How Can I Invest in a Top-rated Mutual Fund?
Last Updated : Aug. 10, 2019, 11:31 a.m.
Mutual funds are one of the great tools for wealth creation over time. Actually, these are a pool of money collected from several small, mid and large scale investors. The money so collected is dispersed across a wide range of financial instruments such as stocks, bonds, debentures, etc.
Broadly, there are three types of mutual funds – equity funds, debt funds and hybrid funds. While equity funds keep the money predominantly in equity and equity-related instruments to appreciate the growth of investor capital, debt funds invest the money mostly in debt instruments such as bonds, debentures, money-market securities to ensure stable returns for investors. In between these two, there are hybrid funds that allocate the assets in both equity and debt instruments for capital appreciation and regular income generation.
Doesn’t matter which category of mutual fund you go for, you should look at the rating it is assigned by the agencies. The rating, which is given in 1-5 stars, is an indicator of how the particular fund has performed over the years. A good rating means the fund has 3-5 stars. This post will explain as to how can you invest in top-rated mutual funds. But, before that, you should know which are those top-rated mutual funds available right now. For that and much more, you should read the post further.
Top-rated Equity Mutual Funds to Invest in
Here’s a list of top-rated equity funds you should look to invest in.
| Top-rated Equity Funds | Rating | 1-year Return | 3-year Return | 5-year Return | 10-year Return |
|---|---|---|---|---|---|
| SBI Small Cap Fund | 5 Star | -14.15% | 10.69% | 18.16% | - |
| Motilal Oswal Multicap 35 Fund | 5 Star | -9.02% | 7.81% | 15.74% | - |
| HDFC Small Cap Fund | 5 Star | -15.81% | 8.55% | 12.45% | 13.88% |
| Reliance Large Cap Fund | 5 Star | -4.29% | 8.95% | 10.66% | 12.16% |
| Axis Bluechip Fund | 5 Star | 1.29% | 12.73% | 11.85% | - |
| Franklin India Prima Fund | 4 Star | -9.25% | 4.95% | 12.45% | 16.74% |
| DSP Midcap Fund | 4 Star | -10.18% | 5.72% | 13.08% | 16.54% |
| Reliance Growth Fund | 3 Star | -6.58% | 5.88% | 10.32% | 11.64% |
| ICICI Prudential Midcap Fund | 3 Star | -9.94% | 5.45% | 9.64% | 14.30% |
| Reliance Multi Cap Fund | 3 Star | -4.65% | 6.20% | 8.22% | 15.28% |
Top-rated Debt Mutual Funds to Invest in
The table below shows the list of top-rated debt mutual funds where can you invest your money in.
| Top-rated Debt Funds | Rating | 1-year Return | 3-year Return | 5-year Return | 10-year Return |
|---|---|---|---|---|---|
| Axis Banking & PSU Debt Fund | 5 Star | 11.09% | 8.39% | 8.51% | - |
| HDFC Short Term Debt Fund | 5 Star | 9.53% | 7.77% | 8.45% | - |
| Reliance Liquid Fund | 5 Star | 7.51% | 7.12% | 7.62% | 7.85% |
| Axis Liquid Fund | 5 Star | 7.44% | 7.12% | 7.62% | - |
| Baroda Liquid Fund | 5 Star | 7.40% | 7.10% | 7.63% | 7.85% |
| UTI Liquid Cash Fund | 4 Star | 7.44% | 7.10% | 7.59% | 7.81% |
| Aditya Birla Sun Life Liquid Fund | 4 Star | 7.47% | 7.10% | 7.63% | 7.90% |
| Mirae Asset Cash Management Fund | 3 Star | 7.36% | 6.99% | 7.33% | 7.00% |
| HDFC Liquid Fund | 3 Star | 7.31% | 6.94% | 7.51% | 7.75% |
Top-rated Hybrid Funds to Invest in
The table below shows a refined list of top-rated hybrid mutual funds.
| Top-rated Hybrid Funds | Rating | 1-year Return | 3-year Return | 5-year Return | 10-year Return |
|---|---|---|---|---|---|
| Principal Hybrid Equity Fund | 5 Star | -5.85% | 9.35% | 10.36% | 11.03% |
| ICICI Prudential Regular Savings Fund | 5 Star | 6.52% | 8.07% | 9.99% | 9.66% |
| HDFC Hybrid Equity Fund | 4 Star | -0.81% | 7.98% | 10.74% | 14.89% |
| DSP Equity & Bond Fund | 4 Star | -1.29% | 6.89% | 11.43% | 11.59% |
| Aditya Birla Sun Life Regular Savings Fund | 4 Star | 0.36% | 5.31% | 9.55% | 9.51% |
| ICICI Prudential Child Care Fund - Gift Plan | 3 Star | -1.74% | 5.58% | 8.16% | 13.07% |
| HDFC Hybrid Debt Fund | 3 Star | 5.69% | 5.88% | 8.07% | 9.07% |
How to Invest in a Top-rated Mutual Fund?
You can invest in any of these mutual funds via lump sum or Systematic Investment Plan (SIP) . Lump sum investments are typically a one-time in mutual fund. On the other side, you can invest via SIP at regular intervals, be it daily, weekly, fortnightly, monthly, quarterly, half-yearly or annually.
How to Invest in Top-rated Mutual Funds Online?
You can invest online via Wishfin, a neutral financial marketplace where you can check, compare and choose the top-rated mutual fund across equity, debt and hybrid categories. Just follow the steps shown below and start investing.
- Go to www.wishfin.com
- Click on ‘Mutual Funds’
- Go to ‘Register’
- Enter your mobile number
- Click on ‘Get Started’
- Mention your name, email ID, the city you live in
- Create a password that conforms to alphabet, numeric and special character requirements
- Click on ‘Sign Up’
Your account will be created by entering a few more details.
After Login
- Go to ‘Explore Mutual Funds’
- Click on ‘Equity’, ‘Debt’ or ‘Hybrid’ icon, whichever you wish to
- A list of funds under the respective category will appear on the screen
- Click on ‘Invest’ below any of the top-rated schemes you wish to invest in
Note – The data is sourced from Value Research as on August 8, 2019, and pertains to the regular plan of the schemes shown above.
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.