A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, and other assets. It is managed by a professional investment management company, known as the fund manager or investment advisor.
When you invest in a mutual fund, you are purchasing shares or units of the fund. The price of these shares is based on the net asset value (NAV) of the mutual fund, which is calculated by dividing the total value of the fund’s assets by the number of shares outstanding.
Mutual funds offer a convenient way for individual investors to access a professionally managed and diversified portfolio without needing to directly buy and manage individual securities. They provide small investors with the ability to invest in a wide range of assets and benefit from economies of scale.
There are various types of mutual funds available to investors, each with its own investment objectives, strategies, and risk profiles. For example, there are equity funds that primarily invest in stocks, bond funds that invest in fixed-income securities, balanced funds that hold a mix of stocks and bonds, index funds that aim to replicate the performance of a specific market index, and sector-specific funds that focus on particular industries or sectors.
Mutual funds typically charge fees and expenses, including management fees, administrative costs, and sometimes sales loads (commission fees). It’s important for investors to carefully consider these costs, along with the fund’s performance history, investment strategy, and risk factors before investing in a mutual fund.
Here are the 5 best mutual funds with 19% ROI in 12 months : –
1) HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities Fund is a mutual fund offered by HDFC Asset Management Company, one of the leading asset management companies in India. It falls under the category of mid-cap equity funds.
As the name suggests, HDFC Mid-Cap Opportunities Fund primarily invests in mid-cap stocks. Mid-cap stocks are those that have a market capitalization between large-cap and small-cap stocks. The fund aims to provide long-term capital appreciation by investing in mid-cap companies that have the potential for growth.
The investment strategy of HDFC Mid-Cap Opportunities Fund focuses on identifying mid-cap stocks that are expected to benefit from the growth potential of the underlying companies. The fund manager conducts in-depth research and analysis to select stocks that exhibit promising growth prospects and are expected to deliver superior returns over the long term.
-> HDFC Mid-Cap Opportunities Fund has given a return of 19.06% in direct plan in 1 year.
-> For those who invested Rs 1 lakh, today’s value is Rs 1,19,060. 1 year return is 18.22 percent in regular plan.
-> If 1 lakh had been invested, today’s value is Rs 1,18,219.54.
2) Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund is a mutual fund offered by Motilal Oswal Asset Management Company, a well-known asset management firm in India. This fund falls under the category of mid-cap equity funds.
Motilal Oswal Midcap Fund aims to generate long-term capital appreciation by investing primarily in mid-cap stocks. The fund’s investment strategy revolves around identifying companies with strong growth potential and sustainable business models within the mid-cap segment of the Indian stock market.
The fund manager of Motilal Oswal Midcap Fund follows a research-driven approach to stock selection, focusing on companies with sound fundamentals, competitive advantages, and attractive valuations. The portfolio is constructed with a bottom-up approach, wherein individual stock selection is emphasized over sector or market timing.
-> Motilal Oswal Midcap Fund Direct Plan has a 1 year return of 15.64 percent.
-> Rs 1 lakh invested is worth Rs 1,15,640. The return on the regular plan is 14.31 percent.
-> If I had invested Rs 1 lakh, today’s value would be Rs 1,14,313.
3) Invesco India Midcap Fund
Invesco India Midcap Fund is a mutual fund offered by Invesco Mutual Fund, a well-established asset management company in India. It falls under the category of mid-cap equity funds.
The objective of Invesco India Midcap Fund is to generate long-term capital appreciation by primarily investing in mid-cap stocks. The fund aims to identify mid-sized companies with growth potential and invest in them with a long-term perspective.
The investment strategy of Invesco India Midcap Fund involves active stock picking and bottom-up research. The fund manager analyzes various factors such as company fundamentals, competitive position, management quality, and growth prospects to select stocks for the portfolio. The portfolio is diversified across different sectors and industries to mitigate risks.
-> Invesco India Midcap Fund managed to deliver 13.14% return in Direct Plan in 1 year.
-> 1 lakh investment value is Rs 1,13,139. 11.6 percent return in regular plan.
-> Rs 1 lakh has grown to Rs 1,11,602.
4) ITI India Mid Cap Fund
-> Midcap Fund Direct Plan from ITI Asset Management Ltd gave a return of 12.61%.
-> An investment of 1 lakh rose to Rs 1,12,612. The return on the regular plan is 10.17% in 1 year.
-> Today’s value of 1 lakh has become Rs 1,10,166
5) Franklin India Prima Fund
Franklin India Prima Fund is a mutual fund offered by Franklin Templeton Mutual Fund. It falls under the category of mid-cap equity funds.
The primary objective of Franklin India Prima Fund is to provide long-term capital appreciation by investing primarily in mid-cap stocks. The fund aims to identify mid-sized companies with good growth potential and invest in them with a long-term perspective.
The investment strategy of Franklin India Prima Fund involves a bottom-up approach to stock selection. The fund manager conducts in-depth research and analysis to identify companies with strong fundamentals, sustainable business models, and competitive advantages. The portfolio is constructed with a focus on individual stock selection rather than sector or market timing.
-> Franklin India Prima Fund returned 12.41 per cent in direct plan.
-> An investment of Rs 1 lakh has turned into Rs 1,12,411. 1 year return is 11.5 percent in regular plan.
-> The value of 1 lakh has changed to Rs 1,11,497.