Which is the Best Performing Mutual Fund now?

Which is the best performing mutual fund in India?

Is there a single fund that always stays on top, no matter the market conditions?

Many investors ask for the top performing mutual fund for SIP with the hope of guaranteed returns — but can past performance really predict the future?

Let’s dig deeper into what ‘best performing’ truly means for your investments.

Table of Contents

1.Best Performing Mutual Fund – A Frequently Asked Question
2.Best Performing Mutual Fund for SIP
3.Relevance of Best Performing Mutual Fund
4.How To Find The Best Performing Mutual Fund in India?
5.Probability vs Assurance – Assessing Best Performing Mutual Fund
6.Some Points to Ponder Over “Best Performing Mutual Fund”
7.Does the “Best Performing Mutual Fund” Stay the Same Every Year?
8.Beyond The Subjective View – How to Find the “Top Performing Mutual Fund in India?”
9.Beyond Best Performing Mutual Fund

• • Requirement Study
  • Consistency
  • Existing Portfolio

10.Final Thoughts On “Best Performing Mutual Fund”

1.Best Performing Mutual Fund – A Frequently Asked Question

During my TV interviews, every show, either the anchor or one of the callers will ask these questions.

• Which is the Best Performing Mutual Fund in India now?
• Which is the best-performing equity funds now?
• What are the top-performing mutual funds to invest in now?

There is not a single show in which the questions about Best Performing Mutual Fund have not been asked.

Also, as a guest speaker, whenever I deliver a speech in Rotary, Lions, Jaycees, or Round Table, during the Q&A Session after the speech, definitely there will be a question on Best Performing Mutual Funds.

Everyone is interested in knowing which is the Best Performing Mutual Fund in India now.

The reason behind this is that they would like to verify whether the scheme in which they have already invested is part of the best-performing mutual funds in India or not.

If it is not part of the top-performing mutual fund, they would like to switch their investments to the current best-performing mutual fund.

There are so many websites that rate mutual fund schemes, and list down the top-performing mutual funds schemes in every category.

However, instead of just chasing top performing mutual funds in India, it is important to understand whether such funds align with your goals, time horizon, and risk appetite.

2.Best Performing Mutual Fund for SIP

Whether it is a SIP investment or lump-sum investment, we always want to have the best for us.

But what is the extent of relevance of a highest-performing Mutual Fund Performing Mutual Fund in SIP or even in a lump sum investment?

So opting for good-performing mutual Funds in any category is that easy.

For SIP investors, many often ask – which mutual fund is performing best now?

While SIP is a disciplined approach, blindly switching to the so-called best performing MF may not always give the best results.

3.Relevance of Best Performing Mutual Fund

Before you make any swift investment decision this is the question to ask yourself…

Can a best-performing mutual fund now continue to be a best-performing mutual fund even after a week, after a month, after a quarter, after a year…?

Then in that case, do we intend to switch our investments every week or quarter to stick with the best-performing mutual fund of the time?

If it is a SIP investment, we cannot switch to the best-performing mutual fund for every SIP investment right?

Is it possible for a cricketer to score a century in every match?

Similarly, it is impossible for a particular Mutual Fund to retain its place as best-performing Mutual Fund over time.

That’s why instead of only chasing the best performer mutual fund of the week, investors should focus on consistent performing mutual funds which can deliver steady returns over the long term.

4.How to Find The Best Performing Mutual Fund in India?

Even though this is completely ironic to the above question, the truth is,

“Don’t chase after the Best-Performing Mutual Fund!”

Regardless of the Mutual Fund scheme, the performance shown is history.

Past performance is just a guide to check how well the fund manager did in the past. And how well the fund has performed in the past.

“The longer the period in which the best-performing Mutual Fund is shortlisted the better”.

For example, instead of asking which are the best performing mutual funds in India now, it is wiser to analyze the best performing mutual funds last 20 years in India to see which funds have survived and outperformed in the long run.

5.Probability vs Assurance – Assessing Best Performing Mutual Fund

Looking at past performance is just like having a look at the resume of a job applicant.

The applicant may be a topper in college or be the best-performing employee in his previous organisation.

However, that only provides the probability, and not the assurance, that he will be one in the future.

“The individual investor should act consistently as an investor and not as a speculator.”
                                                                                                       – Ben Graham

I am not saying, that one should not look at the performance of the mutual fund schemes.

Considering the performance of mutual funds is an important step in the selection criteria.

But don’t give over weightage to the performance or solely choose a fund based on Past-Performance.

Don’t look only at the Best Performing Mutual Fund now.

Before you choose an ideal fund or the good performing Mutual Funds for yourself you might need to consider other factors as well.

