Mutual fund performance is one of the most popular investment options in India, as it offers diversification, professional management, and convenience to investors. However, choosing the right mutual fund for your goals and risk profile can be a daunting task, as there are thousands of schemes available in the market. Moreover, the performance of mutual funds can vary depending on various factors, such as market conditions, fund strategy, fund manager, and fund size.
To help you make an informed decision, we have compiled a list of the top mutual fund performers in the third quarter of the financial year 2024 (Q3 FY24), based on data from CRISIL, a leading rating agency. We have also explained the basic mutual fund terms and jargon that you need to know before investing in any mutual fund. Let’s get started.
What is mutual fund performance?
A mutual fund is a pool of money collected from many investors and invested in various securities, such as stocks, bonds, money market instruments, and gold, by a professional fund manager. The fund manager tries to generate returns for the investors by following a certain investment objective and strategy. The investors get units of the mutual fund scheme in proportion to their investment amount. The value of each unit is called the net asset value (NAV), which changes daily based on the market value of the underlying securities.
What are the types of mutual funds?
Mutual funds can be classified into various types based on different criteria, such as asset class, investment objective, risk level, fund size, and fund structure. Here are some of the common types of mutual funds that you need to know.
Based on asset class
Mutual funds can be categorized based on the asset class they invest in, such as equity, debt, hybrid, or gold. Equity mutual funds invest predominantly in stocks of various companies across market capitalizations, such as large-cap, mid-cap, and small-cap. Debt mutual funds invest mainly in fixed-income securities, such as bonds, debentures, Treasury bills, and commercial papers. Hybrid mutual funds invest in a mix of equity and debt securities, such as balanced funds, dynamic asset allocation funds, and arbitrage funds. Gold mutual funds invest in gold or gold-related instruments, such as gold exchange-traded funds (ETFs) or gold mining companies.
Based on investment objective
Mutual funds can also be classified based on the investment objective they aim to achieve, such as growth, income, or capital protection. Growth mutual funds seek to provide long-term capital appreciation by investing in growth-oriented stocks, such as mid- and small-cap funds. Income mutual funds seek to provide regular income by investing in income-generating securities, such as dividend-paying stocks, corporate bonds, and government securities. Capital protection mutual funds seek to protect the principal amount by investing in low-risk securities, such as bank deposits, liquid funds, and debt funds.
Based on risk level
Mutual funds can also be categorized based on the level of risk they entail, such as low, moderate, or high. Low-risk mutual funds are suitable for conservative investors who want to preserve their capital and earn stable returns, such as liquid funds, ultra-short-duration funds, and overnight funds. Moderate-risk mutual funds are suitable for balanced investors who want to earn moderate returns with moderate risk, such as large-cap funds, corporate bond funds, and balanced advantage funds. High-risk mutual funds are suitable for aggressive investors who want to earn high returns with high risk, such as small-cap funds, sectoral funds, and thematic funds.
Based on fund size
Mutual funds can also be classified based on the fund size, which is the total value of the assets under management (AUM) of the fund. Fund size can indicate the popularity, liquidity, and scalability of the fund. Large-sized funds have more than Rs. 10,000 crore of AUM; medium-sized funds have between Rs. 2,000 crore and Rs. 10,000 crore of AUM; and small-sized funds have less than Rs. 2,000 crore of AUM.
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Based on fund structure
Mutual funds can also be categorized based on the fund structure, which is the way the fund is designed and operated. There are two main types of fund structures: open-ended and closed-ended. Open-ended mutual funds are the ones that allow investors to buy and sell units at any time, based on the prevailing NAV. Close-ended mutual funds are the ones that have a fixed maturity period and do not allow investors to buy and sell units after the initial offer period. Open-ended mutual funds are more flexible and liquid than closed-ended mutual funds.
What are the top mutual fund performers in Q3 FY24?
Now that you have understood the basic mutual fund terms and jargon, let us look at the top mutual fund performers in Q3 FY24, based on the CRISIL Mutual Fund Ranking report. The report ranks the mutual fund schemes across various categories and sub-categories based on various parameters, such as returns, risk, consistency, and portfolio quality. The report covers the performance of the schemes for the quarter ended December 31, 2023. Here are the top performers in some of the popular categories and sub-categories.
