The equity market has been facing a tough time for the last few months. NAV of the majority of the equity mutual funds has also been dropped. However, for the potential investors, it is an opportunity to increase the profits as more units can be purchased at a cheaper price in the current market conditions. Following funds are the top recommended mutual funds for long term investment in 2019 which are likely to gain the most according to the current market conditions.
Mirae Asset Emerging Bluechip Fund
It is a top performing large and mid-cap scheme which has been chosen by a large number of investors due to consistent performance and remarkable returns. The long term returns of this scheme are highest in the category and are much above the benchmark. The allocation in the large and mid-cap stocks are generally kept equal. It is a high-risk fund and can be chosen for long term capital gains by aggressive investors. The units must be accumulated for more than 5 years for better returns.
ICICI Prudential Bluechip Fund
This is the optimum large-cap fund for suitable investors. The fund seeks for the stocks with bluechip quality from the top 100 stocks of the stock market. The fund has maintained a lower risk in the portfolio and delivered significant returns. It ranks among the best in the category for a long time and has high AUM. This scheme is most likely to gain from the upcoming trends in the market and can be chosen by investors who seek long term capital gains. Ideal tenure to invest in ICICI Prudential Bluechip is 3-5 years however longer tenure can deliver better returns.
Motilal Oswal MultiCap 35 Fund
This scheme has been included in the list of top recommended schemes for 2019 because of the active management strategy. The fund manager allocates the funds in the most beneficial instrument regularly. It has been a late entrant in the multi-cap category but has maintained an annualised return of 20% (as of 2nd March 2019) since inception in 2014. It can be chosen for long term gains by the investors who can take high risk.
HDFC Small Cap Fund
It is one of the most aggressive schemes in the Indian mutual fund industry. HDFC Small Cap Fund uses equity instruments of emerging companies which have a wider margin of growth. 2019 can a beneficial year for the small caps but the investment must be done for more than 7 years for a beneficial output. It possesses a very high risk and must not be chosen by conservative investors. In long term, this fund can provide highest returns to the disciplined investors.
L&T Midcap Fund
This fund has generated the highest returns in the mid-cap mutual fund category for long term investment. Due to superior management strategy of Mr Saumendra Nath Lahiri, the fund has some of the best stocks of the mid-cap category in the portfolio. Small cap and large cap stocks have 10% allocation each and the rest is invested in mid caps to garner higher returns. The fund possesses high risk and must be chosen for more than 5 years for beneficial output.
The above-mentioned schemes have been chosen after a comprehensive analysis of various parameters. All the listed schemes can gain significant returns in the upcoming market conditions of 2019. The selection of scheme must be done according to the suitability of the investor keeping the risk factor and investment objective in line with that of the mutual fund.
The article mentions and describes the top recommended mutual funds for 2019 for long term wealth creation and capital appreciation.