When the New Year comes, many people have a habit of identifying best performing mutual funds for investment. In this post, I will discuss 14 Best Mutual Funds to invest in 2020.
Mutual Funds are one of the best investment options for wealth creation if you remain invested for a long period. However, if you choose wrong mutual funds that do not match your investment goals and risk profile then it could be a recipe for disaster.
There are thousands of mutual funds available in the market today. Therefore, it is very difficult for any investor to select the best mutual funds out of these thousands of mutual funds.
Table of Contents
14 Best Mutual Funds to invest in 2020
To help you reach your financial goals, I have listed out 14 best mutual funds to invest in 2020. This post contains 14 best mutual funds from large-cap, large & midcap, multi-cap, focused, mid-cap, small-cap, and ELSS.
What are mutual funds?
A mutual fund is a pool of investment funds collected from multiple investors to purchase securities. A mutual fund is managed by a professional fund manager. Investors have a share in the gains or losses of the mutual fund.
Mutual funds are regulated by the Securities and Exchange Board of India (SEBI) to protect the interest of the investors. Therefore, you can consider them as a safe investment avenue.
Mutual funds are ideal investment options for each and every age group. All mutual funds have well-defined investment objectives.
You can select a fund scheme as per your financial objective and risk appetite and start your investment journey to achieve that objective.
Benefits of investing in mutual funds
The following are some of the benefits of investing in mutual funds.
1. Mutual funds are managed by professional fund managers.
2. The biggest advantage of investing in these funds is diversification.
3. You can invest in these funds with an amount as little as Rs.500/-.
4. These funds are considered liquid assets.
5. These funds are regulated by SEBI, and hence, they can be considered as a safe investment avenue.
6. Low-cost investment is also an interesting feature of these funds.
7. There are a variety of schemes to suit your investment objectives and risk profile.
8. Mutual funds offer a variety of investment and withdrawal options.
9. Mutual funds are quite easy to buy and easy to understand.
10. These funds are very transparent.
11. Mutual funds are an ideal investment option for long-term inflation-adjusted returns.
12. There are tax saving mutual funds, called ELSS. You can invest up to Rs.1.5 lakh in ELSS that are exempt under section 80C.
So, these are some of the benefits of investing in mutual funds. You should keep these benefits in mind while making any investment decisions. However, you should also keep in mind that investing in mutual funds is subject to market risks.
Methodology used in shortlisting 14 Best Mutual Funds to invest in 2020
These 14 Best Mutual Funds to invest in 2020 are shortlisted based on the following factors.
1. Mutual Fund schemes that have generated superior returns in the last 3, 5, 7 and 10 years are considered here.
2. All selected funds have AUM (Assets Under Management) of more than Rs. 1000 Cr. Higher AUM indicates that the scheme trusted by a large number of investors.
3. Funds that are rated as Rank-1, Rank-2, and Rank-3 by CRISIL. CRISIL is a global analytical company that provides ratings along with risk and policy advisory services. Rank1 is the highest rank.
4. Mutual funds schemes that are rated as 5 stars and 4 stars (Out of 5) by Value Research are considered here. Higher star rating is better.
5. I have selected these 14 Best Mutual Funds schemes from various mutual fund categories. Two schemes from each category like large-cap, large & midcap, multi-cap, focused, mid-cap, small-cap, and ELSS.
14 Best Mutual Funds to invest in 2020
Based on the above parameters, here is the list of 14 best mutual funds to invest in 2020 and beyond……
1. Axis Bluechip Fund
2. Mirae Asset Large Cap Fund
3. Mirae Asset Emerging Bluechip Fund
4. Canara Robeco Emerging Equities Fund
5. SBI Magnum Multicap Fund
6. Kotak Standard Multicap Fund
7. Axis Focused 25 Fund
8. SBI Focused Equity Fund
9. Kotak Emerging Equity Fund
10. DSP Midcap Fund
11. SBI Small Cap Fund
12. Axis Small Cap Fund
13. Axis Long Term Equity Fund
14. Mirae Asset Tax Saver Fund
Let’s now analyze these 14 best mutual funds category-wise.
Best Mutual Funds for 2020 (Large Cap)
Large-cap funds predominantly invest in large-cap stocks. Therefore, they are more suitable for conservative equity investors. Here, I have selected two best mutual funds from this category.
