Top 5 Mutual Funds to Invest in 2020 Which May Help you Retire Rich

Thanks to campaigns like “Mutual Funds Sahi Hain”, the popularity of this asset class has grown over the years. Mutual funds can help you build a corpus for various life goals in a disciplined and sustained manner. An essential goal which you can achieve by investing in mutual funds is retirement. Given below are five funds investing in which may help you retire rich.

Launched in 2002 [1] , Aditya Birla Sunlife Frontline Equity Mutual Fund has given 19.93% [2] return since its launch. A large-cap fund, it primarily invests in companies from the S&P BSE 200 Index. Diversification across industries gives this fund stability and can help you achieve long term capital growth.Diversification also avoids concentration risk in a single sector and dependence on a particular industry. As the fund focuses on large-cap stocks across industries, it has the potential to arrest a slide in case of a market downturn. As on November 18, 2019, the 10-year annualised return of the fund stood at 11.46% [3].

Another large-cap equity fund, it has delivered return of 12.31% [4] since its launch in 2010. Keeping in line with the philosophy of “quality at a reasonable price”, the fund focuses on firms with robust management pedigree.Though a relatively new entrant in the large-cap category, it has been successful in beating its benchmark and category in several years since its launch. Focussing on quality stocks, the fund can help you compound wealth in the long-term. As of November 18, 2019, the annualised 5-year return of the fund stood at 10.34%.

This fund, launched in 1996, was known as HDFC Top 200. Post re-categorisation by market regulator SEBI, it has shifted its mandate to invest in top 100 stocks. Since its launch, the fund has given 19.45% [5] return.
A sizeable allocation of the fund is in large-cap stocks and its timely shift in stock preferences, and stocks have helped it deliver strong performance over the years. As of November 18, 2019, the 10-year annualised return of the fund stood at 10.74% (see pic 3).

Another player in the large-cap space, ICICI PruBlueChip Fund has tweaked its mandate to maintain 80% exposure in top 100 stocks by market capitalisation, in line with SEBI’s mandate. Launched in 2008, the fund invests in large-cap firms that have robust management.Since its launch, it has delivered 13.64% [6] returns. As of November 18, 2019, the 10-year annualised return of the fund stood at 12.64% (see pic 4).

Earlier known as Mirae Asset India Equity Fund, this fund was renamed from May 2019. With a large-cap heavy portfolio, the returns of the fund since its launch stands at 15.43% [7] .
Buying quality stocks at reasonable valuations, the 10-year annualised return of the fund as of November 18, 2019, stood at 14.71% (see pic 5). The final word Adopting the mutual fund route gives you the advantage of professional fund management. Apart from the funds mentioned above, there are many other funds which you can opt for to build a sizeable retirement nest.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.