Large-cap funds
Large-cap funds are equity mutual funds that invest predominantly in the stocks of the top 100 companies by market capitalization. These companies are usually well-established, stable, and have strong financials. Large-cap funds are suitable for investors who want to earn steady returns with low volatility.
The top performer in the large-cap category in Q3 FY24 is ICICI Prudential Bluechip Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 47,929 crore and has given a return of 35.62% in the last year. The fund’s top five holdings are ICICI Bank, Reliance Industries, Larsen & Toubro, Infosys, and Axis Bank. The fund has an expense ratio of 0.85% and an exit load of 1% for redemption within one year.
Small-cap funds
Small-cap funds are equity mutual funds that invest predominantly in the stocks of companies that are ranked from 251st onwards by market capitalization. These companies are usually emerging, innovative, and have high growth potential. Small-cap funds are suitable for investors who want to earn high returns with high risk.
The top performer in the small cap category in Q3 FY24 is Nippon India Small Cap Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 43,816 crore and has given a return of 59.91% in the last year. The fund’s top five holdings are TI Financial Holdings, HDFC Bank, KPIT Engineering, Apar Industries, and Bharat Heavy Electricals. The fund has an expense ratio of 1.53% and an exit load of 1% for redemption within one year.
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Large and mid-cap funds
Large and mid-cap funds are equity mutual funds that invest in a mix of large-cap and mid-cap stocks. These funds aim to capture the best of both worlds, i.e., the stability of large-cap stocks and the growth potential of mid-cap stocks. Large and mid-cap funds are suitable for investors who want to earn moderate to high returns with moderate to high risk.
The top performer in the large and midcap category in Q3 FY24 is Mirae Asset Large and Midcap Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 6,791 crore and has given a return of 41.76% in the last year. The fund’s top five holdings are HDFC Bank, ICICI Bank, Infosys, Reliance Industries, and Axis Bank. The fund has an expense ratio of 0.98% and an exit load of 1% for redemption within one year.
What are the best mutual funds to invest in in 2024?
While the past performance of the mutual funds can give us some idea about their track record and consistency, it does not guarantee their future performance. Therefore, it is important to consider other factors, such as your investment objective, risk profile, time horizon, and cost, before investing in any mutual fund. Moreover, you should diversify your portfolio across different asset classes, categories, and schemes to reduce your overall risk and enhance your returns.
To help you choose the best mutual funds to invest in 2024, we have curated a list of some of the top-rated mutual funds by Groww, a leading online platform for mutual fund investment. Groww rates the mutual funds based on various parameters, such as returns, risk, quality, and popularity. Here are some of the best mutual funds to invest in 2024, according to Groww.
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The best equity mutual funds
Equity mutual funds are mutual funds that invest predominantly in the stocks of various companies. These funds can offer higher returns than other asset classes in the long term, but they also carry higher risk and volatility. Equity mutual funds are suitable for investors who have a high-risk appetite and a long-term investment horizon.
Some of the best equity mutual funds to invest in 2024 are:
Quant Small Cap Fund: This fund invests in small-cap stocks with high growth potential. The fund has given a return of 49.32% in the last year and has a Groww rating of 5 stars.
The best debt mutual funds
Debt mutual funds are mutual funds that invest predominantly in fixed-income securities, such as bonds, debentures, Treasury bills, and commercial papers. These funds are suitable for investors who want to preserve their capital and earn stable returns with lower risk than equity funds. Debt mutual funds can also be used to balance the portfolio and reduce overall volatility.
The best debt mutual funds in Q3 FY24 are based on the CRISIL Mutual Fund Ranking report. The report ranks the mutual fund schemes across various sub-categories, such as low duration, medium duration, dynamic bond, credit risk, etc. Here are the top performers in some of the popular sub-categories.
Low-duration funds
Low-duration funds are debt mutual funds that invest in securities with a maturity of 6 to 12 months. These funds are suitable for investors who want to park their surplus funds for a short period of time and earn better returns than bank deposits. Low-duration funds have low interest rate risk and moderate credit risk.
