Best Mutual Funds to invest in 2024 (as per Google AI Gemini)

Earlier Google has launched its Artificial Intelligence (AI) tool named Google Bard as a competition to ChatGPT. Recently, Google has renamed Google Bard to Google Gemini reflecting its AI model integration across services. I asked Google Gemini “Best Mutual Funds to invest in India in 2024” and initially it resisted to provide the mutual funds list. Later, it generated the details with T&C. In this article we would list down Best Mutual Funds to invest in 2024 in India as per Google Gemini AI, performance metrics and our view about such funds.

Also Read: 5 Mutual Funds with 15-Year Returns between 2,460% to 3,300%

Why did Google Gemini resist in providing best mutual funds list for 2024?

Google Gemini AI says “I am unable to provide any specific recommendations for mutual funds as it would be irresponsible to offer financial advice without understanding your individual circumstances and risk tolerance”.

This is 100% true.

Then how investors should pick-up mutual funds for investment?

Like I keep indicating in our previous articles, investors should filter funds based on their investment goals, investment horizon (tenure) and risk tolerance (high risk, moderate risk or low risk).

Best Mutual Funds to invest in 2024 in India (as per Google Gemini AI)

While Google Gemini AI resisted for providing the best mutual funds list for 2024, it says “here are some of the top-performing mutual funds in India….” with a list of funds. It also says this is based on the performance of 2023. Here is the list of funds.

#1 – Quant Large Cap Fund

#2 – JM Large Cap Fund

#3 – Bank of India Bluechip Fund

#4 – HDFC Mid-Cap Opportunities Fund

#5 – Parag Parikh Flexi Cap Fund

#6 – Axis Midcap Fund

#7 – Nippon India Small Cap Fund

#8 – SBI Small Cap Fund

#9 – HDFC Small Cap Fund

Best Mutual Funds to invest in 2024 in India (as per Google AI Gemini)

#1 – Quant Large Cap Fund

Investment Objective:

The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Large Cap and Mid Cap companies.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 49.2%
  • 2-Year Return: NA
  • 3-Year Return: NA
  • 5-Year Return: NA
  • 10-Year Return: NA

Annualised Returns of the fund

  • 1-Year Return: 49.2%
  • 2-Year Annualised Return: NA
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
  • 10-Year Annualised Return: NA
  • 10-Year Annualised Return: 29%

Our View:

This fund was launched in Aug-2022, just 1.5 years back and generated 41.5% since inception. We can majorly attribute this due to current bull run in the stock market. While I am not against such funds, investors should filter funds that have consistently performed well in the medium to long term. The reason is that such funds would have gone through upside and downside in various market cycles and performance factors such scenarios.

#2 – JM Large Cap Fund

Investment Objective:

The scheme seeks long term capital growth and appreciation through investment primarily in equities.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 38%
  • 2-Year Return: 43%
  • 3-Year Return: 68%
  • 5-Year Return: 125%
  • 10-Year Return: 350%

Annualised Returns of the fund

  • 1-Year Return: 38%
  • 2-Year Annualised Return: 20%
  • 3-Year Annualised Return: 19%
  • 5-Year Annualised Return: 18%
  • 10-Year Annualised Return: 16%

Our View:

This is a large cap fund that invests in large cap stocks. This fund has been consistently performed well in the medium to long term. On the negative side, this fund has a low AUM of Rs 80.77 Crores (I keep recommending funds that have a size above Rs 100 Crores) and it has a high expense ratio of 1.75%. There are several top performing large cap mutual funds which as expense ratio as low as 0.5%. Investors should think these aspects before investing in such funds.

