If you are wan to invest in the mutual fund and waiting for the best mutual funds for SIP this new year 2020 then your waiting is over. I will help you to choose the best mutual fund which will give you good returns in the future.
All the intelligent investors new this thing very well and they also suggest that equities are the best asset class for investing. That’s why I created this blog to help you guys to select the best mutual fund to invest in 2020.
2020 will be your best year in terms of getting good returns in you will choose a good mutual fund for investing. This is a disclaimer that this is my personal opinion, I am not saying you to buy any of them without any proper research.
This is not a sponsored post. I am not taking any money to write this article.
In this article, I am giving you a list of best mutual funds category wise.
- Tax saving fund
- Large-cap fund
- Multi-cap fund
- Small-cap fund
- Mid-cap fund
Detailed Analysis of SBI Mutual Fund
So we will start with our first category which is a tax-saving fund.
1. Tax Saving Fund
Equity Linked Savings Scheme (ELSS) are the mutual fund which helps you to save your money up to rupees 1.5 lakhs under Section 80C of Income Tax Act.
In this category one mutual fund is doing very good from some years down the year. And the name of the fund is Aditya Birla Sun Life Tax Relief 96.
This year 2019 is not a very good year for this fund. But there is some reason behind not so good performance of this fund.
This fund is one of those rare funds which took a good exposure in the mid-cap and small-cap funds. So presently 55% AUM of this fund is in mid-cap and small-cap stocks.and because in the last 1 to 1and ½ years midcap and small-cap stocks didn’t do well so that this fund also didn’t do so well in past 1 to 1 and ½ years.
But as well as mid-cap and small-cap sectors will recover this fund will also do well as their glories track record. And this fund will be the leader of the ELSS category.
So for this year, the recommendation in the tax-saving category is Aditya Birla Sun Life Tax Relief 96 funds. This fund is a really good and one of the best mutual funds for SIP in this year.
Pros & Cons
2. Large Cap Fund
Now the second category is the large-cap mutual fund. And recommendation in this large-cap fund is Axix Bluechip Fund. There are so many reasons to choose this very fund.
First is – this mutual fund beats their benchmark consistently down the row. Their last 3 years’ performance, last 5-year performance was in the top 3 in their category. So this fund consistently beats their category also.
Their 0.8% expense ratio In a direct plan is very reasonable and also justified. Because this fund has very low expense ration this fund also gives you better returns after expense ratio return.
- This fund consistently beats 5 years, 3 years and 1-year benchmark in their category
- Have a very good track record of AMC
- Have a very low expense ratio (0.8%)
Now there are so many changes in the large-cap fund. Some large-cap funds called themselves a large-cap mutual fund but they also invest in midcap and small-cap stocks also.
But now after SEBI’s reclassification rules, a large-cap fund has to invest 80 of their money in the large-cap stocks only. And they can invest in mid-cap and small-cap with the other 20% on the money. This is another best mutual funds for SIP.
Pros & Cons
3. Multi-Cap Fund
This is a very favorite category among investors. And if you want to invest in mutual funds you should pick at least one multi-cap mutual fund.
This is a very good mutual fund category because the multi-cap fund category fund manager doesn’t have any restrictions like the large-cap fund’s fund manager that they have to invest 80% of the money in the large-cap fund.
In the multi-cap fund, fund manager cap invests in any stock without thinking that is this a large-cap stock, mid-cap stock or small-cap stock.
In this case, that fund manager has an advantage s that he can outperform the others and give you more returns on your hard-earned invested money.
So because of this flexibility, I like the multi-cap fund category. And the multi-cap fund recommendation is Parag Parikh Long Term Equity Fund.
This is another fund which gives consistently returns down the year. This fund is on the top in their category for two years. Their 5 years and 3-year performance is the consistency.
This fund also gives you international exposure 30-35% of your money invested in companies like Facebook, Google & Microsoft. Which is normally not possible in other Indian funds. This fund helps you to invest in the foreign market. And you don’t have to give an extra fee or money for it.
This fund also has a focused approach. It means this fund doesn’t have more than 25-30 stocks. The turnover of this fund is very low. This means this fund really hold their funds for long term investment. So Parag Parikh Long Term Equity Fund is our recommendation in the multi-cap mutual fund category which is another one of the best mutual funds for SIP.
Pros & Cons
4. Mid Cap Fund
I researched for mutual funds in the mid-cap category but unfortunately, I didn’t get any good mutual fund in the mid-cap category according to their past returns and other criteria.
5. Small-Cap fund
After the reclassification rule of Sebi small-cap fund gets a very wide mandate. Now they can invest from the 251st rank market-cap wise company to all the companies which are listed in the Indian stock market.
So now a small-cap fund has a choice of 2000 to 2500 companies to invest. Small-cap funds managers now have a very wide choice of 2000 to 2500 companies. So they have a huge chance to outperform others.
Another reason is, small-cap depreciated very much from the last 1-2 years & now the valuation of the small-cap is very attractive and I think that in the next 2-3 years it will be very good for small-cap funds.
And our small-cap fund recommendation is the Axix Small Cap Fund. Because of performing very good in also adverse conditions recommending this fund is very obvious.
Pros & Cons
These are some best mutual funds for SIP as per my detailed research and analysis. If you want to invest in a mutual fund you can start with these mutual funds. Tell me in the comment if you like this article and till next time…Goodbye. Stay Happy
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