Top Mutual Funds to Invest in December 2018

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We are entering the last month of 2018, and with this, we are also coming to the end of an year full of market volatility. From the start of the year, a series of events had taken place time to time, taking the returns of equity mutual fund schemes on a roller coaster ride. The top reasons responsible for this were reintroduction of LTCG, NPA crisis, IL&FS payment default, the surge in crude oil prices, and the continuous rise of Dollar-INR valuation.

Now, this, on one hand, created a panic among investors who were struck by the returns continuously going negative, on the other, it has opened a lot of opportunity for investors as now, the top schemes are available for investment at discounted prices. Today, we will discuss 5 mutual fund schemes handpicked from banking, midcap, and multi cap category that you can invest in December 2018 for optimal growth in the future.

Best Mutual Funds to Invest

Reliance Banking Fund (G)

Now, in the past one-year, banking and finance sector is the one that was hit by a large number of bad news. The condition was so bad that top PSU banks and finance companies faced a drop in prices of as high as 50%. This drop generated the best opportunity to invest in Reliance Banking Fund, as this sector is showing huge possibilities for growth in the future. Have a look at its basic details which will help you in kick-starting your investment journey.

From the above table, it can be seen that in the past 1 month, this scheme has provided a return of 9.75%, which shows that it has entered the recovery phase. Also, in the long-term too, even after being a sector scheme, Reliance Banking Fund has provided decent returns, beating benchmark as well as the category at every instance. But, before investing, remember that as it is a sector-oriented scheme, the risk associated is very high, and in the future too, such volatility can be seen. So, plan your investments accordingly.

Invesco India Mid Cap Fund (G)

Invesco Mutual Fund over the years have been gaining a steady popularity among investors, and one of the main reasons behind that is Invesco India Midcap Fund. Before we discuss this scheme further, have a look at its basic details.

Invesco India midcap fund over the years has been showing a great performance, and not only in the market upside but the market downside as well. It invests in a focused manner and as of now has an investment in 40 stocks picked from 13 sectors. The major allocation is in finance, healthcare, energy, engineering, and services sector, all of which are expected to give a good rally in the coming years.

L&T Midcap Fund (G)

L&T Midcap Fund is a scheme which does not need any introduction. Over the course of years, it has maintained the 1st ranking in the mid cap category and all the credit for that goes to its exceptional management. Have a look at its basic details.

With the help of the above table, the difference in the returns of the benchmark, category, and scheme can be easily seen. Now, what makes it different from the above mid-cap scheme is its diversified style of investing, using which it has managed to provide an annual average return of more than 19% since its inception. As of now, L&T Midcap Fund has an investment in 78 stocks, majorly picked from finance, construction, engineering, healthcare, and chemicals sector.

SBI Magnum Multicap Fund (G)

SBI Magnum Multicap Fund is for investors who don’t want to take high risk with their investments. It invests across the market capitalization which provides it with an extra level of security as even if stocks from one market cap don’t perform, others can compensate for it. Have a look at its basic details.

Now, as you can see that in the past, this scheme has shown a moderate performance by giving an average annualized return of around 12%. But, as of now, SBI Magnum Multicap Fund has increased the allocation in the finance sector to 31.17%, so a high growth can be expected in the coming years, making it a perfect time to start your investments in this scheme.

Motilal Oswal Multicap 35 Fund (G)

Motilal Oswal Multicap 35 Fund has just completed a course of 4.5 years recently and in this short time, it has managed to gain quite a popularity and the AUM of more than Rs 12,000 crores is proof of that. Have a look at its basic details before we discuss this gem further.

If you look at the above return table, the past 1 year and 3-year returns may not look that attractive. But, don't get confused with that as in just 1 month, Motilal Oswal Multicap 35 Scheme has shown a great recovery, providing a return of more than 8%. This shows how much potential this scheme holds for growth. Now, as it is following a focused style of investing (investment in a max of 29 stocks), the effect of volatility was a bit higher and also, this was the first time it was facing such a bad market cycle. But, from here on, a much better growth is expected.

The Final Take

So, from the above list, you can choose a mutual fund scheme that best suits you. Although if you are a new investor, then it is advised that before making the final decision, consult your financial advisor to know that if the above schemes suit your risk profile. And, to get the best benefit from the above schemes, it is advised that you stay invested for at least 5-7 years.

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