In this article, we will give you India’s Top 10 Performing high return paying best mutual funds to invest in for the year 2022. We will always strive to impart knowledge to our readers without any prejudice, and without succumbing to any kind of pressure on such a subject. so, Let’s begin!
Mutual Fund Definition and Understanding:
A mutual fund is a type of financial security that is made up of a pool of money collected from several retail and institutional investors to invest in securities like primary and secondary markets (stocks, IPO, etc.), Debts (bonds, money market instruments, loans), Derivatives, Hybrid (combination of debt and equity) and other securities. In this article, we have sorted the best mutual funds to invest across various categories based on various researches and unbiased data from many reliable sources mentioned in the article.
Mutual funds are managed by professional fund managers who assign the fund’s assets and generate capital gains or income for the investors. All the fund’s portfolio is organized and financed to match the investment objectives as mentioned in the Key Information Memorandum (KIM) stated in Asset Management Company (AMC)’s prospectus and AMC website.
Mutual funds give ample opportunity to retail investors to invest in securities like equities, bonds, derivatives, and other securities which are well managed by professional fund managers. Each investor (unit holder) therefore, takes part in the profit or loss of the fund.
The price of a mutual fund share is called as NAV or Net Asset Value which is the unit price of a mutual fund scheme. Mutual funds are bought or sold on the basis of NAV.
Mutual Funds Investment: Everything You Need to Know
The basic concept for the introduction and implementation of a mutual fund is of utmost importance for any developed country. A mutual fund provides a strong financial market with vast participation of retail investors which is the basic pillar of financial freedom and development for any economy. Mutual fund, with a view to encouraging investment and saving, provides huge participation in the income and profits of the organization which in the end is beneficial for the overall development of the economy.
The mutual fund industry in India started in the year 1963 with the formation of UTI (Unit Trust of India) by an act of Parliament and functioned under the regulatory and administrative control of the Reserve Bank of India (RBI).
Mutual funds are designed in such a way that investors can invest money depending on the risk they want to take, the amount of investment, goal-based planning, duration of investment, etc.
AMFI (Association of Mutual Funds in India)
AMFI is a nodal association of mutual funds across India. AMFI provides useful knowledge and insights regarding mutual funds and investments. It is an autonomous body formed by fund houses and asset management companies (AMC) in India. If any investors have concerns regarding their investments and the fund house or AMC is not responding properly, then AMFI is their next stop. AMFI is a non-profit government organization and regulated directly by SEBI.
AMFI members are:
- Aditya Birla Sun Life AMC Limited
- Axis Asset Management Company Ltd.
- Baroda Asset Management India Limited
- BNP Paribas Asset Management India Private Limited
- BOI AXA Investment Managers Private Limited
- Canara Robeco Asset Management Company Limited
- DSP Investment Managers Private Limited
- Edelweiss Asset Management Limited
- Franklin Templeton Asset Management (India) Private Limited
- HDFC Asset Management Company Limited
- HSBC Asset Management (India) Private Ltd.
- IDBI Asset Management Ltd.
- IDFC Asset Management Company Limited
- IIFCL Asset Management Co. Ltd.
- IIFL Asset Management Ltd.
- IL&FS Infra Asset Management
- Indiabulls Asset Management Company Ltd.
- Invesco Asset Management (India) Private Limited
- ITI Asset Management Limited
- JM Financial Asset Management Limited
- Kotak Mahindra Asset Management Company Limited
- L&T Investment Management Limited
- LIC Mutual Fund Asset Management Limited
- Mahindra Manulife Investment Management Pvt. Ltd.
- Mirae Asset Global Investments (India) Pvt. Ltd.
- Motilal Oswal Asset Management Company Limited
- Navi AMC Limited
- Nippon Life India Asset Management Limited
- NJ Asset Management Private Limited
- PGIM India Asset Management Private Limited
- PPFAS Asset Management Pvt. Ltd.
- Quant Money Managers Limited
- Quantum Asset Management Company Private Limited
- Samco Asset Management Private Limited
- SBI Funds Management Private Ltd.
- Shriram Asset Management Co. Ltd.
