Top 8 Equity Mutual Funds to Invest in June as Markets Hit Fresh Lifetime Highs | Expert Insights

top equity mutual funds to invest in june as markets hit fresh lifetime highs | expert insights

Benchmark equity indices Sensex and Nifty hit their new closing lifetime highs on Friday, following buying in market heavyweights HDFC Bank, Reliance Industries and Mahindra & Mahindra amid encouraging export data. On a weekly basis, the BSE benchmark climbed 299.41 points or 0.39 per cent, while the Nifty advanced 175.45 points or 0.75 per cent.

Investment in equities mutual funds can be a sound long-term wealth-building strategy. With so many options available, it can be tough to decide which ones best suit your financial goals and risk tolerance. Pranjal Bansal, Partner A A P T & Associates, Chartered Accountants shared a set of the top equities funds with strong growth prospects with an in-depth look at each of these funds.

1) Nippon India Small Cap Fund: Direct Plan for Growth

The Nippon India Small Cap Fund offers an appealing choice for investors looking to capitalize on the development potential of small-cap companies. This fund's success has been consistent thanks to its wide portfolio spanning numerous sectors. The fund manager's intelligent stock selection strategy concentrates on high-growth companies that are under-researched but have significant upside potential. However, it is important to note that small-cap funds are more volatile, making them appropriate for investors with a high-risk threshold and an extended investment horizon.

2) Quant ELSS Tax Saver Fund: Direct Plan-Growth

The Quant ELSS Tax Saver Fund is an excellent solution for people looking to save on taxes while investing in the stock market. The Equity Linked Savings Scheme (ELSS) not only offers tax breaks under Section 80C of the Income Tax Act, but it has also demonstrated a track record of providing better returns. The fund's growth strategy revolves around finding high-quality businesses with a long-term competitive edge. Its methodical strategy for risk management and sectoral allocation makes it a reliable option for tax-free investments with growth potential.

3) Quant Small Cap Fund: Direct Plan-Growth

In the small-cap category, the Quant Small Cap Fund deserves special note. This fund seeks long-term financial appreciation by investing mostly in small-cap firms. The fund manager takes a bottom-up approach to company selection, focusing on fundamentally sound companies with good growth prospects. The portfolio's diversification across industries reduces risk while positioning the fund for excellent returns. Investors seeking rapid growth and the ability to tolerate short-term market swings may find this fund appealing.

4) Motilal Oswal Midcap Fund: Direct Plan for Growth

Midcap funds mix the growth potential of small caps with the stability of large caps. The Motilal Oswal Midcap Fund is a standout in this area, with a rigorous investment approach that focuses on discovering outstanding mid-sized companies with strong management teams and healthy financials. The fund's concentrated portfolio allows for high-conviction investments, which can yield significant long-term gains. This makes it ideal for investors looking for large gains without the high volatility that comes with small-cap funds.

5) Invesco India Mid Cap Fund, Direct Plan-Growth

The Invesco India Mid Cap Fund is another great option for midcap investors. This fund focuses on firms that have a proven track record of revenue and profit development, good management practices, and long-term competitive advantages. The fund's disciplined investing strategy and rigorous research methodology result in a well-balanced portfolio that can withstand market volatility while producing consistent returns. It is appropriate for investors with a moderate risk tolerance seeking exposure to mid-sized businesses.

6) Axis Value Fund: Direct Plan-Growth

Value investing entails selecting stocks that appear to be trading at less than their intrinsic value. The Axis Value Fund follows this strategy, looking for inexpensive firms with excellent fundamentals. This fund's strategy of investing in undervalued firms with turnaround potential might result in substantial returns when the market recognizes their true value over time. It's ideal for individuals who prefer a contrarian investment approach and are willing to wait for the market to fix these mispricings.

7) Axis Multicap Fund: Direct Plan-Growth

For investors seeking a well-diversified equity portfolio, the Axis Multicap Fund is a versatile solution. This fund invests in large-cap, mid-cap, and small-cap equities, ensuring a balanced exposure to the market. The fund manager's adaptable methodology enables adjustments based on market conditions, maximizing returns while reducing risk. This makes it an ideal choice for investors looking for a comprehensive equities investment without the need to manage multiple funds.

8) Canara Robeco Infrastructure: Direct Plan-Growth

Infrastructure development is a key engine of economic growth, and the Canara Robeco Infrastructure Fund intends to capitalize on this trend. This fund invests in infrastructure-related businesses such as construction, engineering, and utilities. Given the Indian government's emphasis on infrastructure development, this industry offers significant growth potential. The fund's tailored investing approach appeals to investors seeking to capitalize on the infrastructure sector's long-term growth potential.

Choosing a suitable equity mutual fund is essential for creating a strong investing portfolio. Each of the funds described above has distinct advantages, catering to a variety of investing strategies and risk profiles. Whether you choose to invest in small-cap, mid-cap, or diversified funds, these carefully selected solutions provide significant growth potential. Remember that, while historical performance is an important signal, you must also align your investing decisions with your financial objectives, risk tolerance, and investment horizon. Happy investing!

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