The top performer in the low duration sub-category in Q3 FY24 is Sundaram Low Duration Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 417 crore and has given a return of 7.4% in the last year. The fund’s top five holdings are HDFC Bank, ICICI Bank, Axis Bank, State Bank of India, and Reliance Industries. The fund has an expense ratio of 0.41% and an exit load of 0.5% for redemption within 90 days.
Medium-duration funds
Medium-duration funds are debt mutual funds that invest in securities with a maturity of 2 to 4 years. These funds are suitable for investors who have a medium-term investment horizon and can tolerate some fluctuations in returns. Medium-duration funds have moderate interest rate risk and credit risk.
The top performer in the medium duration sub-category in Q3 FY24 is Kotak Medium Term Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 6,791 crore and has given a return of 8.82% in the last year. The fund’s top five holdings are HDFC Bank, ICICI Bank, Reliance Industries, Larsen & Toubro, and Infosys. The fund has an expense ratio of 0.63% and an exit load of 0.5% for redemption within 1 year.
Dynamic bond funds
Dynamic bond funds are debt mutual funds that invest in securities across various maturities and durations, depending on the interest rate outlook. These funds are suitable for investors who want to benefit from the changing interest rate scenario and have a flexible investment strategy. Dynamic bond funds have high interest rate risk and low credit risk.
The top performer in the dynamic bond sub-category in Q3 FY24 is the ICICI Prudential All Seasons Bond Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 11,621 crore and has given a return of 8.6% in the last year. The fund’s top five holdings are the Government of India, Reliance Industries, HDFC Bank, ICICI Bank, and Axis Bank. The fund has an expense ratio of 0.6% and an exit load of 0.5% for redemption within one year.
The best hybrid mutual funds
Hybrid mutual funds are mutual funds that invest in a mix of asset classes, such as equity, debt, and gold. These funds aim to offer the best of both worlds, i.e., the growth potential of equity and the stability of debt. Hybrid mutual funds are suitable for investors who want to diversify their portfolio and have a balanced risk-return profile.
The best hybrid mutual funds in Q3 FY24 are based on the CRISIL Mutual Fund Ranking report. The report ranks the mutual fund schemes across various sub-categories, such as aggressive hybrid, conservative hybrid, multi-asset, etc. Here are the top performers in some of the popular sub-categories.
Aggressive hybrid funds
Aggressive hybrid funds are hybrid mutual funds that invest 65% to 80% of their assets in equity and the rest in debt. These investment vehicles cater to individuals with a strong appetite for risk and a commitment to long-term investing. Aggressive hybrid funds have high equity risk and moderate debt risk.
The top performer in the aggressive hybrid sub-category in Q3 FY24 is Quant Absolute Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 1,546 crore and has given a return of 33.7% in the last year. The fund’s top five holdings are HDFC Bank, Reliance Industries, ICICI Bank, Infosys, and Axis Bank. The fund has an expense ratio of 0.75% and an exit load of 1% for redemption within 1 year.
Conservative hybrid funds
Conservative hybrid funds are hybrid mutual funds that invest 10% to 25% of their assets in equity and the rest in debt. These funds are suitable for investors who have a low-risk appetite and a medium-term investment horizon. Conservative hybrid funds have low equity risk and high debt risk.
The top performer in the conservative hybrid sub-category in Q3 FY24 is the SBI Conservative Hybrid Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 9,277 crore and has given a return of 14.4% in the last year. The fund’s top five holdings are the Government of India, HDFC Bank, ICICI Bank, Reliance Industries, and Axis Bank. The fund has an expense ratio of 0.64% and an exit load of 0.5% for redemption within 1 year.
Multi-asset funds
Multi-asset funds are hybrid mutual funds that invest in at least three asset classes, such as equity, debt, gold, and international equities. These funds are suitable for investors who want to have a diversified portfolio with exposure to various markets and sectors. Multi-asset funds have moderate to high risk, depending on the asset allocation.
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The top performer in the multi-asset sub-category in Q3 FY24 is Quant Multi-Asset Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 1,288 crore and has given a return of 36.8% in the last year. The fund’s top five holdings are HDFC Bank, Reliance Industries, ICICI Bank, Infosys, and Axis Bank. The fund has an expense ratio of 0.7% and an exit load of 1% for redemption within one year.