- Sundaram Asset Management Company Limited
- Tata Asset Management Limited
- Taurus Asser Management Company Limited
- Trust Asset Management Private Limited
- Union Asset Management Company Private Limited
- UTI Asset Management Company Ltd.
- Whiteoak Capital Asset Management Limited
Mutual fund schemes in India
There are many schemes are available for investment in mutual funds in India. Here we are trying to simplify it for the understanding of our viewers. However please note that different mutual fund schemes should clearly follow the scheme objective as mentioned in their Key Information Memorandum (KIM).
Before investing in any schemes please contact your financial advisor or an important key person of the asset management company.
Mutual Funds: Types, Categories, and Excellency
On the basis of tenure there are 3 main schemes:
- Open-ended funds
- Close-ended funds
- Interval funds
We have bifurcated all the schemes into:
- Equity fund
- Debt fund
- Hybrid fund
- Index fund
- Situational fund
Mutual Fund: The excellent financial instrument
If we compare the mutual funds with other financial securities then our research suggests that mutual funds provide complete flexibility to their investors. Whether it is investment tenure, lock-in period (close-ended funds), inflation-adjusted returns, or risk factors, mutual funds are at their best! Among many reasons one of the important advantages of mutual funds is they provide a vast range of funds. Although it is said that “Mutual fund investments are subject to market risk, read all scheme related documents carefully”, investors can assess their risk-adjusted returns by reading asset management companies’ important concern documents. We will cover briefly about this concern in coming articles.
Mutual Funds Sahi Hai Campaign
The Association of Mutual Funds in India (AMFI) is a non-profit organization incorporated on August 22, 1995, for the protection and promotion of mutual funds and their investors. AMFI’s key objective is to define and maintain high ethical and professional standards in all areas of operation of the mutual fund industry.
Mutual funds Sahi hai is a unique and effective campaign advertised under AMFI guidance and ownership itself for the awareness of the investors through print media, digital media, and all other necessary ways to reach the mutual fund investors. We all have witnessed many celebrities have been signed up by AMFI nowadays like Sachin Tendulkar, MS Dhoni, Rohit Sharma, etc., and many others to support this campaign for the mutual industry. An example of one of a famous campaign is “Risk ki tayyari”.
Online Investment in Mutual Funds
In today’s competitive business world technology has played a huge role in investment patterns. Nowadays physical forms are not necessary to invest in mutual funds. All the fund houses are providing online facilities to their investors to invest online.
Mutual Funds Investment – Online investments
Here is the list of entities providing services for online mutual fund purchases:
- Mutual fund companies / Fund house
All asset management companies come into this category.
- Financial Advisor / Brokers
- Various brokerage houses & online registered applications.
Some of the Top Performing are:
- Angel One
- Kotak Securities
- HDFC Securities
- ICICI Direct
- Motilal Oswal
- IIFL / India Infoline
- National level distributors/brokers like:
- NJ India Invest Pvt Ltd
- Prudent Corporate Advisory Services Ltd
About India’s Top 10 Performing Equity Mutual Funds
As mentioned above in types of mutual funds, here we mainly focus on equity mutual funds type. Equity mutual funds are divided into below categories:
- Small cap funds
- Midcap funds
- Large cap funds
- Multi cap funds
- Large and midcap funds
- ELSS funds / Tax saver funds
- Focused funds
- Value funds
- Contra funds
- Dividend yield funds
- Sectoral funds and thematic funds
- Fund of funds
Top 10 Performing Equity Small Cap Funds for 2022
These mutual funds invest in stocks for capital appreciation and profit in the small cap category which is all the stocks except large and mid cap stocks (i.e. except the largest stocks of the first 250 companies listed in the Indian market) which are categorized based on market capitalization. Ideally, these funds are suitable for investors who are seeking very high returns with high risk.
