Top 5 Mutual Funds in India

#2 Bandhan Large & Mid Cap Fund

Second on the list is Bandhan Large & Mid Cap fund.

This fund follows three important points in terms of how it's managed: dynamism, anti fragility, and it follows the macro story.

It does not buy and hold and is confident about its stock rotation strategy. It doesn't bet much on anything following the top down approach.

It has generated the highest return among all Large & Mid Cap funds in its category, in the last 10 years. Over any three year rolling period, the fund has generated 24.2% returns compared to the category average of 17.7%.

Over one year, it generated 9.27%. Since launch, it has delivered 15.68% CAGR.

Bandhan Large & Mid Cap Fund Key Details

The scheme has shown an ability to deliver returns consistently than most funds in its category.

The fund has the majority of its AUM invested in Financial, Services, Energy, Capital Goods, and Healthcare sectors.

The fund's top 5 holdings are HDFC Bank, One97 Communications, Axis Bank, ICICI Bank, and Reliance Industries.

It remains to be seen how the fund performs given its ability to fall less in falling markets, which would be crucial.

#3 Nippon India Large Cap Fund

Third on the list is Nippon India Large Cap fund.

With over Rs 370 bn in AUM, it's one of the biggest funds in the category.

The fund has given an average 15.43% in terms of rolling returns in any 7-year period over the last 10 years, beating both category average and the Nifty 100. This suggests it hasn't just seen good phases but has also delivered steadily.

That kind of consistency usually points to solid stock picking and a well-run portfolio.

The credit to this solid track record and a part of it goes to the fund's manager. He has been managing the scheme since the fund's inception in 2007.

Since launch, it has delivered 12.18% average annual returns.

The fund has the majority of its AUM invested in Financial, Services, Energy, Consumer Staples, Healthcare sectors.

The fund's top 5 holdings are in HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Axis Bank Ltd., Bajaj Finance Ltd.

Going forward, investors should track its ability to control losses in a falling market.

#4 HDFC Mid Cap Fund

Fourth on the list is HDFC Mid Cap Fund.

HDFC Mid-Cap Fund has been a long-time favourite among investors in the mid-cap space. With a solid long-term track record and consistent SIP performance, many see it as a dependable option in a volatile category.

A Rs 10,000 monthly SIP started 10 years ago in this fund has grown to around Rs 3.5 m on a total investment of 1.2 m, delivering 20.64% annualized returns. Over the past 5 years, the fund's AUM has nearly tripled from Rs 250 bn to over Rs 750 bn.

This fund is managed by Chirag Setalvad, one of the most respected names in the mutual fund industry. He has been managing the fund right from the start and is known for his consistent and research-driven investment style. He's supported by Dhuv Muchal as co-fund manager.

HDFC Mid Cap Fund Key Details

The fund's returns for the last year stand at 7.67%. Since launch, it has delivered 17.05% average annual returns.

HDFC Mid Cap Fund scheme's ability to deliver returns consistently is in-line with most funds of its category.

The fund has the majority of its AUM invested in Financial, Healthcare, Automobile, Services, Consumer Staples sectors. It has taken less exposure in Financial and Healthcare sectors compared to other funds in the category.

The fund's top 5 holdings are in Max Financial Services, AU Small Finance Bank, The Federal Bank, Glenmark Pharmaceuticals, and Indian Bank.

It remains to be seen whether its top holdings perform as they've done in the past and delivere benchmark beating returns.

#5 Invesco India Smallcap Fund

Last on the list is Invesco India Smallcap Fund.

This fund's small-cap investing strategy has helped deliver strong long-term returns of close to 20% in terms of CAGR in multiple overlapping periods.

In terms of rolling returns, the fund has given 26% returns over any three year period.

Over 5 years and 7 years, the picture remains decent at 24% returns.

Invesco India Smallcap Fund Key Details

Since launch, it has delivered 21.03% average annual returns.

The fund has majority of its AUM invested in Services, Healthcare, Financial, Automobile, and Consumer Discretionary sectors.

Its top 5 holdings are Amber Enterprises, Sai Life Sciences, Max Healthcare Institute, Interglobe Aviation, and Krishna Institute of Medical Sciences.

Going forward, investors should watch how the fund managers identify high-growth companies early, focus on earnings growth, and use bottom-up stock picking to capture market cap transitions.

Conclusion

The five funds we just discussed have earned their spot based on cold, hard numbers in terms of rolling returns, risk metrics, and consistency across multiple timeframes.

But markets shift, fund managers change, and past performance doesn't guarantee future results.

Investors should select mutual funds that fit their risk appetite and time horizon, not the one that topped last year's return chart.

And if you're using SIPs, stay the course. Most of the wealth created in mutual funds don't happen in a single year. It accumulates quietly, over time.

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