If you are looking for Best Mutual Funds to invest in 2022 for SIP in long term, then you are at the right place. In this article we will see the TOP 5 mutual funds that you should invest in 2022 with a time horizon of at least 3 years or 5 years for better returns.
The future is Index Mutual funds and we have 2 index funds at the top of the list of Best Mutual Funds to Invest in 2022. These mutual funds belong to large cap and mid cap categories and hence represents the top 250 companies in India as far as market capitalization is concerned. These mutual funds are selected based on expense ratio, AUM, portfolio of stocks under them and future predicted performances of these stocks. You can invest in these mutual funds via SIP (Systematic Investment Plan) over long term to get better returns
Best Mutual Funds to Invest in 2022 Video
If you are new to investment in Mutual Funds and want to learn basics, I have started a Mutual Funds for Beginners Video Series on YouTube to help you understand the basics of mutual funds. Do check out the video series on YouTube Channel
Let’s get started with the TOP 5 mutual funds to invest in 2022 from below. Number 5 is..
5. Mirae Asset Emerging Bluechip Fund
- This fund belongs to Large & Mid cap category
- Currently it has an Expense Ratio of 0.68%
- The total AUM (Asset Under Management) is Rs. 21,263 Cr which is highest out of the 5 mutual funds we will see in this post
- The 3 year returns in this mutual fund is 29.46%
Who should invest?
Since this is a large and mid cap category fund, it invests in top 250 companies in India as far as market capitalization is concerned. So those who can take some risks due to mid cap exposure of this mutual fund should invest with a time horizon of at least 3 years to 5 years.
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4. Axis Small Cap Fund
- This fund belongs to Small cap category
- Currently it has an Expense Ratio of 0.38% which is pretty low for a small cap fund
- The total AUM (Asset Under Management) is Rs. 7,303 Cr, so a lot of people also invests in this fund
- The 3 year returns in this mutual fund is 35.16%
Who should invest?
If you are looking for excellent returns in the period of 3 years to 5 years and are also ready to take some risks, you should invest in this mutual fund. Since it belongs to small cap category, this mutual fund comes with high risks but the rewards are also high. You should think of long term investment when investing in Axis Small Cap fund since high risk doesn’t necessarily means high rewards in short term. So go with this fund only with long term goals.
ALSO READ: SIP & Lump sum calculator for NEXT 30 Years [EXCEL VIDEO]
3. Axis Growth Opportunity Fund
- This fund belongs to Large & Mid cap category
- Currently it has an Expense Ratio of 0.51% which is less than Mirae Asset Emerging Bluechip fund mentioned above in same category
- The total AUM (Asset Under Management) is Rs. 4,680 Cr
- The 3 year returns in this mutual fund is 31.22%
Who should invest?
Again, since this is a large and mid cap category fund, it invests in top 250 companies in India as far as market capitalization is concerned. So those who can take some risks due to mid cap exposure of this mutual fund should invest with a time horizon of at least 3 years to 5 years.
2. HDFC Index Fund Sensex Plan
- This fund belongs to Large cap category
- Currently it has an Expense Ratio of 0.20% which is the least in all the mutual funds we discussed in this post
- The total AUM (Asset Under Management) is Rs. 2,651 Cr
- The 3 year returns in this mutual fund is 20.63%
Who should invest?
Since this fund belongs to large cap category and it invests in top 30 companies in BSE (Bombay Stock Exchange) in sensex index, the companies are very huge and probability of such companies failing is negligible so it comes with low risks. So if you want to invest in a low risk index mutual fund and in large companies, this is the mutual fund you should invest in.
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1. Motilal Oswal Nifty Midcap 150 Index Fund
- This fund belongs to Mid cap category
- Currently it has an Expense Ratio of 0.21% which is very low compared to other active Mutual Funds
- The total AUM (Asset Under Management) is Rs. 367 Cr
- The 2 year returns in this mutual fund is 41.55%
Who should invest?
Since this mutual fund is new (launched in September 2019), it has low AUM for now. But it has a huge potential in upcoming years since it belongs to mid cap category and is an Index fund. So if you invest in this mutual fund, you will be investing in companies between rank 101 to 250 as far as market capitalization is concerned. These companies are the future large cap companies and can show you growth at rapid pace. But it equally has some risks due to exposure to mid cap companies.
So if you are ready to take some risks for good profits you can invests in this mid cap index fund or else you can go for low risk large cap index fund mentioned above at rank #2.
ALSO READ: SIP Returns Calculation for NEXT 20 Years [EXCEL VIDEO]
Conclusion
So these were the best mutual funds that are expected to give better returns in 2022 and upcoming years. Remember that past returns does not guarantee future returns and you should invest in mutual funds based on your risk appetite. The top 2 mutual funds in the list covers the top 250 companies in India and thus helps you investing in these companies belonging to large and mid cap categories.
Here is the summary of Mutual Funds we discussed in this post:
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