List of the top 10 performing Small Cap funds:
- Nippon India Small Cap Fund – Growth
- Dsp Small Cap Fund – Regular Plan-Growth
- Kotak Small Cap Fund – Growth
- HDFC Small Cap Fund – Growth
- ICICI Prudential Smallcap Fund – Regular Plan-Growth
- Axis Small Cap Fund – Growth
- Tata Small Cap Fund – Regular Plan-Growth
- Franklin India Smaller Companies Fund – Growth
- Aditya Birla Sun Life Small Cap Fund – Regular Plan-Growth
- Tata Small Cap Fund – Regular – Growth
Top 10 Performing Mid Cap Equity Mutual Funds for 2022
These mutual funds are investing in stocks of mid cap categories which are 100 to 250 stocks based on the market capitalization (listed in the Indian market). It is said that invest in stocks that become large in the future in terms of market capitalization and profit. Potential mid cap funds can make this possible. However, history suggests that these stocks have higher risk and higher returns compared to large cap funds.
List of Top 10 Performing Mid Cap Equity Mutual Funds :
- SBI Magnum Midcap Fund – Regular Plan-Growth
- Nippon India Growth Fund – Growth
- UTI Mid Cap Fund – Growth
- Mirae Asset Midcap Fund – Regular Plan-Growth
- Motilal Oswal Midcap 30 fund – Growth
- Kotak Emerging Equity – Growth
- Axis Midcap Fund – Growth
- ICICI Prudential Midcap Fund – Growth
- Aditya Birla Sun Life Midcap Fund – Regula Plan-Growth
- HDFC Mid-Cap Opportunities Fund-Growth
Top 10 Performing Large Cap Equity Mutual Funds for 2022
Large cap funds invest in the 1st 100 stocks listed in the Indian market based on market capitalization. These stocks are anticipated to be less risky compared to the small and mid cap but also expected to be less potential compared to smaller stocks. Ideally, these funds are suitable for investors who want to take less risk compared to small and mid cap funds.
List of Top 10 Performing Large Cap Equity Mutual Funds :
- Canara Robeco Bluechip Equity Fund – Regular Plan-Growth
- SBI Blue Chip Fund – Regular Plan-Growth
- Nippon India Large Cap Fund – Growth
- Axis Bluechip Fund – Growth
- Mirae Asset Large Cap Fund – Regular – Growth
- ICICI Prudential Bluechip Fund – Growth
- Aditya Birla Sun Life Frontline Equity Fund – Regular Plan-Growth
- HDFC Top 100 Fund – Growth
- Kotak Bluechip Fund – Growth
- Franklin India Bluechip Fund – Growth
Top 10 Performing Multi Cap or Flexi Cap Mutual Funds for 2022
Multi cap funds primarily invest in all stocks listed in our Indian market (NSE & BSE). Nowadays many fund houses are introducing this category of funds to their portfolio due to the flexibility of picking a vast range of stocks by fund managers. Again as mentioned investors seeking to invest in these stocks must invest for the medium to long term with expected risk and instruction as per the KIM (Key Information Memorandum) provided by the fund houses.
List of Top 10 Performing Multi Cap Equity Mutual Funds :
- HDFC Multicap Fund – Regular Plan-Growth
- Axis Multicap Fund – Regular Plan-Growth
- Nippon India Multicap Fund – Growth
- Aditya Birla Sun Life Multi Cap Fund – Regular Plan-Growth
- ICICI Prudential Multicap Fund – Growth
- Invesco India Multicap Fund – Growth
- Quant Active Fund – Growth
- Baroda BNP Paribas Multi Cap Fund – Growth
- Sundaram Multi Cap Fund – Growth
Top 10 Performing Large and Mid Cap Equity Mutual Funds for 2022:
These stocks invest in 1st 250 stocks listed in the Indian market (NSE/BSE). These stocks are less risky compared to smaller stocks but smaller stocks may provide high returns potential also.
List of Top 10 Performing Large and Mid Cap Equity Mutual Funds :
- Canara Robeco Emerging Equities – Growth
- Mirae Asset Emerging Bluechip Fund – Growth
- ICICI Prudential Large & Mid Cap Fund- Growth
- Nippon India Vision Fund – Growth
- SBI Large & Midcap Fund – Regular Plan-Growth
- HDFC Large and Mid Cap Fund – Regular – Growth
- Aditya Birla Sun Life Equity Advantage Fund – Growth
- Franklin India Equity Advantage Fund – Growth
- IDFC Core Equity Fund – Regular Plan-Growth
- Axis Growth Opportunities Fund – Growth
India’s Top 10 Performing Tax Saving, ELSS Funds proving the Best Returns:
ELSS (Equity Linked Saving Schemes) are also called Mutual Fund Tax Saver Funds. These schemes invest primarily in stocks with a lock-in period of 3 years. These schemes provide tax-saving benefits under section 80C of the Income Tax act.
