10 Best-Performing Mutual Funds to Invest in 2022

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Introduction

To accelerate your wealth creation journey, you must move beyond conservative options (FDs and gold) to more robust investment vehicles such as equity mutual funds. Mutual funds help investors achieve the golden rule of investment: not having all the eggs in one basket!

For instance, buying a share in a mutual fund means investing in a variety of assets and securities, such as gold, debt, and equities. This spreads your risk and brings you closer to your financial objective. Are you looking forward to investing in the best mutual funds? We have listed the top-performing mutual funds for you to make an informed investment decision.

How to Determine the Best Mutual Fund to Invest in 2022

Mutual funds can be divided into many categories, such as equity mutual funds, debt mutual funds, and hybrid funds, depending on their underlying assets, such as equities, debt, or gold. Depending on your investment goals, ability to take risk, and time duration to invest, you can pick the right mutual fund for yourself. Also, as an investor, you would want to vet the fund’s performance-based parameters such as expense ratio (the per-unit cost for running and managing the mutual fund), past performance, assets under management (the total market value of the investments that someone or something manages for investors) and the fund manager’s experience.

Say, for instance, you want to invest in a mutual fund today, to reap enough funds to fund your child’s university education abroad after 15 years. For such a long-term investment objective, equity mutual funds can be the best option. Moreover, you might have more than one investment objective. Say, for instance, you want to buy a car within five years. In such a case, investing in a less volatile fund, such as a debt mutual fund, would be more sensible to meet the short-term nature of this objective.

As an investor, you have to decide which type of equity mutual fund you will want to invest in, such as small-cap equity mutual funds (funds that invest in stocks of smaller companies) or large-cap (funds that invest in stocks of bigger companies) equity mutual funds.

Top 10 Best Mutual Funds

Let’s find out which are India’s top 10 best mutual funds to invest in 2022:

S.no	Name of Mutual Funds	One-year return	Three-year return	Five-year return	Minimum Investment
01	Axis Bluechip Fund	-8.790%	11.600%	12.250%	Rs. 1000
02	Mirae Asset Large Cap Fund	-3.64%	52.31%	71.03%	Rs. 5000
03	UTI Flexi Cap Fund	-14.83%	18.95%	13.39%	Rs. 5000
04	Quant Mutual Fund	7.686%	35.924%	22.979%	Rs. 5000
05	Tata Small-Cap Fund	-2.01%	31.15%	13.08%	Rs. 5000
06	Canara Robeco Small-Cap Fund	-4.152%	17.358%	14.674%	Rs. 5000
07	Nippon India Multi-Cap Fund	10.72%	20.74%	13.57%	Rs. 100
08	Parag Parikh Flexi Cap Fund	-5.05%	24.08%	17.66%	Rs. 1000
09	Kotak Emerging Equity Fund	5.01%	25.52%	14.33%	Rs. 5000
10	SBI Small-Cap Fund	10.97%	29.78%	17.22%	Rs. 5000

1. Axis Bluechip Fund

Axis Mutual Fund is among the top ten asset management firms in India. It was founded in 2009 as a joint venture by Schroder Singapore Holdings Private Limited and Axis Bank—one of India’s leading private sector lenders. The Axis Bluechip Capital Direct Plan is an Axis Mutual Fund Large-Cap fund programme. This fund has been functional for nine years. It has assets under administration of Rs. 35,822 crores as of 30/09/2022.

2. Mirae Asset Large Cap Fund

This extensive cap programme has been in process for 9 years. It was founded on January 1, 2013. It has assets under administration of Rs. 32,981 crores as of 30/09/2022.

3. UTI Flexi Cap Fund

In January 2003, the UTI Mutual Fund was launched as a SEBI-registered mutual fund firm. The UTI Flexi Cap Plan is a class of UTI Mutual Fund plans. This programme has been in process for 9 years. As of September 30, 2022, its value is Rs. 25,787 crores. The expense ratio of the fund is 0.93%. It is greater than the expense ratio of the majority of multi-cap funds.

