Investing in mutual funds is one of the best ways to grow wealth over the long term. Whether you’re looking for equity, debt, hybrid, or index funds, choosing the right mutual fund depends on your risk appetite, financial goals, and investment horizon.
In this guide, we’ll explore the best mutual funds in 2024 across different categories, along with their performance, expense ratios, and key features.
Best Mutual Funds in India (2024) – Category-wise
1. Best Large-Cap Mutual Funds (Stable Returns, Lower Risk)
These funds invest in top 100 companies by market cap (e.g., Reliance, TCS, HDFC Bank).
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR | 5-Year CAGR |
|---|---|---|---|---|
| Mirae Asset Large Cap | 0.41% | 22.5% | 18.3% | 15.8% |
| SBI BlueChip Fund | 0.76% | 20.8% | 17.2% | 14.9% |
| ICICI Pru Bluechip | 0.82% | 19.6% | 16.5% | 14.2% |
✅ Best for: Conservative investors seeking steady growth.
2. Best Mid-Cap Mutual Funds (High Growth Potential)
Invests in companies ranked 101-250 by market cap (e.g., Persistent Systems, Trent).
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR | 5-Year CAGR |
|---|---|---|---|---|
| HDFC Mid-Cap Opp. | 0.78% | 34.2% | 24.5% | 20.1% |
| Kotak Emerging Equity | 0.70% | 32.8% | 23.7% | 19.5% |
| Axis Midcap Fund | 0.65% | 31.5% | 22.9% | 18.8% |
✅ Best for: Investors with moderate risk tolerance (5+ years horizon).
3. Best Small-Cap Mutual Funds (High Risk, High Reward)
Invests in companies beyond top 250 (e.g., Suzlon, IRB Infra).
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR | 5-Year CAGR |
|---|---|---|---|---|
| Quant Small Cap | 0.58% | 38.2% | 28.5% | 25.4% |
| Nippon India Small Cap | 0.78% | 35.6% | 26.8% | 23.9% |
| HDFC Small Cap | 0.88% | 32.4% | 24.3% | 21.7% |
✅ Best for: Aggressive investors (7+ years horizon).
4. Best Flexi-Cap Funds (Diversified Equity Exposure)
Invests across large, mid, and small caps based on market conditions.
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR | 5-Year CAGR |
|---|---|---|---|---|
| Parag Parikh Flexi Cap | 0.58% | 27.5% | 20.1% | 18.3% |
| SBI Flexicap Fund | 0.76% | 25.8% | 19.2% | 17.5% |
| UTI Flexi Cap | 0.82% | 24.6% | 18.5% | 16.8% |
✅ Best for: Investors wanting flexibility in market cap allocation.
5. Best Index Funds & ETFs (Low-Cost Passive Investing)
Tracks Nifty 50, Sensex, or other indices.
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR | 5-Year CAGR |
|---|---|---|---|---|
| UTI Nifty 50 Index | 0.10% | 20.1% | 15.2% | 13.8% |
| HDFC Sensex Index | 0.15% | 19.8% | 14.9% | 13.5% |
| ICICI Pru Nifty Next 50 | 0.20% | 25.4% | 18.3% | 16.2% |
✅ Best for: Passive investors seeking low-cost, long-term wealth creation.
6. Best Debt Funds (Low-Risk, Stable Returns)
Invests in bonds, government securities, and corporate debt.
| Fund Name | Expense Ratio | 1-Year Return | 3-Year CAGR |
|---|---|---|---|
| SBI Magnum Gilt Fund | 0.45% | 8.2% | 7.5% |
| ICICI Pru Corporate Bond | 0.35% | 7.8% | 7.2% |
| HDFC Short-Term Debt | 0.50% | 7.5% | 7.0% |
✅ Best for: Risk-averse investors or parking emergency funds.
How to Choose the Best Mutual Fund?
- Define Your Goal (Retirement, Child’s Education, House Purchase)
- Check Risk Appetite (Equity vs. Debt vs. Hybrid)
- Look at Past Performance (3-5 Year CAGR, not just 1-year)
- Compare Expense Ratios (Lower = Better)
- Check Fund Manager’s Track Record
Conclusion
- For High Growth: Small-cap & mid-cap funds (Quant, HDFC Mid-Cap).
- For Stability: Large-cap & index funds (Mirae Large Cap, UTI Nifty 50).
- For Balanced Risk: Flexi-cap & hybrid funds (Parag Parikh Flexi Cap).
- For Safety: Debt funds (SBI Magnum Gilt).
Diversify across 2-3 fund categories for optimal returns.
⚠️ Disclaimer
Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Always read the Scheme Information Document (SID) before investing. Consult a financial advisor if needed. This is not investment advice.
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