Investing is mutual funds is not just about short term returns as these investments work best in case one stays invested for longer periods. Perhaps more importantly, mutual funds are often compared between different types which, is not the correct way to make this comparison. Different types of mutual fund schemes such as equity, debt and hybrid as well as their numerous subtypes offer varying rates of return and they should thus be compared within their respective categories in order to make an accurate comparison. In the following section, the top ranked mutual funds in various key investment categories will be provided.
Top Rated Large Cap Mutual Funds
The following are some of the top picks in the category investors can consider investing in 2020:
Table: Top Rated Large Cap Equity Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| ICICI Pru Bluechip Fund | 11.21% | 10.9% | 8.87% |
| DSP Focus Fund | 21.84% | 9.67% | 8.83% |
| Reliance Large Cap Fund | 7.97% | 13.05% | 8.46% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 7th Feb 2020.
ICICI Pru Bluechip Fund: Earlier known as ICICI Prudential Focused Bluechip Equity Fund, this scheme primarily invests in the 20 largest listed companies by market capitalization selected from a list of the 200 largest listed companies in India. The scheme however has now expanded its universe of investments beyond the original 200 company restriction after the AUM of the scheme exceeded Rs. 1000 crores. This scheme is one of the top choices for moderately risk tolerant investors seeking relatively consistent long term equity returns.
DSP Focus Fund: Earlier known as the DSP BlackRock Focus 25 Fund, this scheme focuses on making investments primarily in the top 200 companies based on market cap listed in India. Apart from such large cap investments, this scheme also has the allowance to invest up to 20% of its investible assets in companies that are smaller than those featuring the top 200 listed ones in terms of market cap. Additionally, the DSPBR Focus Fund is required to invest 95% or more of its assets in the top 25 holdings in the scheme’s equity portfolio exclusive of the fund’s money market/debt investments, if any.
Reliance Top 200 Fund: The Reliance Top 200 Fund, now known as the Reliance Large Cap Fund officially seeks to provide investors with long term capital appreciation. This is attempted through investments made primarily into equities and equity derivatives of large cap companies listed in India. A majority of this scheme’s investments have featured companies whose capitalization is among the top 200 in India, however, this scheme has always maintained a relatively small midcap investment. As a result of its relatively high mid cap exposure as compared to its peers, this equity fund is considered to be one of the most aggressive investment options in its category. Here is the list of top rated large cap mutual schemes:
Top Rated Mid & Small Cap Funds
Table: Top Rated Mid and Small Cap Equity Fund Returns*
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| L&T Emerging Businesses Direct Growth | -6% | 8.21% | 13.04% |
| Reliance Small Cap Direct Growth | -3.71% | 9.33% | 12.43% |
| HDFC Small Cap Fund Direct Growth | -5.30% | 9.95% | 12.40% |
| Aditya Birla SL Small Cap Direct Growth | -10.37% | 0.54% | 9.25% |
| Franklin India Smaller Companies Direct Growth | -3.92% | 2.83% | 10.26% |
| Kotak Small Cap Direct Growth | 3.95% | 4.96% | 11.28% |
| SBI Small Cap Direct Growth | 5.28% | 13.24% | 18.23% |
| DSP Small Cap Direct Plan Growth | -1.90% | 0.38% | 10.63% |
| HSBC Small Cap Equity Direct Growth | -4.03% | 0.80% | 7.01% |
| Sundaram Select Micro Cap Series VIII Direct Growth | -18.57% | 0.72% | NA |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Ranked Diversified Equity Funds
This class of equity schemes invests in a wide variety of equity and equity derivatives irrespective of their sector/thematic affiliation or their market cap. These schemes tend to provide an excellent balance between risk and capital appreciation which makes this type of equity investment an excellent choice for new investors with moderately high risk tolerance. Here is the list of top ranked diversified schemes:
