Indian Mutual Funds to watch out for in 2024
Note: This post was written in May 2024 and reflects fund research from that period. Market conditions, fund performance, and regulatory situations have changed since then. Treat this as a historical snapshot — please conduct your own current research before investing.
Here are some funds I was tracking in 2024, selected based on their category characteristics and available data at the time. I've grouped them by category and noted whether each is a passive index fund or an actively managed fund — an important distinction for cost-conscious investors.
Always invest in the Direct Growth plan of any mutual fund, not the Regular plan, to avoid distributor commissions and keep your full returns.
Large cap index funds (Passive — Low to Moderate Risk) #
Selected for their low expense ratios and broad large cap exposure. Index funds in the same category should be compared on tracking error and TER before investing.
- Motilal Oswal S&P BSE Enhanced Value Index Fund (Factor/Value index — BSE 100 universe, not purely large cap)
- DSP NIFTY Next 50 Index Fund
- DSP Nifty 50 Equal Weight Index Fund
- Bandhan Nifty 50 Index Fund
- ICICI Prudential S&P BSE Sensex Index Fund
Mid cap index funds (Passive — Moderate to High Risk) #
- Edelweiss Nifty Midcap150 Momentum 50 Index Fund (Momentum factor index)
- Nippon India Nifty Midcap 150 Index Fund
Small cap index funds (Passive — High Risk) #
Suitable for investors with a minimum 10-year horizon who can tolerate significant short-term drawdowns.
- Axis Nifty Smallcap 50 Index Fund
- Kotak Nifty Smallcap 50 Index Fund
- Edelweiss Nifty Smallcap 250 Index Fund (broader exposure than Smallcap 50)
Micro cap index funds (Passive — Very High Risk) #
Highest volatility category. Only suitable for investors with a 10+ year horizon and high risk tolerance.
- Motilal Oswal Nifty Microcap 250 Index Fund
Multi cap funds (Actively Managed — Moderate to High Risk) #
- Mahindra Manulife Multi Cap Fund
- HSBC Multi Cap Fund
- Tata Multicap Fund
- ITI Multi-Cap Fund
Flexi cap funds (Actively Managed — Moderate to High Risk) #
- HDFC Flexi Cap Fund
- JM Flexicap Fund
- Edelweiss Flexi Cap Fund
- Franklin India Flexi Cap Fund
Quant AMC notice: Quant Flexi Cap Fund has been removed from this section. Quant AMC was subject to a SEBI search-and-seizure operation in June 2024 over front-running allegations. Please review the current regulatory standing of any Quant AMC fund before investing.
Large cap funds (Actively Managed — Low to Moderate Risk) #
- Nippon India Large Cap Fund
- ICICI Prudential Bluechip Fund
- Tata Large Cap Fund
Mid cap funds (Actively Managed — Moderate to High Risk) #
- Motilal Oswal Midcap Fund
- Mahindra Manulife Mid Cap Fund
- Edelweiss Mid Cap Fund
- Invesco India Midcap Fund
Quant AMC notice: Quant Mid Cap Fund has been removed from this section. See the note above regarding Quant AMC's regulatory situation.
Small cap funds (Actively Managed — High Risk) #
- HSBC Small Cap Fund
- Tata Small Cap Fund
- HDFC Small Cap Fund
- Mahindra Manulife Small Cap Fund
Quant AMC notice: Quant Small Cap Fund has been removed from this section. See the note above regarding Quant AMC's regulatory situation.
ELSS funds (Actively Managed — Moderate to High Risk, 3-year lock-in) #
ELSS funds qualify for tax deduction under Section 80C. They carry a mandatory 3-year lock-in per investment installment.
- HDFC ELSS Tax Saver
- Motilal Oswal ELSS Tax Saver Fund
- Bandhan ELSS Tax Saver Fund
- Parag Parikh ELSS Tax Saver Fund
Quant AMC notice: Quant ELSS Tax Saver Fund has been removed from this section. See the note above regarding Quant AMC's regulatory situation.
NASDAQ index funds (Passive — High Risk, USD currency exposure) #
- ICICI Prudential NASDAQ 100 Index Fund
Disclaimer: I am neither a professionally certified financial analyst nor a SEBI-registered investment advisor. The funds listed above are for informational and research purposes only and do not constitute professional financial advice or a recommendation to buy. Please consult a SEBI-registered investment advisor and conduct your own due diligence before making any investment decisions.