You must already aware of what are mutual funds? Mutual Funds forms an investment part of our investment portfolio. Not only they have a higher rate of return but they also help you in saving taxes. This is right, if you invest in the certain type of mutual funds then you can also save taxes. So just like many others, you must also be buying the mutual funds to save taxes under 401 k Section. In such a case, it doesn’t make sense to buy the mutual funds just to save taxes. You must buy the best mutual funds to get you the best return.
To help you with this, we started looking at the mutual funds so as to come up with the best mutual funds available in India. While compiling the list for you, we didn’t just look for the performance but we also looked for the fund managers, overall rating and many other such factors.
As per the analysis, we noticed that most of the top performing funds belong to the three largest fund houses in America. These fund houses include American Funds, Vanguard and Fidelity. Some of these funds are also actively managed funds which offer better risk mitigation for you.
If you haven’t invested in mutual funds yet and if you are planning to buy mutual funds now or if you plan to allocate more funds to the mutual funds then this article is especially for you as we have listed some of the top mutual funds available in the market.
Top 10 Best Performing Mutual Funds Investment Plan
Below is the list of top 10 Mutual Fund Investment Plans available to you.
American Funds Capital World Growth & Income Fund:
The next on our list is the American Fund Capital World Growth & Income Fund. This fund has an expense ratio of 0.77% with a 5 year return of 9.17%. The 1 year return for this fund is 8.9% which is certainly quite amazing. Also, a major allocation from the fund goes towards US and Non-US Equities. This is a really good fund from the long term perspective.
American Funds Washington Mutual Investors Fund:
If you do not wish to have a fund that invests majorly in Non-US Equities then you can also have a look at this American Fund as most of the allocation in this fund goes to US based equities. With a 5 year return of 12.77%, the fund can be an important asset in your portfolio. Not only this, the growth prospects of American Market are quite high and hence it becomes even more important for you to have this fund in your portfolio.
Vanguard Small Cap Index Fund:
Small Caps always have a high risk and they also come with high growth. If in case, you want to invest in a fund that has a lot of money allocated towards Small Caps then you can opt for this amazing fund. The expense ratio here is quite low as it stands at just 0.17% and the fund has been giving a return of over 12.9% over the period of 5 years. The three year return for this fund is even higher as it stands at 15.09%
American Funds Investment Company of America Fund:
American Funds Investment Company of America Fund is another such attractive option available to you which can promise you a good return. The 5 year return of this fund is almost 12.75% and for last year, the fund is giving a return of 15.33%. This fund also has the majority of holding US Equity market which basically increases the return of the fund.
Vanguard 500 Index Fund:
Lower Expense Ratio is always an advantage for the investors. If you wish to invest in an Index fund then you must look at Vanguard 500 Index fund as this fund comes with a low expense ratio of 0.14%. Also, the fund is performing at par with the S&P 500 index. The 3 year return had been almost 16% here and the 5 year index is close to 14.3%.
American Funds Fundamental Investors Fund:
This is another fund which is offering good returns in short term as well as long term. The 1 year return of the fund is close to 15.5% whereas the 5 year return of the fund is almost 14%. This can be an attractive option if you wish to buy a fund a term of 5 years as the returns are quite healthy.
Vanguard Total Stock Market Index Fund:
Another Stock Market Index fund available for investors is Vanguard Total Stock Market Index Fund. This fund is giving a handsome return of 15.73% in 3 years term which is almost equivalent to the stock market return on an average. The low expense ratio of 0.14% is another reason why a lot of people choose this fund.
American Funds Growth Fund of America:
This American Growth Fund is also a good investment option as it has a historic performance of 14.2% returns. In addition to this, the fund gave a return of 16.3% in the last one year. This specific fund has 12 fund managers and it is actively managed by these managers.
Fidelity 500 Index Fund:
Fidelity also is a good option for the index funds as they come with a very low expense ratio of 0.015% and the three year annual return has already crossed 16%. Apart from this, the 5 year annual return is 14.4%.
Probably the best fund available in the market is Fidelity Contrafund as it has been performing year on year. For the last one year, the fund is returning 23.49% and the three year return is as high as 17.88%. You will surely be able to get a good return with this fund from Fidelity and you must invest in this if you are looking for the best mutual fund.
These are the best mutual funds in terms of performance and rating. You can invest in these mutual funds without any second thought and you would surely be happy in long term
Disclaimer – Mutual Funds Investments are subjected to market risk and hence we do not guarantee any type of fixed return. The returns of these mutual funds are dependent on market conditions and performance.