Table: Top Rated Diversified Equity Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| DSP BlackRock Equity Opportunities Fund | 9.26% | 9.69% | 12.35% |
| HDFC Capital Builder Value Fund | -2.18% | 8.53% | 10.06% |
| Motilal Oswal Multicap 35 Fund | 8.17% | 10.11% | 15.29% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Ranked ELSS (Equity Linked Saving Schemes) Funds
ELSS stands for equity linked savings schemes and this type of fund is also known as tax saver scheme as it provides tax benefits to investors under Section 80C of the Income Tax Act, 1961. Additionally, these schemes have the shortest lock-in among all tax saving investments available to Indian investors. Here is the list of top ranked ELSS schemes:
Table: Top Rated Equity Linked Savings Scheme (ELSS) Returns*
| Fund Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Tax Plan Direct Growth | -11% | 4% | 12% |
| Motilal Oswal Long Term Equity Fund Direct Growth | 9% | 12% | NA |
| DSP Tax Saver Direct Plan Growth | 13% | 10% | 12% |
| Principal Tax Savings Fund Direct | -1% | 8% | 10% |
| Aditya Birla Sun Life Tax Relief 96 Growth | -1% | 9% | 13% |
| IDFC Tax Advantage (ELSS) Fund Regular Growth | -13% | 7% | 9% |
| HDFC LT Advantage Direct Growth | 6% | 9% | 9% |
| SBI Tax Advantage Series II Growth | -3% | 9% | 13% |
| L&T Tax Adv Direct Growth | -1% | 8% | 10% |
| Invesco India Tax Plan Direct Growth | 5% | 11% | 12% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Sectoral/Thematic Funds
Sectoral or Thematic funds are a type of equity scheme that primarily invests in a specific theme or sector of the economy. Due to the high level of exposure to a specific sector/theme, these equity schemes are often volatile and require a high level of expertise to time a successful investment in and redemption from. The following are some of the top ranked mutual funds in the sectoral/thematic category.
Table: Top Rated Sectoral/Thematic Fund Returns*
| Fund Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Taurus Infrastructure Direct Growth | -16% | 5% | 7% |
| L&T Infrastructure Direct Growth | 5% | 7% | 7% |
| IDFC Infrastructure Direct Growth | -1% | 7% | 8% |
| Sahara Infrastructure Variable Pricing Growth | -10% | 6% | 8% |
| Franklin Build India Direct Growth | 6% | 9% | 13% |
| Reliance Power & Infra Direct Growth | -1% | 7% | 8% |
| DSP T.I.G.E.R Direct Growth | 6% | 7% | 10% |
| SBI Infrastructure Direct Growth | 13% | 7% | 9% |
| ICICI Pru Infrastructure Direct Growth | 5% | 7% | 7% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Rated Liquid and Ultra Short Term Funds
Liquid funds and ultra short term debt funds make debt and money market investments that are mostly held till maturity instead of being traded on their designated markets. Typically liquid schemes invest in money market instruments and bonds with residual maturity of 91 days or less, while ultra short term scheme’s investments feature residual maturity of up to 1 year. Both these types of schemes offer high levels of liquidity to the investor along with relatively low levels of risk. The following are the top rated mutual funds in the liquid and ultra short term debt fund category.
Table: Top Rated Liquid and Ultra Short Term Debt Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| Franklin India Ultra Short Bond Fund – Super Institutional Plan | 10.08% | 8.87% | 9.28% |
| Reliance Low Duration Fund | 7.57% | 7.24% | 7.95% |
| ICICI Prudential Flexible Income Plan | 6.33% | 7.87% | 8.51% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Rated Credit Opportunities Accrual Funds
Accrual debt funds focus on making their money through interest earnings that are based on the coupon rates of individual bonds. In common practice, a higher rate of return (coupon rate of a bond) is based on the level of risk inherent to the fixed return instrument. This is the key reason why accrual mutual funds also known as credit opportunities schemes often invest in relatively low quality bonds to a certain extent apart from other lower risk fixed return options. These schemes often hold their investments till maturity instead of trading them on designated exchanges.
