11 Mutual Fund Schemes Rated “5-star” By Morningstar

Here are a list of mutual funds that are rated 5-star by Morningstar. It's important to note these are not inclusive of all categories and schemes that are 5-star, but, just selective. There are several others where Morningstar has got a 5-star rating on.

Name of scheme	Rating	Category
Aditya Birla Sunlife Money Manager Fund	5-star	Money Market
Axis Midcap Direct	5-star	Midcap
Canara Robeco Bluechip Equity	5-star	Largecap
DSP Tax Saver	5-star	ELSS
Quant Tax Plan	5-star	ELSS
ICICI prudential Bluechip Fund	5-star	Largecap
JM Flexi Cap Fund	5-star	Flexicap Fund
Kotak Equity Savings	5-star	Equity Savings
Nippon India Small cap Fund	5-star	Small Cap
Parag Parikh Tax Saver	5-star	ELSS
Quant Large and Midcap fund	5-star	Large and Midcap

Which mutual fund scheme should you invest your money?

We normally avoid making a call on which mutual fund is the best for investors. We can just give some guidelines to help investors to make a choice. To begin with, if you are a risk averse investors, please stay away from small and midcap mutual fund schemes. The returns can be extremely volatile. The best way to go about invest in the current environment is to invest through SIPs. Most analysts believe that the markets are not cheap at the current levels and hence it is better advised to go through with SIPs. Investing in lumpsum has its own risks, which is why it is better to gradually invest in small amounts. Apart from this, at the moment, interest rates are also pretty decent, which makes a case for also partially investing in debt instruments.

In short, go for the SIP route and largely if you are risk averse, go for largecap mutual funds. With interest rates rising, money market mutual funds are also not a bad bet. We suggest that investors look to invest for a time frame of 5 to 10 years to help increase their wealth.

As we said before we do not recommend mutual funds based on rating or other things, as returns can be volatile and one fund that outperforms, could under perform later. Adopt a more disciplined approach by investing regularly to generate wealth.