Remember – the best performance mutual fund today may not remain the top performer mutual fund tomorrow.

Hence, your investment decision should be based on goals and asset allocation.

6.Some Points to Ponder Over “Best Performing Mutual Fund”

Do you walk into a hospital or a pharmacy and ask them, “Which is the best curing medicine now?”

Even if you ask, will they be able to give you the right medicine?

Can a best-playing cricketer, fit into a T20 match as well as a Test match?

Both matches have got different formats. So the best player in one format may not be the best player in the other format.

Similarly, a readymade list of best-performing mutual funds will not fit you, your neighbour, your brother as well as your colleague.

The fact is that the best-performing can’t cater to investors with Risk Appetite.

7.Does the “Best Performing Mutual Fund” Stay the Same Every Year?

The short answer is no. The best performing mutual fund in one year may not retain the same spot the next year.

Market conditions, sector performance, and fund management decisions can all cause changes in rankings.

That’s why simply investing based on last year’s top performer can be risky.

Instead, focus on a fund’s long-term consistency, expense ratio, portfolio allocation, and alignment with your financial goals.

This approach helps you avoid the trap of chasing returns and ensures that your investments remain stable across different market cycles.

8.Beyond The Subjective View – How to Find the “Top Performing Mutual Fund in India?”

As we all have different financial needs and goals, we need different schemes to suit our needs and goals. A best-performing mutual fund scheme that is suitable to my siblings need not be suitable for me.

This question keeps bugging every new investor as well as an expert,

How to find the “Top Performing Mutual Fund in India?”

Of course, there is no concrete answer to this, if there is a single answer to this question then all the other funds in the market would go bankrupt!

But wait, there is still a way, you have to go beyond this thought of “best performing Mutual Fund”

Our subjective influences from the past always come in the way of deciding the best mutual fund today.

It is safe to assume that it is highly difficult even for a seasoned or pro-investor to categorize the Top Performing mutual funds of all time.

But, how can we look at the “Best Performing Mutual Fund” objectively?

9.Beyond Best Performing Mutual Fund:

From the illustration, it must be very clear to you, that there are some other important parameters to be looked at beyond performance.

Let’s look at them one by one.

Requirement Study:

You should select a mutual fund, which is suitable to your requirement. To do this, you should know exactly your requirements needs exactly.

Then you need to select the fund that is suitable to meet your requirements.

It is important to fix a goal. But, it is more important to fix a corpus that you might require to attain the goal.

While calculating the corpus you should not just consider current prices but also taking into account the inflation rates of the future.

Consistency:

Instead of focusing on which is the best-performing mutual fund now, you need to focus on the consistently performing fund over a longer period.

Instead of choosing a fund that has been the best-performing mutual fund recently, you may choose a fund that is not on the list of best-performing mutual funds of this quarter but has been a consistent long-term performer for over 7 years.

What is so great about consistency?

Because it helps you to get considerable returns even at the time of market fluctuation.

A best-performing fund is performing well because the fund aligns well with the current market situation.

You can change your fund, but can you change the way the market functions?

So consistency scores over the recent performance.

Existing Portfolio:

Also, you need to select a fund that is not very similar when compared to your existing mutual fund investments.

Imagine if your Investment Portfolio is a collection of Top Performing Mutual Funds then there is more probability of having a higher overlap ratio.

Having too many best performing MFs in the same category doesn’t add value; instead, it may cause duplication and higher risks.

Irrespective of the fact that you own a similar fund already if you invest in a fund just because it entered into the list of best-performing mutual funds.

It is like taking one more paracetamol tablet along with your regular paracetamol tablet of a different brand.

This will lead to duplication and over-exposure.

Considering all these factors along with the list of best-performing mutual fund schemes will help you choose a fund for you instead of looking at just the overall list of best-performing mutual fund schemes.

10.Final Thoughts On “Best Performing Mutual Fund”

Investments are just tools like a hammer.

If you are in the process of building your dream house, you need to concentrate on the home that you would like to live in with your family members for the rest of your life and not on the type of hammer to buy.

Instead of asking “which mutual fund is best”, the better question is – “which mutual fund is best for my goals?”

You need to keep in mind that investments are not ends in themselves.

They only hand around to facilitate realizing the superior goals in our lives.

To realize the superior goals of our lives, we need to create a complete and comprehensive financial plan that covers everything from goal setting to execution towards goal achievement.

Please don’t make important financial planning decisions just by surfing through social media platforms like Twitter, Facebook, Quora, etc.

Only A professional financial planner is qualified to handle your hard-earned money.

To create a sound financial plan, I strongly recommend you take advantage of our free financial consultation. The link to avail the free consultation is given below.