Table: Top Rated Credit Opportunities (Accrual) Debt Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| Franklin India Low Duration Fund | 9.18% | 8.71% | 9.3% |
| Reliance Credit Risk Fund | 4.42% | 6.37% | 8.14% |
| ICICI Pru Credit Risk Fund | 9.78% | 8.33% | 9.26% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Rated Balanced Funds
Balanced funds are hybrid schemes that invest in both equities/equity derivatives as well as debt/money market instruments. This allows balanced schemes to offer an unmatched combination of risk and return that cannot be provided by simple equity or debt schemes. If equity investments form the major portion of a balanced scheme’s investments, it is designed as equity oriented balanced scheme. While balanced schemes with debt as the major investment in their portfolio is termed as a debt oriented balanced fund.
Table: Top Rated Balanced Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| ICICI Pru Equity & Debt Fund | 3.83% | 9.02% | 10.83% |
| HDFC Balanced Fund | 6.42% | 8.94% | 9.2% |
| Reliance Equity Hybrid Fund | -0.96% | 7.09% | 9.19% |
| L&T Hybrid Equity Fund | 3.43% | 7.52% | 10.57% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Rated Monthly Income Plans
Monthly income plans are hybrid schemes that invest with the intention of generating regular income for its investors. In ideal circumstances, monthly payouts in the form of dividends are made by the dividend variants of these schemes. However, being market linked investments, returns are not guaranteed by the scheme and payout amounts can also tend to vary over time.
Table: Top Rated Monthly Income Plan Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| HDFC Hybrid Debt Fund | 7.88% | 5.81% | 8.07% |
| ICICI Pru MIP 25 Fund | 10.09% | 8.88% | 10.47% |
| Reliance Hybrid Bond Fund | 4.69% | 6.01% | 8.3% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top Rated Arbitrage Funds
Arbitrage funds are a special class of hybrid schemes that make profits by taking advantage of the different price points of the same stock on capital markets and derivatives markets. These are actively managed funds that feature high levels of turnover in their portfolio. Apart from equity and equity derivative investments, these schemes also hold substantial debt and money market investments in their portfolio. Some of the top ranked arbitrage funds available in India are as follows.
Table: Top Rated Arbitrage Fund Returns*
| Scheme Name | 1 Year Returns | 3 Year Returns | 5 Year Returns |
| Axis Arbitrage Fund | 6.9% | 6.89% | 7.27% |
| ICICI Pru Equity Arbitrage Fund | 6.8% | 7.11% | 7.11% |
| Reliance Arbitrage Fund | 7.12% | 6.95% | 7.39% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Ranked Multi Cap Equity Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Axis Focused 25 Direct Growth | 11.30% | 15.43% | 15.21% |
| Mirae Asset India Equity Fund Direct Growth | 6.49% | 12.26% | 12.61% |
| Principal Multi Cap Growth Fund Direct Growth | 6.90% | 8.88% | 9.30% |
| Aditya Birla SL Equity Direct Growth | 6.26% | 8.14% | 11.98% |
| Kotak Standard Multicap Direct Growth | 9.55% | 11.58% | 13.86% |
| Reliance Capital Builder Fund II Ser B Direct Growth | 2.62% | 18.10% | NA |
| Sundaram Value Fund Sr II Direct Growth | -15.30% | NA | NA |
| SBI Equity Opportunities Fund Series IV Direct Growth | -15.30% | NA | NA |
| IDFC Focused Equity Direct Growth | -0.71% | 10.44% | 8.48% |
| ICICI Pru Multicap Direct Growth | 0.82% | 7.77% | 10.48% |
