Best Mutual Funds For 2020 India | Best Mutual Funds For Sip 2020 | Best SIP Plan 2020 in India | Best Large Cap and Small Cap Mutual Funds to Invest in 2020

Best mutual funds for 2020 India, Today we are going to talk about which to choose if I want to choose mutual funds in 2020. So I have made a list of some related funds for you in each category that you should choose which funds and where to invest in which funds. To analyze this, I analyzed the rolling returns of the funds.

Best Mutual Funds For 2020 India - https://www.yahoofinancebuddy.com/

What is rolling returns?

Analyzing rolling returns i.e. funds from 2010 to 2020 and understanding that if you give 5 years time in any fund or hold for 5 years in 10 years period then how likely will I be to get my returns. The same is called rolling returns.

Rolling Returns tells you the consistency of funds. It is important to know in any of the funds that there is a possibility of getting returns and you can only know this by rolling returns.

Along with it, there are other important things which are very important for any investor to know before taking any funds. Some of which are:

How are that fund's historical returns
How is the portfolio allocation of funds
Who is the manager of that fund
How is the past history of the fund
How much is his average return

What is the turnover ratio of the fund, which we also called the Churning Ratio (how many times the fund is grazing in its portfolio), based on all these things, we should take any Mutual Funds.

In Large-Cap Funds category

In today's Coronavirus era, if anyone asks me for suggestions where or in which category of funds, I should say -

Large caps are those companies
Whose balance sheet is strong
They have a good market share
Monopoly runs in their market

Because if we talk about the last 1 year, it is trading from its moving average or from its trend line price or their price to earnings ratio or their book value which is a very good valuation.

So that's why if I want to invest today, then large-cap will be a great option which I will choose and that is what I will do to you.

The top 100 companies in the large-cap category generally have a large-cap of 80% of their money.

All 100 companies have a cold strong balance and have goodwill in the market. And any value investor will always want it whenever a situation similar to the corona period comes when any good company is trading at less than its valuation, then it can buy it.

Do not choose directly yourself, but you can consult a good fund manager before buying them.

If you want to suggest to me what are the funds that should be invested on, then they can be-

Axis Bluechip Fund

UTI Nifty Index Fund

Axis Bluechip Fund -

This is because if I ever invest in it and give that investment at least 5 years time, then I saw that there was not a single chance to see negative returns on my investment.

The special thing is that on most occasions I had a 70-72% the chance that I would get more than 12% returns in this fund.

UTI Nifty Index Fund -

This is because index funds replicate your index, so there is no significant role of the fund manager. Just as the index will react, the company whose allocation is as much as it copies it, so the expanse of the fund is comparatively very less. If we talk about large-cap funds, this is the lowest extra expense.

You will not get the benefit of decreasing expenses but if you are compounding it in 5 years, 10 years, then you get a very good benefit in your returns.

It seems the coming time is going to be of passive funds, that is why I am suggesting this Nifty index fund.

If we talk about its intensity, it is 0.017. If you are less than 100 rupees then you are giving only 17 as fund fee to the fund manager because he is managing your fund.

That is why in the large-cap category, I will judge you both.

In The Small-Cap Category

Now let's talk about small-cap funds category,

So I would like to go with HDFC small-cap. Because

The performance of the fund has always been consistent and

The funding ratio of the fund is very low which I have always liked.

Churning Ratio - If a fund manager chooses good stocks in my portfolio, I would not like to change my portfolio repeatedly. The churning the ratio of this fund is 2% or we can also say that HDFC's turnover ratio is 2%.

And if we compare it with other small-cap funds, then DSP or Reliance, even SBI small-cap.

So their churning ratio is 100% plus ie your portfolio has been changed more than once in a year. Which I do not like and any investor should think the same.

Because if you are relying on a fund manager, then you will want to choose those stocks that he can trust for a long time.

Therefore HDFC Small Cap seems to be a long term bet and hence it is low volatile as well as the best in the small-cap category and lowest in volatility is HDFC Small Cap Fund.

If we talk about the returns of this fund, then if I am giving 5 years time to this fund, between 2010 and 2020 I saw that on 40% of the occasions, negative results have been received in 5 years time. On another hand, if you talk about the funds of the second small-cap category, then this range was 2%, which is much more.

Which I do not recommend?

Yes, if you have 7 years, then HDFC is not the best of small cap fund.

Now let's talk about ELSS funds

ELSS funds

ELSS funds ie if you have to save tax and tax saving is your objective and you have to create wealth along with tax savings, then for this I will suggest only two funds for 2020.

Axis Long Term Equity Fund

Aditya Birla Sunlife Tax Relief 96

This is because both of them have a different allocation to their portfolios.

If I want to invest in stable companies. If my investment is not volatile on my returns, I would like to go with the Axis Long Term Equity Fund.

And if I have the ability to take the risk, I can hold it for the next 7 years from today, then I would like to go with Aditya Birla Sunlife Tax Relief 96.

Because the Axis Long Term Equity Fund has always been large cap centric ie the maximum allocation of the fund has always been invested in large-cap companies since the beginning.

And if we talk about Aditya Birla, then it has always had more exposure in small-cap and mid-cap.

Now let us talk about the data if I had given only 5 years in 10 years, none of these has received negative returns in any of these times. In every market cycle of the Axis Long Term, the probability that he will get 12% more returns is more than 92%. If you have supported 5 years with this fund

And if we talk about Aditya Birla, then the probability of 98% here would have been more than 8% if you had given 5 years time with this fund.

(Note: Aditya Birla Sun Life Tax Relief 96 started in the year 1996. If you had invested one lakh rupees in this fund, then in March 2014, the value of that 1 lakh would have been 100 times. That is, 1 crore rupees.)

That is why if you can invest in the long term for 15 years or 20 years then there is no better option than Aditya Birla and if you want less time for 5 years or 7 years then you can go with Axis Long Term.