Photo courtesy Chris Liverani on Unsplash.
The Indian economy is recovering from the effects of the COVID-19 induced slowdown and the stock markets have been on a roll for almost 18 months now. The regime of low interest, good corporate and economic growth is likely to keep the stock markets on an upswing for the foreseeable future.
The boom in the stock market has encouraged millions of new investors to open Demat accounts. These are the DIY investors who like to invest the money themselves. But if you don’t have knowledge of how the stock market functions it is better to invest through mutual funds. The fund managers who have been in this industry for many years would be able to generate good returns for your invested money. We have discussed the best mutual funds for 2022.
The growth of mutual fund industry-
- The mutual fund industry in India started in 1963 with the formation of UTI.
- In 1987 the public sector banks and LIC & GIC were allowed to set up mutual funds.
- 1993 marked the beginning of the private sector mutual funds.
- The assets under management of the Indian Mutual fund industry has grown from Rs. 6.82 lakh crore in November 2011 to Rs. 37.34 lakh crore in November 2021, which is more than a 5 fold increase in 10 years.
- The mutual fund industry crossed 10 crore folios (accounts) in May 2021 and as of November 2021 the folios stood at 11.70 crore.
A person can consider investing in the following mutual funds in the year 2022-
1) Canara Robeco Bluechip Equity Fund-
Category- Large Cap fund.
Fund House- Canara Robeco Mutual Fund.
Launch date- 26-August 2010.
Fund Managers –Vishal Mishra and Shridatta Bhandwaldar.
Benckmark- S&P BSE 100 TRI.
Fund Size – 5208 crore.
Min Investment amount(one-time first time) – Rs 5000.
Min. SIP amount – Rs 1000.
Returns- The return of the fund in the last 5 years is 19.47%, for 10 years it is 15.95%.
Since its inception, the fund has given a return of 13.3%.
The fund has a 96.5% investment in Indian stocks (73.95% in large-cap and 9.76% in mid-cap stocks). It is suitable for investors who are looking to invest money for at least 3-4 years.
2) Franklin India Bluechip Fund-
Category – Large Cap Fund.
Fund House – Franklin Templeton Mutual Fund.
Launch date- 1 December 1993.
Fund Managers- Sandeep Manam, Anand Radhakrishnan, R. Janakiraman, Venkatesh Sanjeevi.
Benchmark- Nifty 100.
Fund Size – 6620 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 500.
Returns- The return of the fund in the last 5 years is 14.25%, for 10 years it is 14.06%
Since its inception, the fund has given a return of 20.02%.
The fund is suitable for investors who are looking to invest money for at least 3-4 years.
3) Kotak Equity Opportunities Fund-
Category – Large & Mid Cap Fund.
Fund House – Kotak Mahindra Mutual Fund.
Launch date- 9 September 2004.
Fund Manager- Harsh Upadhyaya.
Benchmark- Nifty 50.
Fund Size – 8163 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 1000.
Returns- The return of the fund in the last 5 years is 17.25%, for 10 years it is 17.32%
Since its inception, the fund has given a return of 18.63%.
The fund has 95.11% investment in Indian stocks (48.79% in large-cap stocks, 30.47% in mid-cap stocks, and 10.84% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 3-4 years.
4) DSP Midcap Fund-
Category – Mid Cap Fund.
Fund House – DSP Mutual Fund.
Launch date- 14 November 2006.
Fund Manager- Resham Jain, Vinit Sambre, Jay Kothari
Benchmark- Nifty 50.
Fund Size – 13785 crore.
Min. Investment amount (one-time first time) – Rs 500.
Min. SIP amount – Rs 500.
Returns- The return of the fund in the last 5 years is 16.87%, for 10 years it is 20.46%
Since its inception, the fund has given a return of 15.61%.
The fund has 97.31% investment in Indian stocks (9.78 % in large-cap stocks, and 60.28% in mid-cap stocks, and 19.35% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 6-7 years.
5) Kotak Emerging Equity Fund-
Category – Mid Cap Fund.
Fund House – Kotak Mahindra Mutual Fund.