Top 10 Rated Debt – Dynamic Bond Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Franklin India Dynamic Accrual Direct Growth | 10% | 9% | 10% |
| ICICI Pru All Seasons Bond Direct Growth | 11% | 8% | 10% |
| Kotak Dynamic Bond Direct Growth | 14% | 9% | 10% |
| DSP Strategic Bond Direct Plan Growth | 14% | 7% | 9% |
| DHFL Pramerica Dynamic Bond Direct Growth | 14% | 9% | 11% |
| Baroda Pioneer Dynamic Bond Direct Growth | 0% | 4% | 7% |
| UTI Dynamic Bond Direct Growth | -2% | 4% | 7% |
| SBI Dynamic Bond Direct Growth | 15% | 9% | 10% |
| L&T Flexi Bond Direct Growth | 13% | 8% | 10% |
| Quantum Dynamic Bond Direct Growth | 12% | 8% | NA |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Debt – Liquid Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| IDBI Liquid Direct Growth | 8% | 7% | 8% |
| BNP Paribas Liquid Direct Growth | 8% | 7% | 8% |
| Baroda Pioneer Liquid Direct Growth | 7% | 7% | 8% |
| DSP Liquidity Direct Growth | 7% | 7% | 8% |
| Franklin India Liquid Direct Growth | 7% | 7% | 8% |
| HSBC Cash Direct Growth | 7% | 7% | 8% |
| Edelweiss Liquid Direct Growth | 7% | 7% | 7% |
| Reliance Liquid Fund Growth | 7% | 7% | 8% |
| Sundaram Money Direct Growth | 7% | 7% | 8% |
| UTI Liquid Cash Inst Direct Growth | 7% | 7% | 8% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Debt – Short Duration Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Franklin India ST Income Direct Growth | 9% | 9% | 9% |
| Baroda Pioneer Short Term Bond Direct Growth | 10% | 9% | 9% |
| Indiabulls Short Term Direct Growth | 9% | 8% | 9% |
| DSP Short Term Direct Plan Growth | 11% | 8% | 9% |
| Aditya Birla SL Short Term Opportunities Direct Growth | 10% | 8% | 9% |
| ICICI Pru Short Term Direct Growth | 10% | 8% | 9% |
| DHFL Pramerica Short Maturity Direct Growth | 1% | 5% | 7% |
| BOI AXA Short Term Income Direct Growth | -13% | 0% | 4% |
| Principal Short Term Debt Direct Growth | 0% | 4% | 7% |
| Axis Short Term Direct Growth | 11% | 8% | 9% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 rated Debt – Medium Duration Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| SBI Magnum Medium Duration Direct Growth | 12% | 9% | 10% |
| Axis Strategic Bond Direct Growth | 8% | 8% | 10% |
| Franklin India Income Opportunities Direct Growth | 9% | 9% | 9% |
| DSP Bond Direct Growth | 3% | 5% | 8% |
| Kotak Medium Term Direct Growth | 8% | 7% | 9% |
| Reliance Strategic Debt Direct Growth | 0% | 4% | 7% |
| UTI Medium Term Direct Growth | 8% | 7% | NA |
| Aditya Birla SL Medium Term Direct Growth | 7% | 7% | 9% |
| Indiabulls Income Direct Growth | 10% | 8% | 10% |
| ICICI Pru Medium Term Bond Direct Growth | 9% | 7% | 9% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Debt – Medium to Long Duration Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| ICICI Pru Advisor Series-Debt Management Direct Growth | 9% | 8% | 10% |
| SBI Magnum Income Direct Growth | 12% | 8% | 9% |
| UTI Bond Direct Growth | 3% | 2% | 6% |
| IDFC Bond Income Direct Growth | 15% | 8% | 10% |
| Canara Robeco Income Direct Growth | 13% | 8% | 9% |
| Reliance Income Direct Growth | 15% | 8% | 10% |
| Aditya Birla SL Income Direct Growth | 6% | 9% | 10% |
| Tata Income Direct Growth | 11% | 7% | 9% |
| Kotak Bond Direct Growth | 13% | 6% | 9% |
| HDFC Income Direct Growth | 11% | 5% | 8% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Debt – Gilt Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Reliance Gilt Securities Direct Growth | 17% | 10% | 12% |
