Top 5 Best Mutual Fund to Invest in India 2020

As India goes into Lockdown 4.0 and economic activities around the country begin to resume, a lot of us have been thinking about how to best manage our money for the future? As most of us are aware, investing in mutual funds is one of the safest and most reliable ways to grow our wealth over time while satisfying our urge for moderate risks and rewards. But which is the best mutual fund to invest, is a common question in all our minds.  

Due to the COVID-19 pandemic, some of the best mutual fund to invest have taken a hit, mainly because economic activity around the globe and especially in India have seen a halt. But in the past couple of days, as economic activity in certain parts of India have begun to resume a few mutual funds have gained back their pace, although it will take a long time for them to come back to their past glory. In these tough times, as there are layoffs and pay cuts all around us, it is only natural that our markets will also suffer, but that in no way indicates that all hope is lost.

As I write this blog post on 18th May, 2020 Lockdown 4.0 has begun in India and as per my research, mentioned below are the top 5 performing best mutual fund to invest money in. However do note that all these mutual funds have reported significant high returns in the past and their performance has been severely affected by the nationwide lockdown and now as relaxations begin to get imposed, these are some of the best mutual fund to invest that are acquiring back their grounds at the highest pace.

Axis Bluechip Fund Direct Plan Growth

Fund at a Glance

• Type of Fund: Large Cap Fund
• Asset Type: Equity
• Risk Assessment: Moderately High Risk
• Nav: ?28.81 as of 15th May, 2020
• Rating: 5 star
• Minimum Investment: ?5000 for Lumpsum and ?500 for SIP
• Returns: All time 12.3%
• Expense Ratio: 0.46%

Top 5 Holdings

1. Avenue Supermarkets Ltd.
2. Kotak Mahindra Bank Ltd.
3. Infosys Ltd.
4. ICICI Bank Ltd.
5. Tata Consultancy Services Ltd.

Fund Brief

With a fund size of more than ?12,716 crore INR this is one of the largest equity mutual funds in India. The fund is considered to be moderately high risk and thus an investment portfolio of average 5 to 10 years is suggested across the board. The Axis Bluechip fund direct plan growth is managed by Axis Asset Management Ltd and was started in the year 2009 and is one of the best mutual fund to invest in 2020.

Asset Management Company (AMU) Brief

The company was founded by Axis Bank Limited on 4th September, 2009 and incorporated on 13th January, 2010. Axis Bank is the third largest private sector bank in India and Axis Mutual Fund is the investment group of the corporation. As of 2020, the Asset Management Company managed around ?89,700 crore INR of assets. The AMU (Asset Management Company) is privately held, where 74.99% stake is owned by Axis Bank and the rest 24% by Schroder Singapore Holdings Private Limited. The company is present in more than 90 cities in India and provides around 170 investment schemes for various wealth goals.

Pros and Cons of Axis Bluechip Fund Direct Plan Growth

Pros

• Risk is lower as compared to other benchmark funds.
• Lower expense ratio
• 1 year returns are higher than benchmark
• 3 year returns are higher than benchmark

Cons

• Due to the recent fall in market trends, the five year return of this fund is significantly lower as compared to the benchmark.

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Parag Parikh Long Term Equity Fund Direct Growth

Fund at a Glance

• Type of Fund: Multi Cap Fund
• Asset Type: Equity
• Risk Assessment: Moderately High Risk
• Nav: ?24.87 as of 15th May, 2020
• Rating: 5 star
• Minimum Investment: ?1000 for Lumpsum and ?1000 for SIP
• Returns: All time 14.0%
• Expense Ratio: 1.15%

Top 5 Holdings

1. Amazon.com Inc. (USA)
2. Alphabet Inc Class C
3. Facebook Co
4. Bajaj Holdings & Investment Ltd.
5. Hero Motocorp Ltd.

Fund Brief

The Parag Parikh Long Term Equity Fund Direct Growth has a total fund size of ?2925 Crore INR as of May, 2020 and is managed by PPFAS Mutual Funds which is the Asset Management Company. The fund manager of PPFAS include Rajeev Thakur, Raunak Onkar and Raj Mehta. Considering the all-time high return of PPFAS mutual fund, it can undoubtedly be regarded as one of the best mutual fund to invest now.

Asset Management Company (AMU) Brief

PPFAS Mutual Fund was established in 2012 and the fund continued to remain behind the scenes for some time. The AMC is registered and operated as a trust under the Indian Trust Act of 1882. The fund is registered for trading at SEBHI with the registration code MF/069/12. As of the May, 2020 the company manages a total of ?2925 Crore INR and offers 6 different schemes to its clients and customers. One of the most striking aspects of this fund which makes it unique is its investment strategy which is very different from other Asset Management Companies in the market; for example PPFAS offers only one equity scheme to its customers where as other AMCs regularly have more equity offerings in their list.

Pros and Cons of Parag Parikh Long Term Equity Fund Direct Growth

Pros

• Expense ratio is much lower as compared to other funds in the market.
• 1 year returns have been consistently higher than the benchmark.

Cons

• Risk adjusted returns are lower in comparison to other funds in the category.
• Risk is relatively higher than the benchmark.
• 3 year returns are consistently lower than the benchmark.
• 5 year returns are consistently lower than the benchmark.

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