Axis Bluechip Fund – Regular Plan (Growth Option)
The scheme aims to generate long term capital growth by predominantly investing in large-cap stocks. This fund is suitable for long-term goals such as children’s education and their future, retirement etc. The scheme was launched on April 6, 2005.
Details & Performance of the scheme
| Scheme Name | Axis Bluechip Fund |
| Category | Large-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 31.61 |
| Assets (AUM) as on 30-Nov-2019 | 8749 Cr |
| Returns in 1 year | 18.12% |
| Returns in 3 years (Annualised) | 19.43% |
| Annualised returns in 5 years | 10.35% |
| Annualised returns in 7 years | 14.38% |
| Returns in 10 years (Annualised) | 12.12% |
| Returns since launch | 12.18% |
| Expense Ratio as on 30-Nov-2019 | 1.76% |
| 1 Lakh invested 1 year back grown to | 1.18 Lakh |
| 1 Lakh invested 3 years back grown to | 1.7 Lakh |
| One Lakh invested 5 years back grown to | 1.64 Lakh |
| 1 Lakh invested 7 years back grown to | 2.56 Lakh |
| 1 Lakh invested 10 years back grown to | 3.14 Lakh |
| Fund Manager since 23-Nov-2015 | Shreyash Devalkar |
| Website | www.axismf.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-1 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Axis Bluechip Fund www.axismf.com
Mirae Asset Large Cap Fund – Regular Plan (Growth Option)
The scheme aims to maximize long term capital appreciation by predominantly investing across large-cap stocks. This fund is suitable for long-term goals that need a wealth creation plan. The scheme was launched on April 4, 2008.
Details & Performance of the scheme
| Scheme Name | Mirae Asset Large Cap Fund |
| Category | Large-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 53.5670 |
| Assets (AUM) as on 30-Nov-2019 | 16519 Cr |
| Returns in 1 year | 11.71% |
| Returns in 3 years (Annualised) | 14.75% |
| Annualised returns in 5 years | 11.61% |
| Annualised returns in 7 years | 16.00% |
| Returns in 10 years (Annualised) | 14.02% |
| Returns since launch | 15.33% |
| Expense Ratio as on 30-Nov-2019 | 1.68% |
| 1 Lakh invested 1 year back grown to | 1.12 Lakh |
| 1 Lakh invested 3 years back grown to | 1.51 Lakh |
| One Lakh invested 5 years back grown to | 1.73 Lakh |
| 1 Lakh invested 7 years back grown to | 2.83 Lakh |
| 1 Lakh invested 10 years back grown to | 3.71 Lakh |
| Fund Manager since 31-Jan-2019 | Gaurav Misra |
| Website | www.miraeassetmf.co.in |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Mirae Asset Large Cap Fund www.miraeassetmf.co.in
Best Mutual Funds for 2020 (Large & Mid-Cap)
Large & mid-cap funds invest in both large-cap and mid-cap stocks. Therefore, they are less risky than pure mid-cap schemes and small-cap schemes and suitable for not-so-aggressive investors. Here, I have shortlisted two best mutual funds from this category.
Mirae Asset Emerging Bluechip Fund – Regular Plan (Growth Option)
The scheme seeks to generate income and capital appreciation by investing in both large and mid-cap stocks. This fund is suitable for long-term goals that need an investment horizon of 5 years or above. The scheme was launched on July 9, 2010.
Details & Performance of the scheme
| Scheme Name | Mirae Asset Emerging Bluechip Fund |
| Category | Large & MidCap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 57.3910 |
| Assets (AUM) as on 30-Nov-2019 | 9229 Cr |
| Returns in 1 year | 14.98% |
| Returns in 3 years (Annualised) | 16.33% |
| Annualised returns in 5 years | 15.54% |
| Annualised returns in 7 years | 22.18% |
| Returns in 10 years (Annualised) | — |
| Returns since launch | 20.18% |
| Expense Ratio as on 30-Nov-2019 | 1.77% |
| 1 Lakh invested 1 year back grown to | 1.15 Lakh |
| 1 Lakh invested 3 years back grown to | 1.57 Lakh |
| One Lakh invested 5 years back grown to | 2.06 Lakh |
| 1 Lakh invested 7 years back grown to | 4.06 Lakh |
| 1 Lakh invested 10 years back grown to | — |
| Fund Manager since 31-Jan-2019 | Ankit Jain |
| Website | www.miraeassetmf.co.in |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-1 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Mirae Asset Emerging Bluechip Fund www.miraeassetmf.co.in
Canara Robeco Emerging Equities Fund – Regular Plan (Growth Option)
The scheme aims to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks. This fund is suitable for long-term goals and an investment horizon of 5 years or above. The scheme was launched on March 11, 2005.