| ICICI Pru Gilt Direct Growth | 12% | 7% | 10% |
| Aditya Birla SL Government Securities Direct Growth | 16% | 8% | 11% |
| Canara Robeco Gilt Direct Growth | 13% | 8% | 10% |
| L&T Gilt Direct Growth | 13% | 7% | 10% |
| SBI Magnum Gilt Direct Growth | 16% | 9% | 11% |
| UTI Gilt Direct Growth | 15% | 9% | 11% |
| Kotak Gilt Inv Direct Growth | 15% | 8% | 10% |
| DSP Government Securities Direct Growth | 17% | 8% | 10% |
| IDFC GSF Investment Direct Growth | 21% | 11% | 11% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Rated Hybrid – Dynamic Asset Allocation Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Aditya Birla SL Balanced Advantage Direct Growth | 8% | 8% | 10% |
| HDFC Balanced Advantage Direct Growth | 6% | 9% | 9% |
| HSBC Dynamic Asset Allocation Direct Growth | 0% | 10% | 11% |
| ICICI Prudential Balanced Advantage Direct Growth | 10% | 9% | 11% |
| SBI Dynamic Asset Allocation Direct Growth | 3% | 9% | NA |
| Invesco India Dynamic Equity Direct Growth | 7% | 10% | 10% |
| DSP Dynamic Asset Allocation Fund Direct Growth | 11% | 8% | 9% |
| Franklin India Dynamic PE Ratio FoF Direct Growth | 6% | 8% | 9% |
| L&T Dynamic Equity Direct Growth | 7% | 7% | 8% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Ranked Hybrid – Conservative Hybrid Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| ICICI Pru Advisor Series-Thematic Direct Growth | -5% | 5% | NA |
| DSP Regular Savings Direct Plan Growth | 9% | 7% | 7% |
| Tata Retirement Savings Conservative Direct Growth | 10% | 8% | 10% |
| Aditya Birla SL Regular Savings Direct Growth | 7% | 6% | 10% |
| Kotak Asset Allocator Direct Growth | 10% | 9% | 9% |
| Axis Hybrid Series 24 Direct Growth | 8% | 10% | NA |
| BNP Paribas Conservative Hybrid Direct Growth | 7% | 8% | 10% |
| DHFL Pramerica Hybrid Debt Direct Growth | 6% | 8% | 8% |
| Franklin India Life Stage FoF 40s Direct Growth | 6% | 7% | 9% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Ranked Hybrid – Aggressive Hybrid Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Principal Hybrid Equity Fund Direct Growth | 0% | 10% | 11% |
| Mirae Asset Hybrid Equity Direct Growth | 10% | 12% | NA |
| Tata Retirement Savings Moderate Direct Growth | 10% | 11% | 13% |
| ICICI Pru Equity & Debt Growth | 4% | 9% | 11% |
| Sundaram Equity Hybrid Direct Growth | 8% | 10% | 10% |
| HDFC Hybrid Equity Direct Growth | 8% | 9% | 11% |
| Reliance Equity Hybrid Direct Growth | -1% | 7% | 9% |
| Canara Robeco Equity Hybrid Direct Growth | 9% | 10% | 11% |
| ICICI Pru Child Care Gift Direct | 4% | 7% | 8% |
| DSP Equity & Bond Direct Growth | 15% | 9% | 12% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.
Top 10 Ranked Hybrid – Arbitrage Funds
| Scheme Name | 1-Year Return | 3-Year Return | 5-Year Return |
| Axis Arbitrage Direct Growth | 7% | 7% | 7% |
| Reliance Arbitrage Direct Growth | 7% | 7% | 7% |
| Edelweiss Arbitrage Direct Growth | 7% | 7% | 7% |
| ICICI Pru Equity Arbitrage Direct Growth | 7% | 7% | 7% |
| Indiabulls Arbitrage Direct Growth | 7% | 7% | NA |
| Kotak Equity Arbitrage Direct Growth | 7% | 7% | 7% |
| L&T Arbitrage Opportunities Direct Growth | 7% | 7% | 7% |
| IDFC Arbitrage Direct Growth | 7% | 7% | 7% |
| Aditya Birla SL Arbitrage Direct Growth | 7% | 7% | 7% |
| Invesco India Arbitrage Direct Growth | 6% | 7% | 7% |
*The data is for illustrative purposes only and subject to periodic change. Returns data is based on NAV of each scheme’s regular growth variant as on 3rd Oct 2019.