1. HDFC Mid-Cap Opportunities Fund
Overview
HDFC Mid-Cap Opportunities Fund is a mid-cap fund that has 93.21% investment in Indian equities, of which 52.58% is in mid-cap stocks, 5.57% in large-cap stocks, and 18.09% in small-cap stocks. It is most suitable for people looking to stay invested for 3-4 years and seeking high returns, but it is important to note that this is an extremely risky fund.
Performance
The fund has shown impressive performance over the past year with a return of 49.98%. This makes it one of the top-performing mid-cap funds in its category.
Suitability
This fund is ideal for investors who are not risk-averse and are looking for substantial returns over a medium-term investment horizon. It is particularly suitable for those who can withstand market volatility and are aiming for high growth.
2. Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund is a flexi cap fund with a 70.63% investment in domestic equities. Of that, 48.07% is in large caps, 5.8% in midcaps, and 7.03% in small cap stocks. It also has a 0.31% investment in debt, with 0.01% in government bonds and the remaining 0.3% in low-risk securities.
Fund Overview
| Metric | Value |
| AUM | ₹63,934 Crs |
| Minimum Investment | ₹1000 |
| Expense Ratio | 0.62% |
Performance
The fund has shown impressive returns over the years, making it a top choice for investors. The annual return stands at 24.57%, with a 3-year return of 19.01% and a 5-year return of 15.70%.
Investment Strategy
The fund follows a diversified investment strategy, allocating assets across large, mid, and small cap stocks. This approach helps in balancing risk and reward, making it suitable for investors with a moderate risk appetite.
3. ICICI Pru Bluechip Fund
Overview
ICICI Pru Bluechip Fund is suitable for investors who want to remain invested in equity for the next five years but can take moderate to high risk. It has a 91.39% investment in Indian stocks, of which a majority 81.37% is in large caps, 4.85% in midcaps, and the remaining in small caps. 0.47% of the investment is in debt, mostly in government securities.
Minimum Investment Amount
The minimum amount required to invest in ICICI Prudential Bluechip Fund via lump sum is ₹100 and via SIP is ₹100.
Fund Performance
The ICICI Prudential Bluechip Fund has given 20.36% annualized returns in the past three years and 18.42% in the last 5 years.
| Time Period | Annualized Returns |
| 1 Year | 37.5% |
| 3 Years | 20.36% |
| 5 Years | 18.42% |
Asset Under Management (AUM)
The fund has an AUM of ₹54,904 Crores.
4. HDFC Flexi Cap Fund
Overview
HDFC Flexi Cap Fund is a flexicap fund with 88.67% investment in domestic equities, of which 62.54% is in large caps. The fund also has 6.2% of its holdings in midcaps and 3.65% in small caps. This high-risk fund is suitable for investors seeking high returns over a five-year period.
Performance
The fund has shown impressive performance over the years. Here is a snapshot of its recent returns:
| Period | Return (%) |
| 1 Year | 32.64 |
| 3 Years | 22.15 |
| 5 Years | 20.21 |
Investment Strategy
The fund primarily invests in large-cap stocks, which constitute the majority of its portfolio. It also includes a smaller proportion of mid-cap and small-cap stocks to diversify risk and enhance potential returns. The fund’s strategy aims to balance risk and reward, making it a compelling choice for long-term investors.
5. Nippon India Small Cap Fund
Overview
Nippon India Small Cap is one of the best performing small cap funds in the Indian mutual fund space. It has a 96.42% investment in equities of which 55.41% is in small cap stocks. The fund holds 9.86% shares in midcap stocks and 5.83% in large caps. This is a fund that is extremely risky, given its portfolio, but it also has the possibility of giving very high returns.
Performance
| Time Period | Returns |
| 1 Year | 33.99% |
| 3 Years | 26.36% |
| 5 Years | 20.74% |
Risk Factors
Given its high exposure to small cap stocks, the Nippon India Small Cap Fund is considered extremely risky. Investors should be prepared for significant volatility and potential losses in the short term.
Investment Strategy
The fund primarily focuses on small cap stocks but also diversifies into midcap and large cap stocks to balance the risk. This strategy aims to capture high growth potential while mitigating some risks through diversification.
6. HDFC Balanced Advantage Fund
HDFC Balanced Advantage Fund is a high performing hybrid mutual fund which has an equity exposure of 68.28%, of which 42.28% is in large cap stocks, 8.27% in small cap stocks and the remaining in midcaps. 28.63% of the fund’s investment is in debt of which a lion’s share is in government securities and 11.79% in low risk securities.
Performance
The fund has shown impressive returns over the years, making it a reliable choice for investors looking for balanced exposure to both equity and debt.
Asset Allocation
The fund’s dynamic asset allocation strategy allows it to adjust its equity and debt exposure based on market conditions, providing a balanced risk-reward ratio.
