There are hundreds of good mutual funds out there, but it is always difficult to select a few to invest in. One of our readers, Rajni from Hyderabad, had enquired about the high-return mutual funds in which I am currently invested for the year 2024. While there is no harm in checking the mutual funds in which I am invested, one should always invest based on one’s financial goals, risk tolerance and investment horizon. In this article, 7 High-yield Mutual Funds for 2024 Where I’m investing.
What are High Return Mutual Funds?
For the purposes of this article, we will exclude sector/thematic mutual funds and focus only on equity funds.
Risk in investment can be categorised as low risk, medium risk or high risk. For example, investment in stocks is high risk but also offers high returns. On the other hand, fixed deposits in banks can be categorised as low risk but offer low returns. So, if you want to get high returns, you need to take risks. Platforms like Value Research Online can help you to: High-return, low-risk investment trustsHowever, in reality, these funds also carry high risk.
There are various categories of mutual funds, among which mid-cap funds, small-cap funds, global funds, sectoral and thematic funds generate high returns. The returns of these funds are subject to high fluctuations and hence, they also entail high risks.
I personally (along with my spouse) invest mainly in high yielding mutual funds which fall under the Mid Cap, Small Cap and International Mutual Funds categories. I will talk about thematic/sectoral funds in a separate article.
The 7 High-Return Mutual Funds I’m Investing in for 2024
Below is a list of high-yielding mutual funds that I invest in. It includes 3 mid-cap funds, 3 small-cap funds and 1 global fund.
#1 – Quantitative Midcap Fund
#2 – Motilal Oswal Midcap Fund
#3 – HDFC Mid Cap Op Fund
#4 – Kotak Small Cap Fund
#5 – Quantitative Small Cap Fund
#6 – Nippon India Small Cap Fund
#7 – Motilal Oswal Nasdaq 100 Fund
7 High Yield Mutual Funds for 2024 – Lump Sum Return
| Investment Trust Scheme | 3 years | 5 years | 10 years |
|---|---|---|---|
| Quantitative Midcap Fund | 36.1% | 37.2% | 22.0% |
| Motilal Oswal Midcap Fund | 37.8% | 29.4% | 22.8% |
| HDFC Midcap Op Fund | 30.0% | 26.8% | 21.3% |
| Kotak Small Cap Fund | 24.9% | 30.1% | 22.6% |
| Quantitative Small Cap Fund | 36.1% | 42.9% | 21.8% |
| Nippon India Small Cap Fund | 35.0% | 33.2% | 26.5% |
| Motilal Oswal Nasdaq 100 Fund | 15.6% | 24.2% | N/A |
7 High Return Mutual Funds for 2024 – SIP Returns
| Investment Trust Scheme | 3 years | 5 years | 10 years |
|---|---|---|---|
| Quantitative Midcap Fund | 43.6% | 43.3% | 26.9% |
| Motilal Oswal Midcap Fund | 39.2% | 37.0% | 23.3% |
| HDFC Midcap Op Fund | 35.9% | 34.0% | 22.3% |
| Kotak Small Cap Fund | 26.7% | 33.3% | 23.3% |
| Quantitative Small Cap Fund | 42.5% | 50.9% | 28.8% |
| Nippon India Small Cap Fund | 38.8% | 41.0% | 27.2% |
| Motilal Oswal Nasdaq 100 Fund | 22.7% | 21.7% | N/A |
Frequently asked questions about high-yield mutual funds
#1 – Which mutual funds have generated the highest returns over the past 10 years?
Nippon India Small Cap Fund belongs to this category which has generated high returns over the last decade. It has generated annualized returns of 26.5% and an investment of Rs 1 lakh grew to Rs 1.05 lakh during this period. 5 mutual funds with 10-year returns between 920% and 1,250% Too much.
#2 – Which mutual fund will give you the highest return over a one-year period?
Below are the top 10 equity funds that have generated high returns in the past one year: These funds have generated returns ranging from 75% to 100% in the past one year.
- Motilal Oswal S&P BSE Enhanced Value Index Fund – 100%
- UTI Nifty 500 Value 50 Index Fund – 98%
- Quantitative Value Fund – 84%
- Quantitative Midcap Fund – 82%
- Edelweiss Nifty Midcap 150 Momentum 50 Index Fund – 78%
- Tata Nifty Midcap 150 Momentum 50 Index Fund – 77.8%
- ITI Mid Cap Fund – 76.2%
- JM Mid Cap Fund – 75.2%
- Bandhan Small Cap Fund – 74.9%
- ICICI Prudential Bharat22 FOF – 74.2%
#3 – Who can replicate my portfolio?
Investing in mutual funds should be done based on your financial goals, risk tolerance and investment horizon. I am willing to take the risk and wait for 8-10 years and use these funds for long term goals beyond 10 years. If you fall in this category then you can invest in such funds.
#4 – Is this the only mutual fund that is giving high returns?
No. There are hundreds. Best mutual funds for the next decadeOnce you find a high-yield fund that fits your criteria, you can invest in it.
#5 – How can you maximize your returns from such high-risk, high-return funds?
As the stock market has been volatile over the past three years and is currently at an all-time high, I have personally adopted the following strategy.
- Continue your SIP for one monthst Week of the month
- Invest your money in liquid funds and do STP into these mutual funds through Systematic Transfer Plan (STP) for the next 6-9 months.
#6 – Why did I choose only these 7 funds?
There are hundreds of top performing mutual funds. For example: 20 Mutual Fund Schemes that generated positive returns every year for the last 10 yearsAlthough my motto is to generate high returns, I periodically review and eliminate underperforming funds. These funds have evolved over time. If you think there are better funds in such high risk/high return categories, please invest in them.
#7 – How do I filter the top 10 high return mutual funds in India?
As I always say, the first step in filtering mutual funds should be based on your financial goals, risk tolerance and investment time horizon. The second step is to see how well mutual funds have performed in different market cycles. The third step (optional) is to filter further based on expert recommendations.
#8 – Which are the low risk high return mutual funds in India?
Tough, right? But ValueResearchOnline provides specific risk and return categories that you can filter by as a first step. Below are six high-return, low-risk funds from Value Research:
- HDFC Retirement Savings Fund Share Plan
- ICICI Prudential Blue Chip Fund
- ICICI Prudential Retirement Fund – Pure Equity Plan
- JM Flexi Cap Fund
- Motilal Oswal Midcap Fund
- SBI Contrafund
#9 – Which SIP gives the highest returns?
You never know which SIP will give you the best returns. The best performing fund today may turn out to be the worst performing fund next year. The following funds have generated the highest SIP returns over the last 10 years.
- Quantitative Small Cap Fund – SIP Return 28.8%
- Quantitative ELSS Tax Saver Fund – SIP Return 27.8%
- Nippon India Small Cap Fund – SIP Return 27.1%
- Quantitative Midcap Fund – SIP Return 26.9%
- Quantitative FlexiCap Fund – SIP Return 25.9%
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
