Best Aggressive Growth Mutual Funds to invest for 2021
Stock markets have reached a new high in 2020 post covid-19 pandemic. Many investment experts believe that stock markets are going to take new high in 2021. Investing in aggressive mutual funds can deliver superior returns in the coming years. If you are one among such investor who are looking for high risk, high return funds, this article is for you. Which are the best aggressive growth mutual funds to invest now? Which are the top aggressive growth mutual funds to invest in 2021 that can provide higher returns?
Also Read: Top 10 Large Cap Mutual Funds 2020
What are aggressive growth mutual funds?
Aggressive growth funds are mutual funds which aim to provide higher returns by taking higher risk compared to an average risk investor. Midcap funds, small cap funds and sector funds fall in the aggressive growth mutual fund category. However sector funds are high risk and short term in nature. If you are looking for aggressive growth mutual funds for medium to long term, one should invest in midcap and small cap funds and avoid sector funds.
Criteria used to filter aggressive growth mutual funds
Here are the criteria used to filter these growth mutual funds.
1) Midcap funds and small cap funds are considered here.
2) Mutual Funds that have demonstrated consistent performance in terms of rolling returns with its peers and benchmark in the last 3 to 10 year timeline is taken.
3) Funds that have done extremely well in terms of annualized returns for the past 3 to 10 years considered.
4) We have filtered funds that have 5 Star and 4 Star rating from Valueresearch.
5) Considered funds that have AUM of Rs 500 Crores and above.
Top and Best Aggressive Growth Mutual Funds to invest for 2021
Here are the list of best aggressive growth mutual funds from midcap category.
| Fund Name | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Axis Midcap Fund | 14.0% | 11.0% | 12.0% | – |
| DSP Midcap Fund | 14.0% | 5.0% | 12.0% | 12.0% |
| Kotak Emerging Equity Fund | 11.0% | 3.0% | 11.0% | 12.0% |
| Invesco India Mid Cap Fund | 14.0% | 5.0% | 10.0% | 13.0% |
Here are the top aggressive growth mutual funds from small cap category.
| Fund Name | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| SBI Small Cap Fund | 13.0% | 3.0% | 14.0% | 17.0% |
| Axis Small Cap Fund | 11.0% | 8.0% | 12.0% | – |
| Nippon India Small Cap Fund | 11.0% | 0.0% | 10.0% | 15.0% |
| Kotak Small Cap Fund | 17.0% | 2.0% | 10.0% | 11.0% |
Aggressive Growth Mutual Funds – FAQs
What is the most aggressive mutual fund?
Out of these 8 aggressive growth funds indicated, SBI Smallcap mutual fund is the most aggressive mutual fund that delivered 16.7% annualized returns in the last 10 years and 12.7% annualized returns in the last 5 years.
Can aggressive mutual fund portfolio in India give high return?
Aggressive mutual funds indicated here are from midcap and smallcap segment. While the returns are not guaranteed, these funds have the potential to generate higher returns.
Which are the top rated aggressive growth funds as per Valueresearch?
Here are the top rated aggressive mutual funds with 5 star category from Value Research.
Axis Midcap Fund and DSP Midcap Fund from midcap category
SBI Small Cap Fund from small cap category.
Can I invest through SIP in these aggressive growth mutual funds?
Yes, you can invest in these aggressive growth mutual funds through SIP which can generate high returns with the disciplined regular savings. You can also check some of the Best Mutual Funds for SIP.
Can I invest the lump sum in these aggressive growth funds?
Lump sum investments in these small and midcap could be high risk. If you want to invest a lump sum amount, you can first invest in a ultra short term fund and do systematic transfer plan (STP) to these growth funds for next 9 to 12 months (like SIP).
How much returns I can expect from these aggressive funds?
Aggressive growth funds do not provide guarantee returns. However, one can expect 12% to 18% annualized returns in the long term though not guaranteed.
Is it safe to invest in aggressive growth mutual funds?
These midcap and smallcap funds are high risk, high return funds. If you do not want to take much risk, you should avoid such funds.
How long I need to invest in these aggressive growth mutual funds?
These funds can perform well if invested for 5-10 year period tenure.
For whom these aggressive funds are suitable?
Aggressive funds are from midcap and smallcap segment and are high risk. If you are a high risk investor and looking for high returns, you can invest in these funds.
Can I invest my retirement corpus in these aggressive mutual funds?
One should invest their retirement corpus in moderate to low risk investments that can provide stable fixed income. These aggressive funds are high risk funds, hence one should avoid investing their retirement corpus in such funds.
Also Read: Best Aggressive + Conservative Balanced Funds to Invest in 2020
I am a young / aggressive investor, can I invest in these funds?
Since you are a young / aggressive investor, you have the ability to take risks. First, understand how these funds would work, risks involved and then invest in such funds.
Can I invest in these funds for short to medium term?
In the short term, such funds might not perform well (like we are seeing such under performance of midcap and small cap segment in the last couple of years). Unless you are ready to invest in medium to long term (say 5 to 10 years), one should avoid such funds.
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Sir, your views and expectations on infrastructure funds, commodities (ferrous and non ferrous metal industries other than gold) and steel industry, automobile/ transportation funds, energy funds in 2021. As consumer usage has started to rise post covid and with vaccine in the horizon, can these sectoral/ thematic funds perform brightly in the coming year as compared to yesteryears (where some of these were in fact giving negative returns)
Hello Pratap, If we assume that vaccine is coming and all these sectors would improve, we may need to take a step back. What happened in the last 6 months. Without changing any fundamentals, stocks have zoomed. Hence the bull run may not long last in 2021 or 2022. There would be correction. Investing in disciplined way is the only solution for this. Yes I agree some of these sectors would rise, but it is difficult to tell at this point of time. Once I have clarity, I would provide an update on best sector funds to invest in 2021
Sir I am investing in HDFC TAX saver fund since last six years but as we can see the return in this scheme is not attractive. Should I exit from this fund? Please give your comment your opinion matters a lot.
Thanking you,
Divyesh
Hello Divyesh, HDFC Tax Saver fund is under performer in the last 5 years. You may exit such funds and invest in better funds. See this article for top performing funds. Thought this article is written an year back, all these funds are performing well. https://myinvestmentideas.com/2019/12/top-5-best-elss-mutual-funds-for-2020-to-save-tax/
dear Suresh,what do you think about the HDFC Infrastructure fund,Isnt it a consistent non-performer ! Why HDFC funds are managed thus ?
Hello Tom, This fund invests in one sector i.e. Infra sector. Such sector funds always are high risk. However, Infra segment, there are better funds. Yes this is under performer and one may review and exit
Can we have an article on following topic.
Post retirement peaceful tension free mutualfund investment to devlope corpus to leave as asset. S
Shanmukh, your comment is little confusiong. Are you looking for funds to invest post retirement or funds where you can develop/accumulate corpus to later invest for retirement? If you are talking about funds to invest post retirement, it is being posted next week.
I would say, can you give us some recommendations for worry free mutual funds to invest in our current retirement life and for future sustainment??
Sure Hilda, This article is on way and expected early next week