7. ICICI Prudential Equity & Debt Fund
Overview
ICICI Prudential Equity & Debt Fund is a balanced fund that strategically allocates its investments between equities and debt. This fund has 71.65% investment in equities, with 53.74% in large caps, 8.07% in midcaps, and a small share in small caps. About 17.92% of the fund is invested in debt, primarily in government securities.
Performance
The fund aims to provide long-term capital appreciation and income by investing in a mix of equity and debt instruments. This balanced approach helps in managing risk while aiming for stable returns.
Investment Strategy
The fund’s strategy involves a diversified portfolio with a significant portion in large-cap stocks for stability and growth, while the debt portion ensures steady income. This makes it suitable for investors looking for a balanced risk-reward ratio.
Suitability
ICICI Prudential Equity & Debt Fund is ideal for investors seeking a mix of growth and income. The fund’s allocation in both equity and debt instruments makes it a versatile choice for various market conditions.
8. ICICI Prudential Corporate Bond Fund
Overview
ICICI Prudential Corporate Bond Fund is a debt-oriented fund with 94.29% investment in debt. This fund is best for investors looking for stable returns for the long term.
Investment Portfolio
The fund allocates 71.85% of its assets to low-risk securities and the remaining portion to government bonds.
Performance
The fund has shown consistent performance, making it a reliable choice for conservative investors.
9. ICICI Prudential Short Term Fund
Overview
ICICI Prudential Short Term Fund is 88.95% invested in debt, of which 54% is in low-risk securities and the remaining in government bonds. This is a good fund for people looking to park their money for up to three years. It serves as a fine alternative to fixed deposits.
Performance
The fund has shown consistent performance over the years, making it a reliable choice for conservative investors. The returns are competitive when compared to other short-term investment options.
Investment Details
| Details | Information |
| Minimum Investment | ₹1000 |
| Assets Under Management (AUM) | ₹12,586 Crs |
| Expense Ratio | 0.61% |
| Risk Level | Low to Moderate |
Suitability
This fund is suitable for investors with a low to moderate risk appetite looking for short-term investment options. It is particularly beneficial for those who prefer a safer investment avenue compared to equity funds.
10. LIC MF Gold ETF FoF
Overview
LIC MF Gold ETF FoF is a high-risk gold fund that has generated returns of more than 8.3% over the last year. It has assets under management in excess of Rs. 27,400 crore. This fund is suitable for investors looking to diversify their portfolio with commodities.
Performance
The fund has shown consistent performance with a one-year return of 8.36%. This makes it an attractive option for those looking to invest in gold as a hedge against market volatility.
| Metric | Value |
| 1-Year Return | 8.36% |
| Assets Under Management | Rs. 27,400 crore |
| Risk Level | High |
Investment Strategy
The fund primarily invests in gold ETFs, providing investors with exposure to the gold market without the need to directly purchase physical gold. This makes it a convenient option for those looking to invest in gold.
Suitability
This fund is ideal for investors who are looking to diversify their portfolio with a commodity that has historically been a safe haven during economic downturns. However, due to its high-risk nature, it is recommended for those with a higher risk tolerance.
Conclusion
Investing in mutual funds through the SIP route in 2024 offers a promising avenue for wealth creation and financial stability. By diversifying across equity, hybrid, debt, and commodity funds, investors can mitigate risks while aiming for substantial returns. The mutual funds listed in this article have been carefully selected based on their performance over the past year, ensuring that they are well-suited for a variety of investment goals and risk appetites. As always, it’s crucial to consider your financial objectives, risk tolerance, and investment horizon before making any investment decisions. With the right approach, mutual funds can be a powerful tool to achieve your financial aspirations in 2024 and beyond.
Frequently Asked Questions
What factors should I consider before investing in mutual funds for SIP in 2024?
Before investing in mutual funds for SIP in 2024, consider factors such as past performance, fund manager’s track record, expense ratio, and the fund’s investment strategy.
How do mutual funds diversify my investments?
Mutual funds diversify your investments by pooling money from multiple investors to invest in a basket of stocks, bonds, and other securities across various industries, themes, and sectors.
What is the advantage of investing in mutual funds via SIP?
Investing in mutual funds via SIP allows you to invest systematically over time, reducing the impact of market volatility and helping you accumulate wealth through disciplined investing.
Are the top mutual funds for SIP in 2024 guaranteed to provide high returns?
No, while the listed mutual funds have shown strong performance, there are no guarantees of high returns. Market conditions and other factors can affect fund performance.
Can the list of top mutual funds to invest in change over time?
Yes, the list of top mutual funds can change based on various factors such as market performance, changes in fund management, and shifts in investment strategies.
What is a Flexi Cap Fund?
A Flexi Cap Fund is a type of mutual fund that invests in companies of various market capitalizations – large-cap, mid-cap, and small-cap – providing flexibility and diversification in the investment portfolio.