#3 – Bank of India Bluechip Fund

Investment Objective:

The investment objective of the scheme is to provide investors with the opportunities of long term capital appreciation by investing predominantly in equity and equity-related instruments of large cap companies.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 40%
  • 2-Year Return: 39.4%
  • 3-Year Return: NA
  • 5-Year Return: NA
  • 10-Year Return: NA

Annualised Returns of the fund

  • 1-Year Return: 40%
  • 2-Year Annualised Return: 18%
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
  • 10-Year Annualised Return: NA

Our View:

This blue chip fund invests in large cap stocks and was launched 2 years back. While the performance in the short term is good, thanks to stock market bull run, even this fund size is low at Rs 122 Crores and high expense ratio of 1.59%. Investors can invest in any other consistently performing funds that have a history of over 5 years.

You may like: 5 MF Schemes with 3-Year Returns between 160% to 215%

#4 – HDFC Mid-Cap Opportunities Fund

Investment Objective:

The fund’s investment objective is to generate long-term capital growth by investment in prominent mid-cap companies. The fund objective is to generate alpha through judicious mid-cap stock selection.

Performance Details

Absolute Returns of the Fund

  • 1-Year Return: 46%
  • 2-Year Return: 68%
  • 3-Year Return: 151%
  • 5-Year Return: 260% (1 Lac would have turned to 3.6 Lacs)
  • 10-Year Return: 490%

Annualised Returns of the fund

  • 1-Year Return: 46%
  • 2-Year Annualised Return: 30%
  • 3-Year Annualised Return: 36%
  • 5-Year Annualised Return: 29%
  • 10-Year Annualised Return: 20%

Our View:

Midcap mutual funds invests majorly in midsize companies. These carry a high risk compared to large cap companies. However, such funds provide high returns compared to large cap funds. This fund has a beta of 0.9 and alpha of 7.1. This fund generated 19.36% annualised returns since inception. I am personally invested in this mid cap mutual fund too. High risk tolerance investors can invest in such funds for medium to long term perspective. Moderate or low risk investors can stay away from such funds.

#5 – Parag Parikh Flexi Cap Fund

Investment Objective:

The investment objective of the Scheme is to seek to generate long-term capital growth from an actively managed portfolio primarily of Equity and Equity Related Securities. The scheme shall invest in Indian equities, foreign equities and related instruments and debt securities.

Performance Details

Absolute Returns of the Fund

  • 1-Year Return: 40%
  • 2-Year Return: 41%
  • 3-Year Return: 83%
  • 5-Year Return: 198% (1 Lac would have turned to 2.98 Lacs)
  • 10-Year Return: 590%

Annualised Returns of the fund

  • 1-Year Return: 40%
  • 2-Year Annualised Return: 18%
  • 3-Year Annualised Return: 22%
  • 5-Year Annualised Return: 24%
  • 10-Year Annualised Return: 21%

Our View:

Flexicap mutual funds invests in large cap stocks, mid cap stocks and small size companies. Since it invests in Midcap and small-size companies, these carry high risk. This fund has a beta of 0.66 and alpha of 7.1. This fund generated 20.6% annualised returns since inception. High risk tolerance investors can invest in such funds for medium to long term perspective. Moderate or low risk investors can stay away from such funds.

#6 – Axis Midcap Fund

Investment Objective:

The investment objective of the Axis Mid Cap Fund is to provide long-term capital growth to its investors by allocating its capital primarily in equity and equity-related instruments of mid-cap companies.

Performance Details

Absolute Returns of the Fund

  • 1-Year Return: 34%
  • 2-Year Return: 38%
  • 3-Year Return: 69%
  • 5-Year Return: 170% (1 Lac would have turned to 2.7 Lacs)
  • 10-Year Return: 653%

Annualised Returns of the fund

  • 1-Year Return: 34%
  • 2-Year Annualised Return: 18%
  • 3-Year Annualised Return: 19%
  • 5-Year Annualised Return: 22%
  • 10-Year Annualised Return: 22%

Our View:

Like I indicated earlier, mid cap mutual funds invests in midsize companies and carry a high risk compared to large cap funds, however, generate high returns. This fund has a beta of 0.82 and alpha of minus 3.49. This fund generated 19.5% annualised returns since inception. You would have confused with negative alpha. After Axis MF scam broke out 1.5  years, we could see under performance in Axis Funds for a year. We wrote article earlier on Worst Performing Axis Mutual Funds too. Looks things got stabilised now. High risk tolerance investors can invest in such funds for medium to long term perspective. If you still have doubts about such funds, go for other top performing mid cap funds.

