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Which are the 5 Best Mutual Funds in India for 2024?
Which is the Best Mutual Fund in India for 2024?
Investing in mutual funds can be an excellent way to grow your wealth over the long term. To help you make informed investment decisions for 2024, we have identified five top mutual funds in India based on their historical performance and investment objectives. These funds cover a range of sectors and investment styles to suit different risk appetites and financial goals. Read on to know about the best mutual funds in India that are going to be the top choices in 2024.
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Which are the 5 Best Mutual Funds in India for 2024?
Here are the 5 best mutual funds in India that you can consider investing on in the year 2024:
1. Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan
The Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan, launched on November 7, 2008, is designed for long-term capital growth through investments in agri-commodity companies’ stocks and overseas mutual funds sharing similar objectives.
With a historical CAGR/Annualized Return of 9%, it bears a high level of risk but has delivered promising returns, such as 7.7% in 2022 and 32.7% in 2021.
This fund offers a valuable opportunity to diversify your portfolio by gaining exposure to the global agriculture sector, making it a compelling choice for investors seeking potential growth despite the associated risk.
Read on 5 Best Mutual Funds for SIP 2023.
2. UTI Healthcare Fund
UTI Healthcare Fund, launched on June 28, 1999, aims for capital appreciation through investments in pharmaceutical and healthcare sector equities and related instruments. This mutual fund comes with a high-risk profile but boasts a commendable CAGR of 14.1% since inception.
Despite a -12.3% return in 2022, it delivered a strong 19.1% in 2021 and a remarkable 67.4% in 2020. As of August 22, 2023, its NAV stands at ₹183.564.
Investors might find it appealing due to its focus on the expanding healthcare industry, offering the potential for long-term capital growth, although it comes with historical volatility.
3. TATA Mid Cap Growth Fund
TATA Mid Cap Growth Fund, launched on July 1, 1994, primarily invests in mid-cap stocks with the aim of providing income distribution and long-term capital gains. It carries a moderately high level of risk but has demonstrated a commendable CAGR/Annualized Return of 12.4% since inception.
While its 2022 return was 0.6%, it posted an impressive 40% return in 2021 and a solid 24.3% return in 2020. As of August 22, 2023, its NAV stands at ₹304.899. Investors might find this mutual fund appealing due to its focus on mid-cap stocks, known for their growth potential, and its historical track record of delivering robust long-term returns.
4. Taurus Discovery (Midcap) Fund
The Taurus Discovery (Midcap) Fund, launched on September 5, 1994, primarily seeks to uncover undervalued mid-cap and small-cap stocks with growth potential.
With a moderately high risk profile, the mutual fund has delivered a respectable CAGR/Annualized Return of 8.1% since its inception. Notably, in 2022, it provided a return of 6.7%, and in 2021, it delivered an impressive 32.7% return. Its 2020 return stood at a commendable 25.5%.
As of August 22, 2023, the fund’s NAV is ₹94.35. Investors looking for the potential of significant capital appreciation may find this fund appealing, particularly due to its focus on undervalued stocks in the mid-cap and small-cap segments.
5. TATA India Pharma & Healthcare Fund
TATA India Pharma & Healthcare Fund, launched on December 28, 2015, aims for long-term capital appreciation through investments primarily in Indian pharmaceutical and healthcare sector-related equities.
While it comes with a high level of risk, it has displayed a commendable CAGR/Annualized Return of 9.6% since inception. In recent years, its performance has been a mix of volatility with a return of -8% in 2022, a notable 19.1% in 2021, and an impressive 64.4% in 2020.
As of August 22, 2023, its NAV stands at ₹20.1972. Investors may find this mutual fund appealing due to its potential to tap into the promising growth prospects of the Indian pharmaceutical and healthcare sectors, despite occasional fluctuations, as it has delivered robust long-term returns.
Which is the Best Mutual Fund in India for 2024?
The answer probably lies in a comparison of the five mutual funds mentioned based on various parameters, in order to make a more comprehensive evaluation:
1. Objective
- Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan: Seeks growth through agri-commodity companies’ stocks and similar overseas mutual funds.
- UTI Healthcare Fund: Aims for capital appreciation by investing in pharmaceutical and healthcare sector equities.
- TATA Mid Cap Growth Fund: Focuses on mid-cap stocks for income distribution and long-term capital gains.
- Taurus Discovery (Midcap) Fund: Targets undervalued mid-cap and small-cap stocks with growth potential.
- TATA India Pharma & Healthcare Fund: Aims for long-term capital appreciation through investments in Indian pharmaceutical and healthcare sector equities.
2. Risk Profile
- Aditya Birla Sun Life Commodity Equities Fund: High risk.
- UTI Healthcare Fund: High risk.
- TATA Mid Cap Growth Fund: Moderately High risk.
- Taurus Discovery (Midcap) Fund: Moderately High risk.
- TATA India Pharma & Healthcare Fund: High risk.
3. Historical CAGR/Annualized Return
- Aditya Birla Sun Life Commodity Equities Fund: 9%.
- UTI Healthcare Fund: 14.1%.
- TATA Mid Cap Growth Fund: 12.4%.
- Taurus Discovery (Midcap) Fund: 8.1%.
- TATA India Pharma & Healthcare Fund: 9.6%.
4. Recent Performance
- Aditya Birla Sun Life Commodity Equities Fund: 7.7%.
- UTI Healthcare Fund: -12.3%.
- TATA Mid Cap Growth Fund: 0.6%.
- Taurus Discovery (Midcap) Fund: 6.7%.
- TATA India Pharma & Healthcare Fund: -8%.
5. Diversification
- Aditya Birla Sun Life Commodity Equities Fund: Offers global exposure to the agriculture sector.
- UTI Healthcare Fund: Focuses on pharmaceutical and healthcare companies.
- TATA Mid Cap Growth Fund: Emphasizes mid-cap stocks.
- Taurus Discovery (Midcap) Fund: Seeks undervalued mid-cap and small-cap stocks.
- TATA India Pharma & Healthcare Fund: Targets Indian pharmaceutical and healthcare sectors.
6. NAV (as of August 22, 2023)
- Aditya Birla Sun Life Commodity Equities Fund: ₹35.7925.
- UTI Healthcare Fund: ₹183.564.
- TATA Mid Cap Growth Fund: ₹304.899.
- Taurus Discovery (Midcap) Fund: ₹94.35.
- TATA India Pharma & Healthcare Fund: ₹20.1972.
7. Investor Appeal
Aditya Birla Sun Life Commodity Equities Fund: Provides global diversification despite its risk.
UTI Healthcare Fund: Appeals to those bullish on the healthcare sector.
TATA Mid Cap Growth Fund: Targets mid-cap stocks known for growth potential.
Taurus Discovery (Midcap) Fund: Attracts investors seeking undervalued stocks.
TATA India Pharma & Healthcare Fund: Taps into India’s healthcare sector potential.
Ultimately, the choice among these mutual funds depends on your risk tolerance, investment goals, and your view on the sectors they focus on. It is advisable to consult with a financial advisor before making any investment decisions.
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Conclusion
Selecting the right mutual funds for your portfolio requires careful consideration of your financial goals, risk tolerance, and investment horizon. While historical performance is a valuable metric, it is essential to consult with a financial advisor and perform due diligence before making any investment decisions. Diversifying your investments across multiple mutual funds can also help spread risk and optimize returns. Always remember that past performance is not indicative of future results, and market conditions can change.