Investors who are seeking to save tax under section 80c with a view for higher returns compare to tax saver FDs, PPF (Public Provident Fund), KVP (Kishan Vikas Patra), etc should invest in these schemes. However, investors should also be prepared for possible moderate losses to their investments. These schemes have the least lock-in period among all the other 80C Tax saver instruments available in the Indian market.
List of Top 10 Performing Tax Saving, ELSS Funds :
- Quant Tax Plan-Growth
- IDFC Tax Advantage Fund – Regular Plan-Growth
- Canara Robeco Equity Tax Saver – Regular Plan-Growth
- Mirae Asset Tax Saver Fund – Regular Plan-Growth
- Axis Long Term Equity Fund – Growth
- Franklin India Taxshield Fund – Growth
- ICICI Prudential Long Term Equity Fund – Growth
- HDFC Tax Saver Fund – Growth
- SBI Long Term Equity Fund – Regular Plan-Growth
- DSP Tax Saver Fund – Regular Plan-Growth
Definition, Understanding, and Importance – Focused Fund and Top 10 Performing Best Focused Funds
Focused funds as the name suggest invest in a portfolio of 30 stocks maximum rather than holding a large variety of stocks. Here fund managers’ approach toward investment is concentrated. These funds are suitable for medium to long-term investment and with a possibility of moderate loss in the investment also.
Focused funds are important for investors looking for a concentrated approach with a view to enhancing capital and profit in the long run.
List of Top 10 Performing Focused Equity Mutual Funds for 2022 :
- SBI Focused Equity Fund – Growth
- ICICI Prudential Focused Equity Fund – Growth
- Nippon India Focused Equity Fund – Growth
- HDFC Focused 30 Fund – Growth
- Aditya Birla Sun Life Focused Equity Fund – Growth
- Franklin India Focused Equity Fund – Growth
- Motilal Oswal Focused 25 Fund – Growth
- Kotak Focused Equity Fund – Growth
- Tata Focused Equity Fund – Growth
- Mirae Asset Focused Fund – Growth
Definition, Meaning, Importance, Benefits – Value Funds and Top 10 Performing Value Funds:
Value funds are investing in stocks that are undervalued compared to peer category stocks. The basic assumptions behind the investment idea are picking up stocks which undervalued due to valid sustainable reasons and may perform higher returns once their valuation is at par. These funds are suitable for investors willing to take a high risk based on macro factors and selective bets for higher returns with a possibility of moderate to high loss in investments.
A list of Top 10 Performing Value Funds are:
- IDFC Sterling Value Fund – Growth
- Nippon India Value Fund – Growth
- Aditya Birla Sun Life Pure Value Fund – Growth
- L&T India Value Fund – Growth
- ICICI Prudential Value Discovery Fund – Growth
- UTI Value Opportunities Fund – Growth
- Templeton India Value Fund – Growth
- HDFC Capital Builder Value Fund – Growth
- Tata Equity PE Fund – Growth
Definition, Meaning, Performance Tracker – Contra Fund and Top Performing Contra Funds
A contra fund is mostly known or defined by its unique investment style of investing against the wind kind. The fund manager generally bets against the prevailing trends of the market and buys stocks that are depressed at that time or underperforming stocks.
A list of Top Performing Contra Funds are:
- SBI Contra Fund – Growth
- Kotak India EQ Contra Fund – Growth
- Invesco India Contra Fund – Growth
Definition and Snapshot – Top 10 Performing Equity: Thematic-dividend yield – Fund selector
Dividend yield funds follow a strategy of investing in to stocks that are generating higher dividend yields. However a company or stock can declare high dividends only in case of generating positive returns.
