Which are the top 20 mutual funds for investment in 2020-21? Where I should invest my money in 2020 to get more return? Most people try to get answers to these questions by asking friends or colleagues. Some of them also use a search engine to get a readymade list of best mutual funds for investment. Very few people research by self to find out good mutual funds for investment. Many investors even wonder after making an investment that they have picked up the right scheme or not.
That’s why I decided to put a list of 20 Best Mutual Funds for Investment 2020 via SIP. This list contains mutual funds from large-cap, mid-cap, small-cap, multi-cap, ELSS schemes. In the last year 2019, I have also recommended mutual funds. A few of them have generated magnificent returns details are given below.
- Axis Bluechip Fund – Direct – Growth – 22.21%
- Mirae Asset Emerging Blue Chip Fund – 16.14%
- Canara Robeco Emerging Equity Fund – 9.2%
- Axis Mid Cap Fund – 16.3%
- ICICI Prudential Equity and Debt Fund – Direct – Growth – 9.1%
- SBI Equity Hybrid Fund – 15.3%
- Invesco India Tax Plan – Direct -12.27%
- Axis Long Term Equity Fund – 16.84%
Similar to last year, here is a list of top 20 best mutual funds for investment in 2020. If you are planning to invest in a mutual fund for the long term you should consider these funds.
Shortlisting method for Mutual Fund –
- Category of Funds – The first factor for the shortlisting is a category of fund like large cap, small cap, mid cap, ELSS, debt, balance etc. I have shortlisted fund for every category.
- Fund performance – The second factor used for shortlisting of a fund is the fund performance. I have selected best performing fund 3-5 years.
- Fund Rating – Another important factor is fund rating. Higher the fund rating better is fund. I have considered rating given by CRISIL and Value Research. The fund rating above 3 stars are considered.
- Fund Manager Expertise and Experience – A Fund manager is the person who makes the decision about buying, selling, or holding the stock in the mutual funds. The returns of the fund depend on the decision taken by the fund manager and its expertise.
- Holdings – Another factor for the shortlisting of Best Mutual fund is fundholding. Fundholding with good blue-chip stocks or making an investment in stocks which are likely to appreciate in future.
- Expense Ratio – Expense ratio is one of the important factors that affect mutual funds return. Higher the expense ratio means a lower return. All the funds given below are with low expense ratio.
- Scheme and Asset Size – Scheme type and asset size is another important factor while selecting funds. All funds selected here are higher in asset size – 100 Cr or above.
Based on the above parameters the Best Mutual Funds SIP to Invest for 2020 are given below.
20 Best Mutual Funds 2020-21
Note – Returns are annualized as on 30th Nov,2019
Top 4 Best Large Cap Mutual Funds for 2020
#1 Axis Bluechip Fund Direct Plan – Growth
Axis Bluechip fund is the first large-cap mutual funds for investment in 2020-21. It is a five star rated fund. This fund has given magnificent returns to the investor in the last five years. The expense ratio of this fund is very low. This fund aims to generate long term capital growth by investing in large-cap stocks.
#2 ICICI Prudential Bluechip Fund – Growth
ICICI Prudential Bluechip fund is next in the list of best mutual funds for investment in 2020-21. It is a four-star fund with a history of a very good return. This fund is suitable for investors who are looking to invest money for 3-4 years and looking for higher returns.
#3 Canara Robeco Bluechip Equity Fund – Direct Plan – Growth
Canara Robeco Bluechip Equity Fund – Direct Plan is next scheme for investment. The objective of this scheme is to provide capital appreciation by investing in companies with large market capitalization. This fund is able to generate 18% return in last one year. The expense ratio of this fund is low.
#4 SBI Bluechip Fund – Growth
SBI Bluechip is a four-star rated fund by value research online. It is one of the best funds in SBI AMC. This fund invests in diversified large-cap companies. The unique selling point of this fund is an experienced fund manager, low expense ratio, very good fund rating, and fund performance.
Top 4 Best Mutlicap Diversified Mutual Funds for 2020
#5 Motilal Oswal Multicap 35 Fund – Growth
Motilal Oswal Mutlicap 35 fund is a popular fund in the multi cap category. This fund is rated with 5-star rating by value research online. In the past few years, this fund has given above-average performance. It is a moderate risk fund managed by an experienced fund manager. This fund has a low expense ratio.
#6 Kotak Standard Multicap Fund – Growth
Kotak Standard Multicap Fund is one of the best multicap diversified funds for investment in 2020. This fund has a very good diversified equity portfolio. This fund has 90% of investment in equity. The major holding is in large-cap category. An investor with 3-5 years horizon can invest in this fund.
