Let's glance at the best-performing mutual funds of the past year. We’ll learn more about their features to find a suitable investment for you.

The Indian stock market has been on a general uptick in the last few years. With the Sensex and Nifty posting their best returns in years, it's not surprising that several investors are looking for the best-performing mutual funds to invest in.

To help you in the process, we've compiled a listVaranasi Investment. These funds have all delivered returns in the last year and are well-placed to continue delivering solid returns.

Quant Small Cap Fund - Direct Plan-Growth

Aditya Birla Sun Life Digital India Fund Growth

Tata Digital India Fund Regular Growth

Quant Infrastructure Fund Growth

Motilal Oswal NASDAQ 100 ETF Growth

PGIM India Midcap Opportunities Fund Regular Growth

Quant Small Cap Fund Growth

Motilal Oswal Nasdaq 100 Fund of Fund Regular Growth

Quant Infrastructure Fund - Direct Plan-Growth

BOI AXA SMALL CAP FUND Direct Plan-Growth

DSP Healthcare Fund - Direct-Growth

ICICI Prudential Ultra Short Term Fund - Direct Plan - Daily IDCW Payout

ICICI Prudential India Opportunities Fund Direct Plan-Growth

Aditya Birla Sun Life CEF - Global Agri Plan - Growth-Direct Plan

ICICI Prudential Multicap Fund - Dividend

IDFC Government Securities Fund - Constant Maturity Regular - Growth

Nippon India Nivesh Lakshya Fund - Regular Plan-Growth

IDFC Government Securities Fund - Investment Plan - Regular Plan-Growth

Nippon India Gilt Securities Fund - Direct Plan Defined Maturity Date Option - Growth

Aditya Birla Sun Life Government Securities Fund Direct Plan-Growth Instant Gain

Quant Absolute Fund Growth

Quant Multi-Asset Fund Growth

Quant Multi-Asset Fund - Direct Plan-Growth

Quant Absolute Fund - Direct Plan-Growth

ICICI Prudential Pharma Healthcare and Diagnostics (PhD) Fund Direct Plan-Growth

ICICI Prudential Thematic Advantage Fund (FO) Growth

BOI AXA Mid & Small Cap Equity & Debt Fund Regular Growth

HDFC Retirement Savings Fund - Equity Plan - Regular Plan

BOI AXA Mid & Small Cap Equity & Debt Fund - Direct Plan-Growth

ICICI Prudential Thematic Advantage Fund (FOF) - Direct Plan-Growth

Mutual funds are a popular and versatile investment choice. They offer the potential for high returns while providing diversification and professional management. With around 44 mutual fund companies and several schemes being introduced to the market each year, investors are spoilt for choice with mutual fund options. In fact, the year 2022 saw 149 new schemes being added to the mutual fund market.

There are two main types of mutual funds:

Index funds that track a specific market index, such as the S&P 500, to generate returns aligned with that index. These are more diversified and have lower fees but also generate lower returns.

Actively managed funds that are controlled by professional investors who seek to outperform a specific market indexSimla Stock. These can generate higher returns but also come with higher costs.

When evaluating different funds, there are a few things you should consider - the fund’s performance over the past 1, 5, and 10 years. You should also look at the fund's asset allocation. This is how the fund invests its money. Some funds invest primarily in stocks, while others invest in bonds or cash. It is best to ensure the fund's asset allocation aligns with your investment goals.

Here’s how to make the best mutual fund investments for you.

Before investing in a mutual fund, it's essential to understand your investment goals clearly. What you want to achieve with your investment. If you’re looking to generate income, grow wealth or preserve your invested amount.

Your investment goals will help you determine what type of mutual fund is the right fit for you. For example, if you want to generate income, you may want to invest in a fund focusing on dividend-paying stocks. And if you want to grow your wealth, you may want to invest in a fund that invests in growth stocks.

Mutual funds come with different risk levels. So, choosing a fund that's in line with your risk tolerance is crucial.

If you're a conservative investor, you may want to invest in a fund with a lower risk level. Conversely, if you're a more aggressive investor, you may be willing to take on more risk to increase the potential of higher returns.Pune Wealth Management

When considering investing in a mutual fund, reviewing the fund's performance is essential. How has the fund performed in the pastGuoabong Investment? Has it outperformed other funds in its category? What is the fund manager’s experience?

You can find this relevant information by reviewing the fund's prospectus or performance history and details.

Once you've narrowed your choices to a few potential funds, it's time for independent researchAgra Investment. The best and first place to start, is by reading the fund's prospectus.

The prospectus will provide essential information about the fund, including its investment objectives, strategies, and risks. It is vital to read and understand the prospectus before investing in any mutual fund.

Choosing the right mutual fund for you may take some research and effort, especially if you are new to the process. However, if you take the time to define your investment goals, consider your risk tolerance, and review the fund's performance and fees, you should be able to find the ideal fund for your requirement.

Fund ratings can give you a good idea of how well the fund has performed in the past and how likely it is to perform well in the future.

There are a few different ways that mutual funds can be rated. One of the most popular methods is by using Morningstar ratings. Morningstar is a leading investment research provider, and they rate mutual funds based on various factors, including past performance, fees, and risk.

Another popular method for rating mutual funds is by using Lipper Leader ratings. Lipper Leader ratings are based on a fund's total return, which considers capital gains and dividends. The ratings also consider a fund's volatility, measured by how much the fund's price fluctuates.

While these are some of the few things to consider while looking for the top-performing mutual funds for your needs, also check details like the fund house’s past performance, fund manager expertise, market trends, expense ratio, liquidity and how the gains will be taxed. Once you have found the top-performing mutual funds for your needs, you can choose to invest in it via a systematic investment plan (SIP)or a lump sum. However you choose to invest, mutual funds can be a great way to grow your wealth and reach your financial goals.

Note: To help plan your trading activities and investment strategies, find here the NSE Holidays 2024, BSE Holidays 2024, MCX Holidays 2024, and Muhurat Trading 2024. Also see here to know more about the stock market timings.