Which are best performing mutual funds for Investment in 2021? Did you type this question on the search engine? Or are you looking for answer of this question? If yes, this post is for you. In this post, I will share Best Performing Mutual Funds for Investment in 2021.
How to shortlist Best Performing Mutual Funds?
The list of best performing mutual funds given below is not shortlisted based on the current performance of the scheme. The reason is the mutual fund that is performing well today does not guarantee that it will perform in the same manner or generate same return in the future.
This means you cannot shortlist fund based on the short term performance. You need to consider various things for finding best performing mutual funds. I have considered following things in order to shortlist best performing mutual funds.
#1 Performance Against Benchmark
The performance of fund against benchmark is extremely important. The benchmark is standard against which its performance of mutual fund is compared. As per mandate set by SEBI, fund houses to declare the benchmark index. The fund returns need to be compared with benchmark. If the selected mutual fund has delivered higher returns compared to benchmark, the fund has outperformed benchmark.
The comparison of fund with benchmark is done for the longer duration to find out outperforming mutual funds.
#2 Performance Against Category
The second important thing to consider while selecting best performing fund is performance of fund compared to active peer group. It gives holistic picture of fund performance. The comparison should be done in the same category. This means you cannot compare return given by large cap fund with mid cap fund.
#3 Consistence Performance
The third important thing to consider is consistency in the performance. The fund should be generating good returns consistently. This include both bullish and bearish market period. It is advisable to consider last 5 years’ performance while making selection of best performing mutual funds.
Best Performing Mutual Funds for Investment 2021
Large Cap Funds 2021
#1 Axis Blue Chip Fund – Growth
Axis Blue Chip Fund – Growth is first in the list of best performing fund for investment. This fund has given consistently two digit returns to the investors in past five years. This fund follows benchmark Nifty 50. This fund has consistently beat benchmark in last five years. This fund is also performing better compared to peer funds.
#2 Canara Rob Blue Chip Equity Fund – Growth
Canara Rob Blue Chip Equity Fund – Growth is next in the list of best performing fund for investment. This fund has CRISIL ranking 5. Last five years returns of this fund is very good. This fund follows benchmark S&P BSE 100. This fund has given very good returns compared to peer funds.
Mid Cap Funds 2021
#3 Axis Mid Cap Fund – Growth
Axis Mid Cap Fund – Growth is first best performing mid cap mutual fund for investment. Axis Mid Cap Fund invests in large portion in mid cap stock. In addition to mid-cap this fund also invests in large cap and small cap stocks. This fund was able to beat BSE Mid Cap benchmark consistently in last five years. The past performance of this fund compared to peer is also good.
#4 DSP Mid Cap Fund – Growth
DSP Mid Cap Fund Growth is next in the list of best performing fund. DSP Mid Cap fund has generated very good returns for the investors in last five years. If you are planning to invest your money for 3-4 years you can invest in DSP Mid Cap Fund. The performance of this fund compared to peer is also good.
Multi Cap Funds 2021
#5 UTI Equity Fund – Growth
UTI Equity Fund is truly multi cap fund which invest in large cap, mid cap and small cap stocks. This fund is giving consistently two digit returns to the investors in last five years. This fund follows Nifty 50. This fund has outperformed Nifty 50 benchmark and generated very good returns for the investors in last five years.
#6 Canara Robeco Equity Diversified Fund – Growth
Canara Robeco Equity Diversified Fund – Growth is CRISIL rank 5 fund. This fund has given very good performance in the past. This fund follows benchmark S&P BSE 500. Canara Robeco has outperform benchmark and given very good returns to the investors. This fund is suitable for long term wealth generation 3-5 years.
Final words
Selection of mutual fund for investment is task. You need to do lot of research while making a selection of mutual funds. You can make use of screener for doing research. Compare the fund with respect to various parameters.
Consider goals, risk, returns and asset allocation while making a selection of mutual funds. Before selecting a fund for investment consider evaluating performance based on various durations from 1 month to 5 years. This will help you to know consistency in performance for the longer duration. You may consider looking at rating of the fund while making a selection.
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