Launch date- 30 March 2007.
Fund Manager- Pankaj Tibrewal
Benchmark- Nifty 50.
Fund Size – 16705 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 1000.
Returns- The return of the fund in the last 5 years is 19.77%, for 10 years it is 22.55%
Since its inception, the fund has given a return of 14.26%.
The fund has 96.57% investment in Indian stocks (6.01 % in large-cap stocks, and 58.6% in mid-cap stocks, and 28.59% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 6-7 years.
6) ICICI Prudential Midcap Fund-
Category – Mid Cap Fund.
Fund House – ICICI Prudential Mutual Fund.
Launch date- 28 October 2004.
Fund Manager- Prakash Gaurav Goel.
Benchmark- Nifty 50.
Fund Size – 3138 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 100.
Returns- The return of the fund in the last 5 years is 16.9%, for 10 years it is 20.98%.
Since its inception, the fund has given a return of 17.56%.
The fund has 95.25% investment in Indian stocks (5.85 % in large-cap stocks, 46.6% in mid-cap stocks, and 26.73% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 6-7 years.
7) Canara Robeco Flexicap Fund-
Category – Flexi Cap Fund.
Fund House – Canara Robeco Mutual Fund.
Launch date- 16 September 2003.
Fund Manager- Shridatta Bhandwaldar.
Benchmark- S&P BSE 500 TRI.
Fund Size – 6168 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 1000.
Returns- The return of the fund in the last 5 years is 20.56%, for 10 years it is 16.62%
Since its inception, the fund has given a return of 18.62%.
The fund has 96.65% investment in Indian stocks (59.92 % in large-cap stocks, 14.24% in mid-cap stocks, and 6.08% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 4-5 years.
8) SBI Focused Equity Fund-
Category – Focused Fund.
Fund House – SBI Mutual Fund.
Launch date- 08 October 2004.
Fund Manager- Rama Iyer Srinivasan.
Benchmark- S&P BSE 500 TRI.
Fund Size – 23093 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 500.
Returns- The return of the fund in the last 5 years is 21.51%, for 10 years it is 20.38%
Since its inception, the fund has given a return of 20.53%.
The fund has 79.86% investment in Indian stocks (33.47 % in large-cap stocks, 25.59% in mid-cap stocks, and 6.91% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 5 years.
9) ICICI Prudential Focused Equity Fund-
Category – Focused Fund.
Fund House – ICICI Prudential Mutual Fund.
Launch date- 28 May 2009.
Fund Manager- Prakash Gaurav Goel.
Benchmark- S&P BSE 500 TRI.
Fund Size – 2426 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 100.
Returns- The return of the fund in the last 5 years is 15.58%, for 10 years it is 15.46%.
Since its inception, the fund has given a return of 13.43%.
The fund has 92.55% investment in Indian stocks (68.42 % in large-cap stocks, 5.98% in mid-cap stocks, and 6.81% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 5 years.
10) SBI Contra Fund-
Category – Contra Fund.
Fund House – SBI Prudential Mutual Fund.
Launch date- 06 May 2005.
Fund Manager- Dinesh Balachandran.
Benchmark- Nifty 50.
Fund Size – 3339 crore.
Min. Investment amount (one-time first time) – Rs 5000.
Min. SIP amount – Rs 500.
Returns- The return of the fund in the last 5 years is 18.38%, for 10 years it is 16.49%.
Since its inception, the fund has given a return of 16.25%.
The fund has 84.85% investment in Indian stocks (31.3 % in large-cap stocks, 9.55% in mid-cap stocks, and 30.79% in small-cap stocks). It is suitable for investors who are looking to invest money for at least 5 years.
The mutual funds discussed above have a long track record above 10 years and have faced both the bull and the bear markets. The schemes are in the large-cap, midcap, flexicap, and focused categories. These are among the best mutual funds for 2022 . A person can invest in these funds according to his financial goals and take the help of his financial advisor wherever required. Investment should be considered for the long term as time spent in the market is more important than timing the market. The power of compounding will do wonders for the portfolio if the funds are held for a long duration.