Details & Performance of the scheme
| Scheme Name | Canara Robeco Emerging Equities Fund |
| Category | Large & MidCap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 96.42 |
| Assets (AUM) as on 31-Dec-2019 | 5339 Cr |
| Returns in 1 year | 8.92% |
| Returns in 3 years (Annualised) | 13.10% |
| Annualised returns in 5 years | 11.52% |
| Annualised returns in 7 years | 19.26% |
| Returns in 10 years (Annualised) | 17.57% |
| Returns since launch | 16.50% |
| Expense Ratio as on 30-Nov-2019 | 1.99% |
| 1 Lakh invested 1 year back grown to | 1.09 Lakh |
| 1 Lakh invested 3 years back grown to | 1.45 Lakh |
| One Lakh invested 5 years back grown to | 1.72 Lakh |
| 1 Lakh invested 7 years back grown to | 3.43 Lakh |
| 1 Lakh invested 10 years back grown to | 5.05 Lakh |
| Fund Manager since 05-Apr-2018 | Miyush Gandhi |
| Website | www.canararobeco.com |
| Value Research Rating | 4 Star |
| CRISIL Rating | Rank-3 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Canara Robeco Emerging Equities Fund www.canararobeco.com
Best Mutual Funds for 2020 (Multi Cap)
Multicap funds invest across large, mid and small-cap stocks. Therefore, they are less risky compared to pure mid-cap or small-cap schemes. They are suitable for not-so-aggressive investors. Here, I have selected two best mutual funds from this category.
SBI Magnum Multicap Fund – Regular Plan (Growth Option)
The scheme seeks to generate long term growth in the capital by investing across large, mid and small-cap stocks. This fund is suitable for long-term goals that need an investment horizon of 5 years or above. The scheme was launched on September 29, 2005.
Details & Performance of the scheme
| Scheme Name | SBI Magnum Multicap Fund |
| Category | Multi-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 50.8136 |
| Assets (AUM) as on 31-Dec-2019 | 8480 Cr |
| Returns in 1 year | 11.15% |
| Returns in 3 years (Annualised) | 12.08% |
| Annualised returns in 5 years | 10.69% |
| Annualised returns in 7 years | 15.06% |
| Returns in 10 years (Annualised) | 10.99% |
| Returns since launch | 12.05% |
| Expense Ratio as on 30-Nov-2019 | 1.85% |
| 1 Lakh invested 1 year back grown to | 1.11 Lakh |
| 1 Lakh invested 3 years back grown to | 1.41 Lakh |
| One Lakh invested 5 years back grown to | 1.66 Lakh |
| 1 Lakh invested 7 years back grown to | 2.67 Lakh |
| 1 Lakh invested 10 years back grown to | 2.84 Lakh |
| Fund Manager since 01-Feb-2017 | Anup Upadhyay |
| Website | www.sbimf.com |
| Value Research Rating | 4 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about SBI Magnum Multicap Fund www.sbimf.com
Kotak Standard Multicap Fund – Regular Plan (Growth Option)
The scheme aims to generate long term capital growth from a portfolio of equity and equity-related securities, generally focused on select few sectors. This fund is suitable for long-term capital gains. The scheme was launched on September 11, 2009.