The best gold mutual funds
Gold mutual funds are mutual funds that invest in gold or gold-related instruments, such as gold exchange-traded funds (ETFs) or gold mining companies. These funds are suitable for investors who want to hedge their portfolio against inflation and currency fluctuations. Gold mutual funds have a low correlation with other asset classes and can act as a safe haven during market turmoil.
The best gold mutual funds in Q3 FY24 are based on the CRISIL Mutual Fund Ranking report. The report ranks the mutual fund schemes that invest in gold ETFs, which track the domestic price of gold. Here are the top performers in the gold category:.
Gold funds
Gold funds are the mutual funds that invest in gold ETFs, which in turn invest in physical gold. These funds offer the convenience of investing in gold without the hassle of storing and maintaining it. Gold funds have a low expense ratio and high liquidity.
The top performer in the gold category in Q3 FY24 is Axis Gold Fund, which has been ranked number one by CRISIL. The fund has an AUM of Rs. 375 crore and has given a return of 10.61% in the last year. The fund’s top holding is Axis Gold ETF, which has an expense ratio of 0.2% and tracks the domestic price of gold. The fund has an expense ratio of 0.17% and an exit load of 1% for redemption within 1 year.
Conclusion
Mutual funds are a great way to invest your money and achieve your financial goals. However, you need to be careful and smart while choosing the right mutual fund for your needs and preferences. You should consider various factors, such as your investment objective, risk profile, time horizon, cost, and performance, before investing in any mutual fund. You should also diversify your portfolio across different asset classes, categories, and schemes to reduce your overall risk and enhance your returns.
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FAQs
Q: What is the source of data for the top mutual fund performers in Q3 FY24?
Ans. The source of data for the top mutual fund performers in Q3 FY24 is the CRISIL Mutual Fund Ranking Report. This report evaluates mutual fund schemes across various categories and sub-categories, considering factors such as returns, risk, consistency, and portfolio quality. It covers the performance of schemes for the quarter ended December 31, 2023.
Q: What benefits does investing in mutual funds offer?
Ans. Investing in mutual funds offers several benefits:
Diversification: Mutual funds enable investment in a diversified basket of securities across different asset classes, categories, and sectors, reducing overall risk and potentially enhancing returns.
Professional Management: Qualified and experienced fund managers manage mutual funds, conducting research and selecting the best securities aligned with the fund’s objectives and strategy.
Convenience: Mutual funds are easily accessible online through various platforms and intermediaries, allowing for seamless buying, selling, and monitoring.
Affordability: With low minimum investment requirements, mutual funds are accessible to investors of all types. Additionally, economies of scale help distribute the fund’s expenses among investors.
Q: How can I select the best mutual fund for my needs and preferences?
Ans. Choosing the best mutual fund involves considering various factors.
Investment Objective: Define your investment goals, such as capital appreciation, income generation, or capital protection.
Risk Profile: Understand your risk appetite and tolerance to determine the level of risk you’re comfortable with.
Time Horizon: Decide on your investment duration, considering different mutual funds’ investment horizons and exit loads.
Costs: Be aware of expenses like the expense ratio, exit load, transaction charges, and taxes associated with mutual fund investments. Compare the performance, returns, and taxation of different funds on platforms like ET Money2 for informed decision-making.
Q: How do I invest in mutual funds online?
Ans. Investing in mutual funds online is simple.
Choose a platform: Select a suitable online platform like Groww3, ET Money2, Zerodha Coin4, etc., based on features and reviews.
Complete KYC: Complete the know-your-customer (KYC) process by providing necessary documents and details online or offline.
Select Fund: Browse and choose a fund matching your investment objectives, risk profile, time horizon, and cost. Utilize filters, ratings, and recommendations for assistance.
Make Payment: Pay for the selected fund through net banking, UPI, debit card, etc. Receive confirmation upon successful payment.
Track and Monitor: Monitor your investment through the platform’s dashboard, accessing NAV, returns, portfolios, and transactions. Receive regular statements and reports for updates.
