cap mutual funds.
- Moderate-risk investors may opt for large-cap mutual funds along with hybrid funds.
- Low-risk investors should consider conservative hybrid funds or debt mutual funds.
4) Can you get 20% SIP return?
May or may not. However, it’s important to understand that higher returns often come with higher risk. If you evaluate the above 15 mutual funds, you’ll find that 100% of mid-cap, small-cap, flexi-cap, and global funds have consistently generated over 20% annualized returns in the last 3, 5, and 10 years. While these options offer high returns, they also come with higher risk
5) Which mutual fund is best to invest now?
The best mutual fund to invest in depends on your risk appetite, investment duration, and financial goals. If someone is advising you on mutual funds without considering these factors, your mutual fund portfolio could be negatively affected.
- 10.4% UGRO Capital NCD – Oct-2024 – Issue Details and Review - October 10, 2024
- 10.1% Muthoot Fincorp NCD – Oct-2024 – Issue Details and Review - October 7, 2024
- 11% Edelweiss Financial Services NCD Oct-2024 Issue Details - October 6, 2024
Your financial articles are very useful for self development and for better investment pathway.
Good recommendations.
Please send me the best sip investment suggestions