Details & Performance of the scheme
| Scheme Name | Kotak Standard Multicap Fund |
| Category | Multi-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 37.2990 |
| Assets (AUM) as on 31-Dec-2019 | 29598 Cr |
| Returns in 1 year | 12.56% |
| Returns in 3 years (Annualised) | 13.67% |
| Annualised returns in 5 years | 10.89% |
| Annualised returns in 7 years | 15.63% |
| Returns in 10 years (Annualised) | 12.12% |
| Returns since launch | 13.21% |
| Expense Ratio as on 30-Nov-2019 | 1.63% |
| 1 Lakh invested 1 year back grown to | 1.13 Lakh |
| 1 Lakh invested 3 years back grown to | 1.47 Lakh |
| One Lakh invested 5 years back grown to | 1.68 Lakh |
| 1 Lakh invested 7 years back grown to | 2.76 Lakh |
| 1 Lakh invested 10 years back grown to | 3.46 Lakh |
| Fund Manager since 01-Aug-2012 | Harsha Upadhyaya |
| Website | www.kotakmutual.com |
| Value Research Rating | 4 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Kotak Standard Multicap Fund www.kotakmutual.com
Best Mutual Funds for 2020 (Focused)
Focused funds focus on the number of stocks (maximum 30) on any segment in the market across large, mid, small-cap and so on. Therefore, they are considered highly risky. They are recommended only to investors with higher risk appetite. Here, I have selected two best mutual funds from this category.
Axis Focused 25 Fund – Regular Plan (Growth Option)
The scheme seeks to generate long term capital growth by investing in a concentrated portfolio of a maximum of 25 stocks. This fund is suitable for long-term goals such as children’s education & their future, retirement etc. that need a wealth creation plan. The scheme was launched on June 29, 2012.
Details & Performance of the scheme
| Scheme Name | Axis Focused 25 Fund |
| Category | Focused |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 30.48 |
| Assets (AUM) as on 30-Nov-2019 | 8891 Cr |
| Returns in 1 year | 17.10% |
| Returns in 3 years (Annualised) | 18.18% |
| Annualised returns in 5 years | 12.59% |
| Annualised returns in 7 years | 14.47% |
| Returns in 10 years (Annualised) | — |
| Returns since launch | 15.95% |
| Expense Ratio as on 30-Nov-2019 | 1.89% |
| 1 Lakh invested 1 year back grown to | 1.17 Lakh |
| 1 Lakh invested 3 years back grown to | 1.65 Lakh |
| One Lakh invested 5 years back grown to | 1.81 Lakh |
| 1 Lakh invested 7 years back grown to | 2.58 Lakh |
| 1 Lakh invested 10 years back grown to | — |
| Fund Manager since 07-Jun-2016 | Jinesh Gopani |
| Website | www.axismf.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Axis Focused 25 Fund www.axismf.com
SBI Focused Equity Fund – Regular Plan (Growth Option)
The scheme aims to generate long-term capital appreciation by investing in a concentrated portfolio of equity and equity-related instruments. This fund is suitable for long-term goals that need a wealth creation plan. The scheme was launched on October 11, 2004.
Details & Performance of the scheme
| Scheme Name | SBI Focused Equity Fund |
| Category | Focused |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 152.0505 |
| Assets (AUM) as on 31-Dec-2019 | 6924 Cr |
| Returns in 1 year | 16.80% |
| Returns in 3 years (Annualised) | 16.47% |
| Annualised returns in 5 years | 11.12% |
| Annualised returns in 7 years | 13.64% |
| Returns in 10 years (Annualised) | 16.25% |
| Returns since launch | 19.54% |
| Expense Ratio as on 30-Nov-2019 | 1.93% |
| 1 Lakh invested 1 year back grown to | 1.17 Lakh |
| 1 Lakh invested 3 years back grown to | 1.58 Lakh |
| One Lakh invested 5 years back grown to | 1.69 Lakh |
| 1 Lakh invested 7 years back grown to | 2.45 Lakh |
| 1 Lakh invested 10 years back grown to | 4.51 Lakh |
| Fund Manager since 18-May-2009 | R Srinivasan |
| Website | www.sbimf.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about SBI Focused Equity Fund www.sbimf.com
Best Mutual Funds for 2020 (Mid Cap)
Mid-cap funds predominantly invest in mid-cap stocks. At times, they can be extremely volatile. Therefore, they are recommended only to investors with a very high-risk tolerance level. Also, they are suitable for an investment horizon of 7 years and above. Here, I have selected two best mutual funds from this category.