4. Quant Mutual Fund

A pioneering mutual fund and among India’s oldest, Quant Mutual Fund was founded in 1996. This fund protects its investors’ interests through the flexible and active money control process. Quant mutual funds offer a greater rate of return stability with an excellent ability to limit damages in a decreasing market stage. As of May 31, 22, Quant Mutual Fund owned 0.24% of the firm’s overall Assets Under Management. The expense ratio of the fund is 0.62%.

5. Tata Small-Cap Fund

The Tata Small-Cap Fund is a Tata Mutual Fund Small-Cap unit trust plan. It was founded on October 19, 2018. Tata Small-Cap Fund has Rs. 2,571 crores as of 30/09/2022. Its expense ratio is 0.3%. It is lower than most of the small-cap funds. The programme is an open-ended investment option.

6. Canara Robeco Small-Cap Fund

Canara Robeco Mutual Fund is the country’s second-oldest mutual investment firm. The firm was founded on January 25, 2019. It is a medium-sized fund, with Rs. 3,767 crores in assets under administration as of 30/09/2022. The fund’s expense ratio is 0.39%.

7. Nippon India Small-Cap Fund

Nippon Mutual Fund founded the Nippon India Growth Fund on June 30, 1995. The primary purpose of this fund is to generate long-term capital growth. It is by mainly investing in equity and related instruments of small-cap firms. This fund has outperformed its peers in its type. Nippon India Fund’s growth has assets of Rs 22.158 crores as of 30/09/2022. The fund’s expense ratio is 0.87%.

8. Parag Parikh Flexi Cap Fund

PPFAS Mutual Fund is a notable asset control firm in India. It was founded in 2011. The Parag Parikh Flexi cap program has been running for nine years since its start on May 13, 2013. It has assets under administration of Rs. 26,033 crores as of 30/09/2022. The fund’s expense ratio is 0.78%. It is the same for most of the multi-cap funds.

9. Kotak Emerging Equity Fund

Kotak Emerging Equity Fund is a Kotak Mahindra Mutual Fund Mid Cap product. This program has been in process for 9 years. It was founded on January 1, 2013. It has assets under administration of Rs. 21,996 crores as of 30/09/2022. The fund’s expense ratio is 0.48%. It is lower than most other mid-cap funds.

10. SBI Small-Cap Fund

SBI Mutual Fund was created as a trust on June 29, 1987. SBI Small-Cap Fund is an SBI Mutual Fund Small Cap fund plan. It has Rs. 14,494 crores in assets under administration as of 30/09/2022. The fund’s expense ratio is 0.71%. It is comparable to most other similar small-cap funds.

Key Takeaway

Since the risk-return profiles of different funds vary, you should select a fund according to your risk-taking ability and investment timeframe. Choose a mutual fund by finding a middle ground between risk tolerance and the fund’s hazard. If you are ready to take on a high level of risk but have a time horizon of fewer than three years, you should not invest fully in equity funds. You can consider trading in a combination of equities and debt funds. Hence, you must invest in the best mutual fund based on its past and current performance for your excellent investment journey.

Frequently Asked Questions

Q1. What are some ways to select a mutual fund?

These are the ways to select a mutual fund:

Choose a fund in which the investor can invest money legally and in a balanced manner
Examine the portfolio’s quality to ensure high-quality assets and appropriate cash
Consider the past returns of that fund

Q2. What are the points to keep in mind while choosing a mutual fund?

Keep these points in mind while choosing a mutual fund:

Low Expense Ratio
Periodic review of funds
The portfolio should have low-churn
Consistency in the style of investing

Frequently Asked Questions

Q1. What are some ways to select a mutual fund?

These are the ways to select a mutual fund:

Choose a fund in which the investor can invest money legally and in a balanced manner
Examine the portfolio’s quality to ensure high-quality assets and appropriate cash
Consider the past returns of that fund