List of Top 10 Performing Equity: Thematic-dividend yield funds are:
- Sundaram Dividend Yield Fund – Growth
- UTI Dividend Yield Fund – Growth
- Aditya Birla Sun Life Dividend Yield Fund – Growth
- Templeton India Equity Income Fund – Growth
- IDBI Dividend Yield Fund – Growth
- HDFC Dividend Yield Fund – Growth
- ICICI Prudential Dividend Yield Equity Fund – Growth
- Tata Dividend Yield Fund – Growth
Difference between Sectoral and Thematic Funds and Top 10 Performing Sector Funds
These are mutual funds that invest in a particular sector or specific theme. Investors who are willing to take higher risks compared to diversified equity funds should invest in these funds. However, the returns and chances of loss are higher compared to diversified funds.
List of Top 10 Performing Sectoral and Thematic Funds :
- DSP Natural Resources and New Energy Fund – Growth
- Aditya Birla Sun Life India GenNext Fund – Growth
- Aditya Birla Sun Life Digital India Fund – Growth
- UTI MNC Fund – Growth
- Nippon India Power & Infra Fund – Growth
- Tata Ethical Fund – Regular Plan-Growth
- Aditya Birla Sun Life MNC Fund – Growth
- SBI Magnum Global Fund – Growth
- SBI Magnum COMMA Fund – Regular Plan-Growth
- SBI Banking & Financial Services Fund – Growth
Definition, Types, Advantages, Limitations, Performance – Top 10 Performing Fund of Funds
Fund of funds are also known as multiple fund manager investment schemes and in it, the investment is divided into many different mutual fund schemes. Hence this scheme invests in portfolios of many different portfolios of mutual fund schemes. The portfolio can invest in other mutual fund schemes of bonds, equity, and various types of securities.
List of Top 10 Performing Fund of Funds :
- ICICI Prudential Debt Management Fund (FOF) – Growth
- Aditya Birla Sun Life Active Debt Multi Manager FoF Scheme – Growth
- Nippon India Gold Savings Fund – Growth
- IDFC All Seasons Bond Fund – Regular Plan-Growth
- ICICI Prudential Income Optimizer Fund (FOF) – Growth
- Franklin India Life Stage Fund of Funds – 50s Plus Floating Rate Plan – G
- ICICI Prudential Asset Allocator Fund (FOF) – Growth
- Aditya Birla Sun Life Financial Planning FOF Conservative Plan-Growth
- HDFC Dynamic PE Ratio Fund of Funds – Plan A – Growth
- Aditya Birla Sun Life Asset Allocator FoF Scheme – Growth
- Aditya Birla Sun Life NASDAQ 100 FOF – Growth
- Edelweiss US Value Equity Offshore Fund – Growth
- DSP US Flexible Equity Fund – Growth
- Motilal Oswal Nasdaq 100 Fund of Fund (MOFN100FOF) – Growth
- ICICI Prudential Thematic Advantage Fund (FOF) – Growth
The above Funds’ lists are based on historical data. Past data does not contain any guarantee of future returns. Investors are advised to consult their financial advisor or fund house before investing in any funds.
Mutual fund investments are subject to market risk, read offer documents carefully before investing.
This article requires our Team to use primary sources to provide robust information for writing.
We have used various reports and data to educate our readers on a particular topic. We are also backed by various government and private data, much original research, online interviews, and reputed publishers wherever it is needed.
We have always followed certain specific standards and avoided biased content in this article.
- AMFI (Association of Mutual Funds in India) official website
- US Securities and Exchange Commissions’ official website
Mutual funds are powerful financial securities that have strong potential to generate long-term wealth for their investors. They provide schemes for all types of life goals with a conservative, moderate, and aggressive approach toward the risk-return ratio.
Indian Mutual fund industry has crossed Rs 37,56,683 crore of Asset Under Management (AUM) as of 31st March 2022. The AUM has grown from Rs 5.87 trillion as of 31st March 2012 to Rs 37.57 trillion as of 31st March 2022 i.e. is more than 6 times increase in tenure of 10 years.
Mutual fund SIP has crossed Rs 1,24,566 crore of FY 2021-22 from Rs. 43,921 crore of FY 2016-17.
The mutual fund industry is showing massive growth and we are witnessing a new high in AUM year on year. For any queries related to top mutual funds to invest please fill up your details.
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