Kotak Emerging Equity Fund – Regular Plan (Growth Option)
The scheme seeks to generate long-term capital by investing predominantly in securities of midcap companies. You can invest in this fund if you have a very high-risk appetite and a long term horizon of 7 years or above. The scheme was launched on March 7, 2007.
Details & Performance of the scheme
| Scheme Name | Kotak Emerging Equity Fund |
| Category | Mid-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 70.7480 |
| Assets (AUM) as on 31-Dec-2019 | 5888 Cr |
| Returns in 1 year | 10.91% |
| Returns in 3 years (Annualised) | 10.45% |
| Annualised returns in 5 years | 10.53% |
| Annualised returns in 7 years | 16.22% |
| Returns in 10 years (Annualised) | 14.17% |
| Returns since launch | 11.61% |
| Expense Ratio as on 30-Nov-2019 | 1.86% |
| 1 Lakh invested 1 year back grown to | 1.11 Lakh |
| 1 Lakh invested 3 years back grown to | 1.35 Lakh |
| One Lakh invested 5 years back grown to | 1.65 Lakh |
| 1 Lakh invested 7 years back grown to | 2.86 Lakh |
| 1 Lakh invested 10 years back grown to | 3.76 Lakh |
| Fund Manager since 27-May-2010 | Pankaj Tibrewal |
| Website | www.kotakmutual.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Kotak Emerging Equity Fund www.kotakmutual.com
DSP Midcap Fund – Regular Plan (Growth Option)
The scheme seeks to generate long term capital appreciation from a portfolio of securities of mid-cap companies. Investors with a very high-risk appetite can invest in this fund for a long-term horizon of 7 years or above. The scheme was launched on November 14, 2006.
Details & Performance of the scheme
| Scheme Name | DSP Midcap Fund |
| Category | Mid-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 57.6940 |
| Assets (AUM) as on 31-Dec-2019 | 6957 Cr |
| Returns in 1 year | 11.63% |
| Returns in 3 years (Annualised) | 10.52% |
| Annualised returns in 5 years | 10.25% |
| Annualised returns in 7 years | 15.75% |
| Returns in 10 years (Annualised) | 14.29% |
| Returns since launch | 14.25% |
| Expense Ratio as on 30-Nov-2019 | 1.83% |
| 1 Lakh invested 1 year back grown to | 1.12 Lakh |
| 1 Lakh invested 3 years back grown to | 1.35 Lakh |
| One Lakh invested 5 years back grown to | 1.63 Lakh |
| 1 Lakh invested 7 years back grown to | 2.78 Lakh |
| 1 Lakh invested 10 years back grown to | 3.80 Lakh |
| Fund Manager since 16-Mar-2018 | Resham Jain |
| Website | www.dspim.com |
| Value Research Rating | 4 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about DSP Midcap Fund www.dspim.com
Best Mutual Funds for 2020 (Small Cap)
Small-cap funds predominantly invest in small-cap stocks. These schemes are extremely risky in the short term. But these funds have the potential to deliver superior returns over a long period. Therefore, they are recommended only to aggressive equity investors with an investment horizon of 7 years or above. Here, I have selected two best mutual funds from this category.
SBI Small Cap Fund – Regular Plan (Growth Option)
The scheme aims to provide investors with opportunities for long-term growth in the capital by investing in stocks of small-cap companies. Aggressive investors who have a very high-risk appetite can invest in this fund for a long term horizon of 7 years or above. The scheme was launched on September 9, 2009.
Details & Performance of the scheme
| Scheme Name | SBI Small Cap Fund |
| Category | Small-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 53.6247 |
| Assets (AUM) as on 31-Dec-2019 | 3156 Cr |
| Returns in 1 year | 7.57% |
| Returns in 3 years (Annualised) | 14.13% |
| Annualised returns in 5 years | 13.27% |
| Annualised returns in 7 years | 22.54% |
| Returns in 10 years (Annualised) | 17.32% |
| Returns since launch | 17.64% |
| Expense Ratio as on 30-Nov-2019 | 2.24% |
| 1 Lakh invested 1 year back grown to | 1.08 Lakh |
| 1 Lakh invested 3 years back grown to | 1.49 Lakh |
| One Lakh invested 5 years back grown to | 1.86 Lakh |
| 1 Lakh invested 7 years back grown to | 4.15 Lakh |
| 1 Lakh invested 10 years back grown to | 4.94 Lakh |
| Fund Manager since 16-Nov-2013 | R Srinivasan |
| Website | www.sbimf.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-2 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about SBI Small Cap Fund www.sbimf.com
Axis Small Cap Fund – Regular Plan (Growth Option)
The scheme aims to generate long-term growth in the capital by predominantly investing in small-cap stocks. This fund is ideal for aggressive investors who have a very high-risk appetite for an investment horizon of 7 years or above. The scheme was launched on November 29, 2013.
