Unveiling the champions: Discovering the best performing mutual funds of the year
Analyse the strategies, performance metrics, and suitability of top-performing funds to navigate your investment journey.
In the ever-evolving financial landscape, identifying high-performing investment opportunities remains a paramount concern for investors. Mutual funds, with their inherent diversification and professional management, offer a compelling solution. As the year draws to a close, a significant question arises: which mutual funds have emerged as the true champions, delivering stellar returns to their investors?
This article embarks on a journey to uncover the best performing mutual funds of the year, analysing their strategies, performance metrics, and suitability for different investor profiles. By delving into the data and insights, we aim to equip you with the knowledge needed to make informed investment decisions and chart a course towards financial success.
What is Mutual Fund?
Mutual fund investment refers to the process of pooling money from various investors to buy a collection of stocks, bonds, or other securities. Managed by professionals, these funds aim to provide diversification and minimise risk while seeking returns.
What is High-return mutual funds?
High-return mutual funds are a type of mutual fund that aims to generate significantly higher returns than the average mutual fund. They achieve this by investing in a portfolio of assets with high growth potential, such as Small-Cap stocks, emerging market equities, or alternative assets.
Here are the top performing mutual fund:
- Nippon India Small Cap Fund
The Nippon India Small Cap Fund is an equity mutual fund that invests primarily in small-cap companies. It has a large asset under management (AUM) of Rs 41,019 crore and a minimum investment of only Rs 100. Currently, the fund's value stands at Rs 14.96 lakh and offers an impressive return of +37.56 per cent per annum. It boasts a low expense ratio of 0.71 per cent and has been in existence for over 10 years, demonstrating its stability and success. Overall, the Nippon India Small Cap Fund presents a compelling option for investors seeking high returns with exposure to the potentially lucrative world of small-cap companies.
- HDFC Small Cap Fund
The HDFC Small Cap Fund is an equity mutual fund that focuses on small-cap companies. It boasts a substantial AUM of Rs 25,409 crore and allows for minimum investments as low as Rs 100. Currently, the fund holds a value of Rs 13.25 lakh and delivers an attractive return of +32.34 per cent per annum. Its low expense ratio of 0.75 per cent and established history exceeding 10 years demonstrate its cost-effectiveness and longevity. Overall, the HDFC Small Cap Fund presents a solid investment opportunity for those seeking to capitalize on the potential of small-cap companies while enjoying a healthy return.
- ICICI Prudential Small cap Fund
The ICICI Prudential Small cap Fund is an equity fund that invests primarily in small-cap companies. It has an AUM of Rs 6,608 crore and a minimum investment of Rs 100. Currently, the fund's value is Rs 13.17 lakh and it offers a return of +32.08 per cent per annum. It has a low expense ratio of 0.73 per cent and has been in existence for over 10 years. This combination of strong performance, competitive fees, and a long track record makes the ICICI Prudential Small cap Fund a compelling option for investors seeking exposure to high-growth small-cap companies.
- Kotak Small Cap Fund
The Kotak Small Cap Fund stands out as a top performer in the small-cap category. With an impressive AUM of Rs 13,377 crore, it offers investors the potential for high growth while maintaining a low minimum investment of Rs 1000. Currently, the fund holds a value of Rs 13.04 lakh and delivers a consistent return of +31.69 per cent per annum. Furthermore, its competitive expense ratio of 0.44 per cent and long-standing presence exceeding 10 years demonstrate its commitment to cost-efficiency and stability. Overall, the Kotak Small Cap Fund presents a particularly attractive option for investors seeking to maximize their returns in the promising landscape of small-cap companies.
- DSP Small Cap Fund
The DSP Small Cap Fund offers a compelling proposition for investors seeking to tap into the high-growth potential of small-cap companies. With a substantial AUM of Rs 13,095 crore and a manageable minimum investment of Rs 500, it provides broad exposure to this dynamic segment of the market. Currently, the fund holds a value of Rs 12.88 lakh and delivers a respectable annual return of +31.16 per cent. Its long-standing presence exceeding 10 years coupled with a moderate expense ratio of 0.89 per cent signifies its stability and cost-effectiveness. For investors seeking a balance between risk and reward in the realm of small-cap investments, the DSP Small Cap Fund emerges as a viable contender.
Conclusion
Mutual funds have the ability to generate substantial returns to investors depending on asset allocation and asset selection. Investors can invest in high-return mutual funds to realise increased risk with the potential for large rewards, depending on their risk tolerance and investing goals. However, before making any investing selections, it is always prudent to consult with a financial professional, especially when contemplating high-return mutual funds. A financial adviser may assist you in determining if a high-return mutual fund is appropriate for your investment objectives and risk tolerance, and can propose alternative investing alternatives if required.
Disclaimer: The article is for informational purposes only and not an investment advice.