Top 5 Mutual Funds 2022

I had two Mutual Funds in my Portfolio — PPFAS Long Term Equity and Axis Long Term Equity. A month or so ago I read the news of the front running scandal at Axis MF and the ensuing investigation by SEBI. I decided to move my investments out of Axis MF because in my understanding there is never just one single slip up just like there is never just one single cockroach in the kitchen.

https://www.business-standard.com/article/markets/front-running-scandal-rocks-31-billion-investing-giant-axis-mutual-fund-122071300188_1.html

Long story short, I started looking for a replacement for Axis LTE in my portfolio and found the following top 5 in different categories

1. Flexi Cap — This category doesnt place any constraints on the fund manager in choosing stocks and invests across various market capitalizations, i.e. large-caps, mid-caps & small-caps.
   Top fund — PPFAS Long Term Equity
   Honourable mention — Quant Active fund
2. Small Cap — These mutual funds select stocks for investment from the small cap category, which includes all stocks except largest 250 stocks.
   Top fund — SBI Small Cap fund and Nippon India Small Cap fund
3. Large and Mid cap — These mutual funds select stocks for investment from the largest 250 stocks listed in the Indian markets (highest market capitalization).
   Top fund — Mirae Asset Emerging Bluechip fund
4. Mid Cap — These mutual funds select stocks for investment from the mid cap category — stocks ranked between 100 to 250 by size. This is restrictive and limits the choice of companies to just 150 companies.
   Top fund — Kotak Emerging Equity fund
5. Large Cap — These mutual funds select stocks for investment from the largest 100 stocks listed in the Indian markets (highest market capitalization). Again like Mid cap this category of funds is also restricted to just 100 stocks. It is better to choose funds with lower expense ratio in this category because the room for fund manager to show skill in stock picking is extremely narrow.
   Top fund — ICICI Nifty 50 Index fund

Disclaimer — Please do your own research before investing. All funds discussed above are Direct Growth variants.

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