Nowadays mutual funds have become one of the preferable investment options among Indian in- vestors, especially among the youth. It is mainly because of several benefits such as convenience and affordability, professional management, port- folio diversification, liquidity, and tax benefits. However, identifying good mutual funds to invest in can often pose a considerable challenge for even experienced investors.

Here in this blog, we have discussed some of the best mutual funds to invest in 2024, factors to consider before investing and much more.

Mutual Funds In 2024

As said before, mutual funds are emerging as one of the most sought-after investment avenues in India. Investors are increasingly drawn to mutual funds in today’s financial landscape primarily because it gives them a variety of choices across different asset classes to invest in.

Moreover, this investment option comes with a minimum entry amount starting from as low as Rs.500. Mutual funds are also highly liquid and can be withdrawn at any point in time except ELSS, which is not the case with many other investments. Whether you are new to investing or have been doing it for a while, there are some mutual funds worth checking out.

For example, Groww Mutual Fund, formerly known as Indiabulls Mutual Fund, is gearing up to introduce a sectoral fund named Groww Banking & Financial Services Fund. This open-ended equity scheme potentially could turn out as one of the best equity mutual funds of 2024. Dedicated to investing in sectors associated with banking and financial services, the scheme and its New Fund Offer (NFO) will be live from January 17 to January 31, 2024.

Best Mutual Funds to Invest In 2024

Here is an overview of some of the best mutual funds in India as of today.

• Canara Robeco Blue-chip Equity Fund

Canara Robeco Bluechip Equity Fund is one of the top picks for the best mutual fund schemes in 2024. It primarily invests in large-cap companies and has delivered stable returns over time providing inflation-beating growth over a longer investment horizon.

• HDFC Large and Mid-Cap Fund

For 2024, this fund is recommended for the large and mid-cap category. It has delivered a 5-year return of 20.6% and a 10-year return of 15%. It operates intending to generate capital appreciation over a longer investment horizon.

• Parag Parikh Flexi Cap Fund

It is considered one of the best mutual fund schemes in the flexi cap category. This fund invests in company stocks across all the sectors and has US stocks such as Microsoft Corporation, Meta Platforms Inc Class A, Alphabet Inc Class A etc. It has delivered a 5-year return of 22.8% CAGR.

• PGIM India Midcap Opportunities Fund

It is among the best mid-cap mutual funds in the market. It has its majority investments in the consumer cyclical sector, financial service, and healthcare sectors. Investors can start with a minimum SIP amount of Rs.1,000.

• ICICI Prudential US Blue-chip Equity Fund

As the name suggests, it primarily invests in US large-cap companies such as Walt Disney Company, Equifax Inc., Charles Schwab Corporation and more. However, the expense ratio of the fund is 2.02, which is slightly on the higher side.

For more information, look at the following table to find out the last 5 years' performance of the best mutual funds ranking in 2024.

Name of Funds	Fund Category	5Y Returns
Canara Robeco Blue-chip Equity Fund (Growth)	Large-cap fund	17.1%
HDFC Large and Mid-Cap Fund (Growth)	Large and Mid-cap fund	20.8%
Parag Parikh Flexi Cap fund (Growth)	Flexi cap fund	22.8%
PGIM India Midcap Opportunities Fund (Growth)	Mid-cap fund	25.1%
DSP ELSS Tax Saver Fund (Growth)	Tax saving fund	19.6%
Mirae Asset ELSS Tax Saver Fund (Growth)	Tax saving fund	19.4%
ICICI Prudential Liquid Fund (Growth)	Liquid fund	5.2%
HDFC Gold Fund (Growth)	Gold	12.8%
Kotak Gold Fund (Growth)	Gold	12.9%
Franklin India Feeder Franklin U S Opportunities Fund (Growth)	US Equity	15.8%
ICICI Prudential US Bluechip Equity Fund (Growth)	US Equity	17.4%
Kotak NASDAQ 100 Fund of Fund (Growth)	US Equity	NA

Factors to Consider Before Investing in Mutual Funds

Here are some of the factors to consider while investing in mutual funds with good returns:

• Financial Objectives

The first and foremost thing that one should figure out before making any mutual fund investment is their financial objective for the short term and long term. It will help you to determine which type of fund will meet your goals, that is whether you need equity, a debt-oriented scheme or a hybrid one.

• Investment Tenure

Once you have figured out the investment objectives, now it will be a bit easier to figure out the investment horizon, that is for how long you are willing to keep the funds invested.

• Risk Tolerance

The next point to keep in mind is your risk appetite. Risk tolerance varies among different investors. Some may have a high-risk appetite, while others may be more risk-averse or possess a moderate tolerance for risk. Hence, identify your risk tolerance before going for a mutual fund investment.

• Fund Performance

It is also important to consider the performance of the fund over different time horizons such as since inception, 1-year return, 3-year return or 5-year return. For your best interest, you must make sure to go for a fund which has delivered consistent returns over the last 5 years.

• Expense Ratio

One must also consider checking the expense ratio of a mutual fund scheme. It is the fees levied by the AMC for managing the fund, typically it includes the fund manager's fees, marketing expenses, etc. Usually passively managed funds come with a lower expense ratio as compared to actively managed funds.

The Bottom Line

Hopefully, by now you will be able to choose the best mutual funds to invest in 2024. Investing in mutual funds has proven to be a profitable choice for Indian investors over the past few years. It provides a straightforward and cost-effective means to diversify your portfolio, enabling capital appreciation while maintaining manageable risk levels. However, consider checking the above-discussed aspect before selecting a mutual fund scheme for a secured investment.