#7 – Nippon India Small Cap Fund

Investment Objective:

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

Performance Details

Absolute Returns of the Fund

  • 1-Year Return: 55%
  • 2-Year Return: 76%
  • 3-Year Return: 158%
  • 5-Year Return: 307% (1 Lac would have turned to 4.07 Lacs)
  • 10-Year Return: 1,237%

Annualised Returns of the fund

  • 1-Year Return: 55%
  • 2-Year Annualised Return: 33%
  • 3-Year Annualised Return: 37%
  • 5-Year Annualised Return: 32%
  • 10-Year Annualised Return: 30%

Our View:

Like I indicated in our earlier articles, small cap funds invest in small cap companies and are high risk. Such funds are rewarded with higher returns too. This fund has a beta of 0.83 and alpha of 10.4. This fund has been a consistent performer that has generated 22.9% annualised returns since inception. As indicated earlier, I am personally investing even in this small cap fund. It was highlighted in 5 Mutual Fund Schemes with 10-Year Returns between 920% to 1,250% article too. High risk investors can make such funds as part of their mutual fund portfolios for a medium to long term. Other investors can avoid such funds.

#8 – SBI Small Cap Fund

Investment Objective:

The scheme seeks to provide investors with opportunities for long-term growth in the capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of small cap companies.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 35%
  • 2-Year Return: 51%
  • 3-Year Return: 98%
  • 5-Year Return: 235% (1 Lac would have turned to 3.35 Lacs)
  • 10-Year Return: 1,140%

Annualised Returns of the fund

  • 1-Year Return: 35%
  • 2-Year Annualised Return: 23%
  • 3-Year Annualised Return: 26%
  • 10-Year Annualised Return: 27%
  • 10-Year Annualised Return: 28.5%

Our View:

Even this smallcap fund invests in small cap companies which are considered as high risk-high return fund. This fund has a beta of 0.64 and alpha of 4.36. This fund has been a consistent performer that has generated 26% annualised returns since inception. High risk investors can invest in such funds and others should avoid them.

#9 – HDFC Small Cap Fund

Investment Objective:

To provide long-term capital appreciation /income by investing predominantly in Small-Cap companies. There is no assurance that the investment objective of the Scheme will be realized

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 52%
  • 2-Year Return: 71%
  • 3-Year Return: 136%
  • 5-Year Return: 212% (1 Lac would have turned to 3.12 Lacs)
  • 10-Year Return: 720%

Annualised Returns of the fund

  • 1-Year Return: 51%
  • 2-Year Annualised Return: 31%
  • 3-Year Annualised Return: 33%
  • 10-Year Annualised Return: 25%
  • 10-Year Annualised Return: 23.4%

Our View:

Even this small cap mutual fund invests in small cap companies which are high risk and generate high returns too. This fund has a beta of 0.87 and alpha of 6.54. This fund has been a consistent performer that has generated 21% annualised returns since inception. High risk investors can invest in such funds and others should avoid them.

Is this list fake or did Google Gemini AI really generated this list?

Those who might criticize our article saying that Google’s AI Gemini does not provide a specific list of funds, check the video given below. This was recorded last week on my mobile.

Conclusion: It is immaterial whether any recommendations are coming from Google AI Gemini or from our articles. Investors should first consider their investment goals, how long they can invest (tenure) and risk tolerance (high risk, moderate risk or low risk). The second step could be filtering mutual funds based on medium to long term performance and finally expert views can add value to your decision.

 

Suresh KP

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