Diwali, the festival of lights, ushers in a season of celebration, positivity, and the promise of new beginnings. In the spirit of illumination and financial well-being, there’s no better occasion than Diwali to shed light on a financial avenue that has the potential to brighten your financial future with mutual fund investments.
Mutual funds are a popular and accessible way for individuals to invest their money in a diversified portfolio of securities such as shares, bonds, etc. It involves pooling money from various investors to create a fund that is managed by professional fund managers. Mutual fund investments have the potential to make your financial journey as radiant as the Diwali celebrations. In the below article, we will delve into top mutual fund investments on the basis of 5Y-CAGR.
Top 5 Mutual Funds
| Fund Name |
AUM (in ₹Cr) |
Expense Ratio |
5Y-CAGR (%) |
3Y-CAGR (%) |
| Quant Infrastructure Fund |
980.30 |
0.77 |
28.75 |
42.15 |
| Quant Mid Cap Fund |
3,267.99 |
0.76 |
26.71 |
38.83 |
| Quant Active Fund |
6,059.61 |
0.77 |
25.05 |
32.22 |
| PGIM India Midcap Opp Fund |
9,342.34 |
0.40 |
24.57 |
29.42 |
| Motilal Oswal Midcap Fund |
6,059.92 |
0.67 |
23.90 |
36.28 |
Let us now dig deeper into each scheme separately:
- Quant Infrastructure Fund: Quant Infrastructure Fund is an open-ended equity scheme following an infrastructure theme, which was launched on September 20, 2007. The scheme’s main goal is to provide long-term growth prospects and capital appreciation by investing in a portfolio of infrastructure-focused businesses. The scheme follows Nifty Infrastructure TRI as its benchmark index.
- Quant Mid Cap Fund is an open-ended equity scheme mainly investing in mid-cap stocks. The scheme’s investment objective is to generate capital appreciation and provide long-term growth opportunities with the help of its investments in a portfolio of mid-cap companies. The scheme follows the Nifty Mid Cap 150 TRI as its benchmark index.
- Quant Active Fund: Quant Active Fund is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks. The scheme was launched on April 17, 2001. The scheme’s investment objective is to derive growth in capital and provide long-term growth opportunities by investing in a portfolio of large-cap, mid-cap and small-cap companies.
- PGIM India Midcap Opp Fund: It is an open-ended equity scheme predominantly investing in mid-cap stocks. The scheme aims to achieve long-term capital appreciation via investing in equity and equity-related instruments of mid-cap companies.
- Motilal Oswal Midcap Fund: It is an open-ended scheme which mainly invests in mid-cap companies. The scheme’s investment objective is to generate long-term capital appreciation with the help of investments in quality mid-cap companies with long-term competitive advantages and potential for growth.
Benefits of Mutual Fund Investments
- Diversification: Mutual funds provide diversification by spreading investments across a wide range of assets. This diversification helps reduce the risk associated with investing in individual securities.
- Professional Management: Experienced fund managers make investment decisions on behalf of investors. They aim to achieve the fund’s stated investment objective, whether it’s capital appreciation, income generation, or a combination of both.
- Liquidity: Mutual fund units can typically be bought or sold on any business day, offering liquidity to investors who can easily enter or exit the fund.
- Investment Options: Mutual funds come in various categories, including equity funds (investing primarily in stocks), debt funds (investing in fixed-income securities), hybrid funds (a mix of stocks and bonds), and more. Investors can choose funds that align with their financial goals and risk tolerance.
Conclusion
Diwali, the festival of lights, brings joy and positivity and offers an opportunity to brighten your financial future through mutual fund investments. Mutual funds are like a beacon of financial well-being, guiding you towards your financial goals. You can find more information on multiple asset classes, such as stocks, ETFs and mutual funds, on the Angel One app. Open a demat account online today with Angel One for a hassle-free process.
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
