Best Mutual Funds in India in 2024 (2024)

Overview of the Best Mutual Funds in India in 2024 (as per 3Y Returns)

Here is a brief overview of the above-mentioned top mutual funds in India:

• Aditya Birla Sun Life PSU Equity Fund Direct-Growth

• The fund has ₹3,403.63 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.50%.
• It is a very high-risk fund that invests heavily in equities, with a significant portion of 57.47% allocated to large-cap stocks, followed by 16.97% in mid-cap stocks and 10.98% in small-cap stocks.
• It has invested in the State Bank of India, Bank of India, Bank of Baroda, ONGC, NTPC, Coal India Limited, Power Grid Corporation of India, GAIL (India), BHEL and IREDA.

• SBI PSU Direct Plan-Growth

• The fund has ₹1,875.84 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.92%.
• It allocates 91.05% of its investments to equities, with 39.26% in large-cap stocks, 25.88% in mid-cap stocks and 17.91% in small-cap stocks.
• The fund invests in NHPC, NTPC, Indian Bank, State Bank of India, Canara Bank, NMDC, Indian Oil Corporation, BHEL, Oil India, Hindustan Aeronautics, ONGC, etc.

• ICICI Prudential Infrastructure Direct Growth

• The fund has ₹5,186.46 crores worth of AUM as of March 31, 2024, and an expense ratio of 1.03%.
• It invests 91.47% of its assets in equities, with 43.17% in large-cap stocks, 12.01% in mid-cap stocks, and 15.43% in small-cap stocks. Additionally, it allocates 0.92% to debts.
• The fund’s holdings include NTPC, HDFC Bank, ICICI Bank, Larsen & Toubro Limited, Interglobe Aviation Limited, Gujarat Gas Limited, Oberoi Realty Limited and more.

• HDFC Infrastructure Direct Plan-Growth

• The fund has ₹1,663.37 crores worth of AUM as of March 31, 2024, and an expense ratio of 1.24%.
• Its fund invests 85.78% of its assets in domestic equities, with 32.83% in large-cap stocks, 6.58% in mid-cap stocks, and 27.04% in small-cap stocks.
• The company’s holdings include ICICI Bank, State Bank of India, J Kumar Infraprojects Limited, Coal India Limited, Larsen & Toubro Limited, AIA Engineering, GR Infraprojects Limited, NTPC, Kalpataru Projects International Limited, etc.

• Quant Infrastructure Fund Direct-Growth

• The fund has ₹2,498.18 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.73%.
• It invests 90.72% of its assets in equities, with 25.78% in large-cap stocks, 23.72% in mid-cap stocks, 23.56% in small-cap stocks and 5.4% in debt.
• Its holdings include Reliance Industries Limited, Steel Authority of India, Adani Power Limited, Tata Power Company, Swan Energy and Kalyani Steels Limited.

• Aditya Birla Sun Life Medium Term Plan Direct-Growth

• The fund has ₹1,863.18 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.85%.
• Its fund invests 93.98% of its assets in debt, with 46.21% allocated to government securities and 44.01% in low-risk securities.
• The fund's top holdings include investments in GOI, National Bank For Agriculture & Rural Development, Belstar Microfinance Private Limited, JM Financial Credit Solutions Limited, LIC Housing Finance Limited, Avanse Financial Services Limited, etc.

• Bank of India Short-Term Income Fund Direct-Growth

• The fund has ₹82.58 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.50%.
• It allocates 73.02% of its assets to debt, with 39.77% invested in government securities and 26.98% in low-risk securities.
• The fund’s holdings include investments in the National Bank For Agriculture and Rural Development, Power Grid Corporation of India Limited, Power Finance Corporation Limited, Axis Bank, REC Limited, TREPS and Reliance Jio Infocomm Limited.

• UTI Credit Risk Fund Direct-Growth

• The fund has ₹395.91 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.91%.
• It has allocated 187.02% of its assets to debt, 151.52% to low-risk securities and 35.5% invested in government securities.
• The fund's major investments include holdings in Godrej Industries Limited, Tata Motors Limited, Piramal Capital & Housing Finance Limited, Aditya Birla Fashion and Retail Limited, Tata Projects Limited, etc.

• UTI Dynamic Bond Fund Direct-Growth

• The fund has ₹382.86 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.71%.
• Its fund allocates 166.04% of its assets to debt, with 134.3% invested in government securities and 31.74% in low-risk securities.
• The fund's major holdings include investments in Power Finance Corporation Limited, Clearing Corporation of India and REC Limited.

• Nippon India Strategic Debt Fund Direct-Growth

• The fund has ₹119.93 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.51%.
• It invests 92.55% of its assets in debt, with 34.77% allocated to government securities and 57.78% in low-risk securities.
• Its major holdings include Reliance Jio Infratel Private Limited, Pipeline Infrastructure (India) Private Limited, Manappuram Finance Limited and Godrej Properties Limited.