Details & Performance of the scheme
| Scheme Name | Axis Small Cap Fund |
| Category | Small-Cap |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 32.36 |
| Assets (AUM) as on 30-Nov-2019 | 1366 Cr |
| Returns in 1 year | 22.02% |
| Returns in 3 years (Annualised) | 14.34% |
| Annualised returns in 5 years | 11.22% |
| Annualised returns in 7 years | — |
| Returns in 10 years (Annualised) | — |
| Returns since launch | 21.18% |
| Expense Ratio as on 30-Nov-2019 | 2.07% |
| 1 Lakh invested 1 year back grown to | 1.22 Lakh |
| 1 Lakh invested 3 years back grown to | 1.49 Lakh |
| One Lakh invested 5 years back grown to | 1.70 Lakh |
| 1 Lakh invested 7 years back grown to | — |
| 1 Lakh invested 10 years back grown to | — |
| Fund Manager since 23-Nov-2015 | Anupam Tiwari |
| Website | www.axismf.com |
| Value Research Rating | 4 Star |
| CRISIL Rating | Rank-1 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Axis Small Cap Fund www.axismf.com
Best Mutual Funds for 2020 (ELSS)
ELSS (Equity Linked Savings Scheme) funds are tax saving mutual funds. An investment in ELSS funds comes with a statuary lock-in period of 3 years and a tax benefit. Total investments of up to Rs 1.5 lakh in a financial year in ELSS funds are exempt from tax u/s 80C. Note that ELSS are equity mutual fund schemes, you should invest in them with an investment horizon of 5 years or more. Here, I have shortlisted two mutual fund schemes from this category.
Axis Long Term Equity Fund – Regular Plan (Growth Option)
The scheme aims to generate income and long-term capital growth from a diversified portfolio of equity and equity-related securities. This scheme comes with the dual benefits of building wealth and saving tax. The scheme was launched on December 29, 2009.
Details & Performance of the scheme
| Scheme Name | Axis Long Term Equity Fund |
| Category | ELSS |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 48.7967 |
| Assets (AUM) as on 30-Nov-2019 | 21160 Cr |
| Returns in 1 year | 16.97% |
| Returns in 3 years (Annualised) | 16.82% |
| Annualised returns in 5 years | 11.00% |
| Annualised returns in 7 years | 18.28% |
| Returns in 10 years (Annualised) | 17.16% |
| Returns since launch | 17.12% |
| Expense Ratio as on 30-Nov-2019 | 1.68% |
| 1 Lakh invested 1 year back grown to | 1.17 Lakh |
| 1 Lakh invested 3 years back grown to | 1.59 Lakh |
| One Lakh invested 5 years back grown to | 1.69 Lakh |
| 1 Lakh invested 7 years back grown to | 3.24 Lakh |
| 1 Lakh invested 10 years back grown to | 4.87 Lakh |
| Fund Manager since 01-Apr-2011 | Jinesh Gopani |
| Website | www.axismf.com |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-1 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Axis Long Term Equity Fund www.axismf.com
Mirae Asset Tax Saver Fund – Regular Plan (Growth Option)
The scheme aims to generate long-term capital growth from a diversified portfolio of equity and equity-related instruments. This scheme is suitable for investors who are seeking growth of capital over the long term and tax benefits. The scheme was launched on December 28, 2015.
