SBI mutual fund, HDFC small-cap to Axis Bank long-term equity — expert reveals 5 best mutual funds for you

Best mutual funds for investing is one of the most asked questions of investors from their investment advisors, colleagues and kin. In a bid to meet investment goals, best mutual funds list is helpful to an extent. This makes it easier for investors to allocate funds and manage their portfolio in a proficient manner. According to the experts, SBI small-cap has been the top pick of mutual fund advisors while Mirae Asset Large Cap Fund, Kotak Emerging Equity Fund, Axis Long term equity fund and HDFC Small-cap fund have performed better over the last few years. 

Asked about the best mutual funds in the equity category where an investor can think of investing Balwant Jain, a Mumbai-based tax and investment expert said, "My favourite small-cap fund is SBI small-cap which was earlier known and SBI small and midcap fund. It was giving return of 2.38 per cent for one year, 13.62 per cent for three years period and 20.77 per cent for five years against 7.99 per cent, 7.08 per cent and  12.86 per cent  respectively as a category."

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On role of categories in equity mutual funds Manikaran Singh, a SEBI registered tax and investment expert said, "Equity mutual funds are of three types — small-cap, mid-cap and large-cap. Large-cap stocks have the largest volume and least movement while in mid-cap stocks, we observe higher volume than small-cap but lesser volume than large-cap and hence its movement is lesser than small-cap stocks and higher than large-cap stocks. Therefore, small-cap mutual funds have the highest movement, mid-cap mutual funds have lesser movement than small-cap but higher movement than large-cap while large-cap mutual funds have lest movement in these three types of equity mutual funds." However, he maintained that selection of the category completely depends upon the risk-appetite of the mutual fund investor. Manikaran advised mutual fund investors to go for long-term investment as it would give at least 12 per cent return on the investor's investment.

Asked about the top five choice in mutual fund plans Balwant Jain said that investors can think of investing in Mirae Asset Large Cap Fund. If they want to invest in large-cap; in mid-cap Jain advised Kotak emerging Equity Fund; in small-cap mutual funds he picked HDFC Small-cap fund and in Aggressive Hybrid Equity Fund, he picked ICICI Pru Equity and Debt fund. 

Source: Balwant Jain

For those mutual fund investors who want income tax exemption under the Section 80C, both Balwant Jain and Manikaran Singh advised ELSS Mutual funds suggesting Axis Long term equity fund as their top choice.