9 Best Equity Mutual Funds To Invest For 2020

How we have selected the equity mutual funds?

1) Past performance

We have selected the mutual funds based on their past. For this we have kept in mind their 3 to 5 year returns.

2) Ratings

Some institutions like Crisil and Value Research Online provide very reliable ratings, which we have kept in kind, before allocating these 9 equity mutual funds.

3) Quality of the portfolio

We have also kept the quality of the portfolio in mind. In fact, much of the weightage has been given to the same. Based on the above, we have arrived at these 9 best mutual fund schemes to invest in 2020.

 

Axis Bluechip Fund Growth

Axis Bluechip Fund growth has a 5-star rating from Crisil. The fund has a solid track record and has generated returns of close to 19.74 per cent annualized returns in the last three years. The returns every year over the last 5 years average 11.22 per cent. The fund has solid holdings including in HDFC Bank, Reliance Industries, Kotak Mahindra Bank, Axis Bank and ICICI Bank.

The strong portfolio gives the visibility of the fund further improving the returns in 2020, which makes this one of the top picks from the equity mutual funds space. Those who are looking at a long-term perspective, this could be a good bet.

Canara Robeco Bluechip Equity Fund - Regular Plan – Growth

This is another fund that has a 5-star rating from Crisil. The fund has its holdings highly geared towards the financial space. Among its top holdings include names like HDFC Bank, ICICI Bank, HDFC, Infosys and Reliance Industries.

The three year annualized return from the funds has been 16.26 per cent, which is excellent and almost double of bank interest rates. Canara Robeco Bluechip Fund has excellent holdings, which suggest that it can continue to deliver superior returns over the long term. A time frame of 5 to 10 years may help investors generate good returns.

BNP Paribas Large Cap Fund Growth

BNP Paribas Large Cap Fund growth too has been accorded a top 5-star rating by Crisil. The past record of the fund has been very good with annualized returns of 14.91 per cent over a three year period.

The fund currently has a net asset value of Rs 97.37 and one can invest in this equity mutual fund through the Systematic Investment Route (SIP as well). The fund has holdings in HDFC Bank, ICICI Bank, HDFC Investment through the SIP route has also generated good returns. Remember, that equity mutual funds also are subjected to tax, so one needs to plan accordingly for the same.

DSP Midcap Fund - Growth

DSP Midcap Fund is for those looking to invest in midcap stocks. We wish to inform readers that all the above three funds are large-cap funds, where the returns are less volatile as compared to midcap funds. So, if you are ready to embrace volatility go for midcap funds.

DSP Midcap Fund has generated returns of 11.56 per cent over the last 5 years, while the three year returns are 10.71 per cent, which is not bad at all. As the markets continue to trend higher, we might see DSP Midcap Fund performing well.

DSP Midcap Fund has a 4-star rating from Crisil.

Tata Midcap Growth Fund

Like DSP Midcap Fund this is another one that tends to invest in midcaps. The Fund has generated annualized returns of 10.76 per cent over the last three years. The 5-year returns are slightly lower at 9.61 per cent.

One can also invest through SIPs in the Tata Midcap Growth fund. A small sum of Rs 500 can be invested in the fund through this mechanism. Systematic Investment plans are ideal for small investors in midcap to hedge against risk and volatility.

JM MultiCap Fund Growth

This fund has been accorded a 5-star rating from Crisil. JM MultiCap Fund Growth, tends to invest its money in multicap funds, which is a mix of large cap stocks, midcap stocks and small cap stocks. However, the portfolio of the fund is more skewed towards largecap. The 1-year annualized returns from the fund is 16.71 per cent, which is not bad at all.

The fund portfolio comprises stocks like HDFC Bank, Bajaj Finance, Asian Paints, L&T etc. This equity fund is also a good bet for investors in 2020.

Kotak Standard Multicap Fund - Growth

This fund also has a 4-star rating from Crisil and invests money in largecap stocks, midcap stocks and smallcap stocks.

The 5-year anualized returns from the fund has been around the 11.61 per cent mark, which is pretty good. The 3-year returns have been even better at above 14 per cent.

Investors with a long-term objective might consider this fund. The current NAV is Rs 37.06 at which levels you could invest in. The fund has holding in the stocks of ICICI Bank, Reliance Industries, HDFC Bank and Axis Bank.

UTI Equity Fund Growth

Like most of its peers, UTI Equity Fund too has done well over the last many years. The fund has generated a return of 13.89 per cent over the last three years, which is pretty decent. UTI Equity Fund Growth has got a 4-star rating from Crisil. Among its holding include names like Bajaj Finance, HDFC Bank, HDFC and Kotak Mahindra Bank.

SBI Magnum MultiCap Fund - Growth

This fund has a 4-star rating from Crisil. The SBI Magnum MultiCap has generated a return of 12.18 per cent in the last three years, which is not bad at all. The current net asset value of the fund is Rs 50,76. Investors can invest in the SBI Magnum MultiCap Fund through the SIP route as well. Being a multicap fund, it invests across the large cap, small cap and midcap space.

SBI Magnum MultiCap Fund is a good equity mutual fund that investors could consider for 2020, because of its returns of the past. It's also important to remember that mutual fund investments are risky and hence do not put all eggs in one basket and always diversify.