Details & Performance of the scheme
| Scheme Name | Mirae Asset Tax Saver Fund |
| Category | ELSS |
| Plan Type | Regular Plan-Growth |
| NAV as on 08-Jan-2020 | 18.8980 |
| Assets (AUM) as on 30-Nov-2019 | 2877 Cr |
| Returns in 1 year | 13.95% |
| Returns in 3 years (Annualised) | 17.15% |
| Annualised returns in 5 years | — |
| Annualised returns in 7 years | — |
| Returns in 10 years (Annualised) | — |
| Returns since launch | 17.10% |
| Expense Ratio as on 30-Nov-2019 | 1.89% |
| 1 Lakh invested 1 year back grown to | 1.14 Lakh |
| 1 Lakh invested 3 years back grown to | 1.61 Lakh |
| One Lakh invested 5 years back grown to | — |
| 1 Lakh invested 7 years back grown to | — |
| 1 Lakh invested 10 years back grown to | — |
| Fund Manager since 23-Nov-2015 | Neelesh Surana |
| Website | www.miraeassetmf.co.in |
| Value Research Rating | 5 Star |
| CRISIL Rating | Rank-1 |
| Data Source: Value Research Online (As on 08/01/2020) | |
Click here to read more about Mirae Asset Tax Saver Fund www.miraeassetmf.co.in
14 Best Mutual Funds to invest in 2020
In the following table, you will find 14 Best Mutual Funds to invest in 2020. If you are planning to invest in a mutual fund for a period of five years or more you should consider these best mutual funds.
14 Best Mutual Funds to invest in 2020
| S. No. | Scheme Name |
Returns in Percentage* |
||||
|
1 Year |
3 Years | 5 Years | 7 Years |
10 Years |
||
| 1 | Axis Bluechip Fund |
18.12 |
19.43 | 10.35 | 14.38 |
12.12 |
| 2 | Mirae Asset Large Cap Fund |
11.71 |
14.75 | 11.61 | 16.00 |
14.02 |
| 3 | Mirae Asset Emerging Bluechip Fund |
14.98 |
16.33 | 15.54 | 22.18 |
— |
| 4 | Canara Robeco Emerging Equities Fund |
8.92 |
13.10 | 11.52 | 19.26 |
17.57 |
| 5 | SBI Magnum Multicap Fund |
11.15 |
12.08 | 10.69 | 15.06 |
10.99 |
| 6 | Kotak Standard Multicap Fund |
12.56 |
13.67 | 10.89 | 15.63 |
12.12 |
| 7 | Axis Focused 25 Fund |
17.10 |
18.18 | 12.59 | 14.47 |
— |
| 8 | SBI Focused Equity Fund |
16.80 |
16.47 | 11.12 | 13.64 |
16.25 |
| 9 | Kotak Emerging Equity Fund |
10.91 |
10.45 | 10.53 | 16.22 |
14.17 |
| 10 | DSP Midcap Fund |
11.63 |
10.52 | 10.25 | 15.75 |
14.29 |
| 11 | SBI Small Cap Fund |
7.57 |
14.13 | 13.27 | 22.54 |
17.32 |
| 12 | Axis Small Cap Fund |
22.02 |
14.34 | 11.22 | — |
— |
| 13 | Axis Long Term Equity Fund |
16.97 |
16.82 | 11.00 | 18.28 |
17.16 |
| 14 | Mirae Asset Tax Saver Fund |
13.95 |
17.15 | — | — |
— |
| Regular Plans – Growth *As on 08/01/2020 Data Source: Value Research | ||||||
14 Best Mutual Funds to invest in 2020
Final Thoughts
Above mentioned mutual funds are shortlisted as 14 best mutual funds in terms of returns and other parameters. However, you cannot avoid risk completely in equity mutual funds.
Equity mutual funds do not guarantee any returns. Past performance of a fund scheme may or may not repeat in the future.
Therefore, you should select mutual fund schemes for investment that match your investment goals, investment horizon, and risk profile.
14 Best Mutual Funds to invest in 2020
Disclaimer: The information in this post (14 Best Mutual Funds to invest in 2020) is strictly for general information purposes only. Please consult a financial advisor before making any investment decision.
14 Best Mutual Funds to invest in 2020
Related post: How to invest in Direct Mutual Funds in India?
Related post: SIP (Systematic Investment Plan) – A complete guide to SIPs in mutual funds
Thanks for the list. I choose blue chip mutual funds for my wealth creation. I check the Crisil rate before start SIP.