• Quant Multi Asset Fund Direct-Growth

• The fund has ₹1829.08 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.76%.
• It invests 65.84% in equities, comprising 19.77% in large-cap stocks, 17.03% in mid-cap stocks and 8.23% in small-cap stocks. Additionally, it invests 6.89% in debt including 4.2% in government securities and 2.69% in low-risk securities.
• The fund’s holdings include JIO Financial Services Limited, Hindalco Industries Limited, Reliance Industries Limited, Bharat Highways InvIT, Orchid Pharma Limited, Adani Power Limited, etc.

• ICICI Prudential Equity & Debt Fund Direct-Growth

• It has ₹3,3502.19 crores worth of AUM as of March 31, 2024, and an expense ratio of 1.02%.
• The fund allocates 74% of its investments to equities, including 56.33% in large-cap stocks, 6.56% in mid-cap stocks and 2.15% in small-cap stocks. It also has 19.71% of investments in debt, which consists of 11.8% in government securities and 6.8% in low-risk securities.
• Its holdings include investments in Bharti Airtel Limited, ONGC, HDFC Bank, NTPC, Maruti Suzuki India Limited and more.

• HDFC Balanced Advantage Fund Direct Plan-Growth

• It has ₹79,875.08 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.74%.
• The fund invests 67.38% in equities, with 43.09% in large-cap stocks, 6.68% in mid-cap stocks and 7.4% in small-cap stocks. Additionally, it allocates 27.75% to debt, including 15.31% in government securities and 11.99% in low-risk securities.
• Its holdings include HDFC Bank, Coal India Limited, ICICI Bank, NTPC, ITC Limited, Tata Consultancy Services Limited, GAIL (India), etc.

• JM Aggressive Hybrid Fund Direct-Growth

• The fund has ₹222.76 crores worth of AUM as of March 31, 2024, and an expense ratio of 0.60%.
• It invests 75.11% of its assets in equities, with 35.05% in large-cap stocks, 13.43% in mid-cap stocks and 14.56% in small-cap stocks. Additionally, it allocates 19.48% to debts.
• The fund holds significant investments in ICICI Bank, Bank of Baroda, Infosys Limited, Larsen & Toubro Limited, Bharti Airtel Limited, Hero Motocorp Limited, Bajaj Auto Limited, etc.

• Bank of India Mid & Small Cap Equity & Debt Fund Direct-Growth

• It has ₹665 crores worth of AUM as of March 31, 2024, and an expense ratio of 1.22%.
• The fund invests 77% in inequities, consisting of 46.77% in mid-cap stocks and 30.23% in small-cap stocks. Additionally, it allocates 20.42% to debt, including 6.02% in government securities and 14.4% in low-risk securities.
• Its holdings include Jindal Stainless Limited, GOI, Oil India Limited, IRFC, JK Cement Limited, Indus Towers Limited, Clearing Corporation of India Limited, etc.

Factors to Consider Before Investing in the Mutual Funds in India

Before you put your money into the mutual fund scheme, it is crucial to consider these points to make the most of your investment:

• Clarify Your Investment Goals

Understand what you want to achieve with your investment. This will help you pick the best-performing mutual fund that suits your goals and aligns with how much risk you are comfortable taking.

• Understand Your Investment Duration

Your investment goals and how long you plan to invest are closely linked. Before diving in, evaluate how long you are willing to keep your money tied up in the fund. Typically, investing for the long term is key to reaching your expected returns while minimising risks.

• Check Past Performance

Before committing your money, examine how the fund has performed in the past. Compare its performance to benchmarks and similar funds to understand its potential for future returns. This way, you can choose a fund with a track record of delivering decent returns with manageable risks.

• Evaluate the Fund Manager's Experience

Make sure to assess the qualifications and track record of the fund managers, including their past performance and ability to outperform or match benchmark indices. Consider whether the fund managers have consistently delivered results and if their management style is active or passive.

• Know the Net Asset Value (NAV)

The NAV reflects the market value of each unit of the mutual fund. Keep in mind that funds with higher NAVs are pricier and might offer lower returns compared to those with lower NAVs. However, higher NAV funds often invest in more reliable assets like quality bonds and stocks.

• Consider Expense Ratio

Fund managers handle the market research and management of your investments, and they charge fees for their services known as the expense ratio. Look for mutual funds with lower expense ratios to keep charges minimal and maximise your returns.

• Assess Your Risk Tolerance

Mutual funds involve some level of risk, which can vary based on the type of mutual funds you choose. Make sure you are comfortable with the level of risk associated with your chosen funds, as they are susceptible to market ups and downs.

• Understand Exit Loads

Some mutual funds impose exit loads if you withdraw your investment prematurely. It is essential to check whether the schemes you are interested in have any exit loads and understand the implications of withdrawing early.

The Bottom Line

Overall, investing in top mutual funds in India offers you various advantages tailored to your needs. With its features, mutual funds provide a convenient and accessible avenue for wealth creation.

Investing in mutual funds is a smart move towards building a diversified investment portfolio while mitigating risks and maximising returns. However, it is immensely important to note that mutual funds are subject to market risk. You should make an investment choice depending on your risk tolerance and investment appetite. You can also consult a financial advisor to help you make investment decisions.