Best mutual funds to invest in 2024: Top-performing large, multi-cap, ELSS funds in last 5 years. Check here

Select mutual funds based on long-term performance, benchmark comparisons, fund house philosophies, risk management, fund manager experience, expense ratio, and fund size to make informed investment decisions in volatile markets.

Abeer Ray
First Published23 May 2024
Comparing returns can be one way to decide your next mutual fund investment.
Comparing returns can be one way to decide your next mutual fund investment.

Selecting mutual funds for long-term investments in turbulent market conditions requires careful evaluation of the fund's overall strategy and historical performance. Here are some things to think about:

Evaluating long-term performance

Do not be fixated on a fund’s past year returns. Evaluate the fund’s long-term performance. Look at the fund's performance over a longer period, ideally 5-10 years, to see how it has fared under various market situations. Next, compare fund’s returns to benchmark returns: Examine how the fund's returns compare to a relevant benchmark index (such as the Nifty 50 for large-cap funds). Consistently surpassing the benchmark is a good sign.

Also Read: Top Mutual Funds: These are the best small-cap MFs to invest in 2024. Do you own any?

Check for investment strategy

Are you conversant with the investment philosophies of the fund house? Recognize the development and value-adding approach and guiding principles of fund management. Verify that they align with your investing goals and risk tolerance. Analyse the risk control, select funds that have an effective risk management system to lower downside risk. Verifying the fund manager's experience is essential. Verify the experience and performance history of the fund manager. It is best to have a seasoned manager who has experience navigating market cycles.

Also Read: Mutual Funds: 5 best focused funds managed to beat the benchmark index in the past 5 years

There are other aspects to take into account in addition to the previously mentioned ones. Take the fund's expense ratio, for instance. Reduced spending ratios show that a larger portion of your funds are allocated to investment gains. The size of the fund is another crucial factor. Smaller funds may have more room for growth even though larger funds can provide stability.

When returns matter!

Selecting the next fund to add to your investment portfolio can be done in part by comparing fund returns across multiple financial websites. Using a range of criteria, such as returns, to evaluate mutual funds can assist you in making an informed choice.

Also Read: Mutual funds: 5 money market schemes delivered over 7.5% return to investors in the past one year

Here is the list of top-performing large cap, multi cap and ELSS funds: 

Name of the mutual fund

Type of fund

5-year returns (in %)

Nippon India Large Cap Fund

Large-cap fund

94.01

ICICI Prudential Bluechip Fund

Large-cap fund

81.39

JM Large Cap Fund

Large-cap fund

80.78

Quant Active Fund

Multi-cap fund

141.24

Nippon India Multicap Fund

Multi-cap fund

128.22

Mahindra Manulife Multi Cap Fund

Multi-cap fund

113.68

Bank of India ELSS Tax Saver

ELSS fund

116.05

SBI Long Term Equity Fund

ELSS fund

115.88

Sundaram Long Term Tax Advantage Fund

ELSS fund

113.96

Source: AMFI (As on May 22, 2024)

Mutual fund schemes need to be assessed with a fair and impartial methodology that considers both qualitative and quantitative factors. Long-term success in quantitative analysis requires delving into qualitative issues, even though historical performance makes an attractive starting point.

Also Read: Magic of compounding: Investing 1 lakh in this mutual fund at launch would have grown to 30 lakh now

Investors must be aware that past performance does not guarantee future outcomes. However, you can increase your chances of choosing a mutual fund plan that performs well over time, particularly in volatile markets, by considering both long-term results and the fund's investing strategy. 

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HomeMutual FundsBest mutual funds to invest in 2024: Top-performing large, multi-cap, ELSS funds in last 5 years. Check here

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