15 Most Recommended Mutual Funds to invest in 2024

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

10 Most Recommended Mutual Funds to invest in 2024 in India

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.

Suresh KP

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