#7 Aditya Birla Sun Life Equity Fund – Growth
Aditya Birla Sun Life Equity is a fund with 3-star CRISIL rating. The objective of this fund is to achieve capital appreciation with a target allocation of 90% of above in the equity market. This fund is managed by an experienced fund manager. This fund has generated very good returns for the investor in the past.
#8 SBI Magnum Multi cap Fund – Growth
SBI Magnum Multi cap fund is a diversified equity fund with a fund rating of four-star. This fund invests more than 90% in equity, out of which 50% is in large-cap, 30% in mid-cap and small-cap. A major investment of this fund is in the banking stocks.
Top 3 Best Mid & Small Cap Mutual Funds for 2020
#9 Axis Mid Cap Fund – Growth
Axis Mid Cap Fund is five star rated fund. This fund has given very good returns in the past. This fund has more than 60% investment in mid-cap stocks. It is managed by an experienced fund manager. An expense ratio of this fund is average.
#10 Franklin India Prima Fund – Growth
Franklin India Prima Fund is a four-star rated mid-cap fund. This fund has an objective to provide medium to long term capital appreciation. This fund is managed by an experienced fund manager. This fund is moderately high-risk fund. It has a low expense ratio.
#11 SBI Small Cap Fund – Growth
SBI Small Cap Fund is the best small-cap fund for investment. This fund has given very good returns to the investors in the past 5 years. This fund has a slightly high expense ratio. Value research has given 5-star rating to this fund.
Top 3 Best Hybrid Mutual Funds for 2020
#12 HDFC Hybrid Equity Fund – Growth
HDFC Hybrid Equity fund is the first hybrid fund for investment in 2020. It is 3 star rated fund managed by an experienced fund manager. This fund has a very good stock portfolio of bluechip stocks from the banking, technology and energy sector. This fund invests 70% of the fund in equity and remaining in debt. This means you can get advantage of equity as well as debt component.
#13 ICICI Pru Equity & Debt Fund – Growth
ICICI Pru Equity & Debt Fund is an Aggressive hybrid fund. This fund has given good performance compared to other funds in the same category. This fund has a low expense ratio. This fund has a four-star rating and diversified portfolio. This fund has a 75% investment in equity.
#14 SBI Equity Hybrid Fund – Growth
SBI Equity Hybrid Fund is a five star rated fund managed by an experienced fund manager. This fund has a low expense ratio and very good portfolio holdings. Historically this fund has given very good returns. You can invest in the fund for a long term perspective.
Top 4 Best ELSS Funds for 2020
#15 Axis Long Term Equity Fund – Growth
Axis Long Term Equity Fund is the first ELSS fund recommended for investment in 2020. This fund provides income tax benefits and comes with lock-in period of 3 years. In the last three years, this fund has given more than 16% returns to the investors. A major investment of this fund is in the financial sector.
#16 Invesco India Tax Plan – Growth
Invesco India Tax Plan is the next ELSS fund for investment. Invesco India Tax plan has four-star rating. This fund has given very good returns to the investor. This fund has a slightly higher expense ratio. However, it is managed by an experienced and skill fund manager.
#17 Aditya Birla Sun Life Tax Relief ’96 Fund – Growth
Aditya Birla Sun Life Tax Relief ’96 Fund is four star rated fund with good performance track record. The objective of this fund is to generate long term growth of capital. This fund is managed by an experienced fund manager. This fund has a very good stock portfolio with investment in energy, engineering, and financial sectors.
#18 Motilal Oswal Long Term Equity Fund – Growth
Motilal Oswal Long Term Equity Fund is comparatively new ELSS fund. It is five star rated fund. In past three years this fund has given 14% returns to the investors. It is managed by skilled fund manager. This fund has diversified stock portfolio.
Top 2 Best Debt Mutual Funds for 2020
#19 SBI Magnum Constant Maturity Fund
SBI Magnum Constant Maturity Fund is best mutual fund for investment in debt category. This type of fund is suitable for low risk investor. This fund has given very good returns in the past. The portfolio of this fund consist of majority of the government backed holdings.
#20 UTI Gilt Fund
UTI Gilt Fund is next fund in the debt category. This fund invests in government backed securities for capital appreciation. This fund has generated good returns in past one year. Investors who wants to invest money for longer duration with safety can invest in this fund.
Above funds are classified as best fund in terms of returns and other parameters, that does not mean that you need to invest in these mutual fund blindly. You should always select a mutual fund scheme that match with your risk profile, investment objective, horizon and financial goal before investing. If you are new to mutual fund investment you should take help from mutual fund advisor.
Once you have invested your money in the mutual fund, you should monitor it at regular interval and make changes in the portfolio time to time.
Do share your queries and comments.
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