Holi represents the coming of pious prosperity. On many festivals, we Indians donate to the Gods and the poor and pray for the prosperity of ourselves, our families and our civilisation. However, in modern times, one of the easily implementable ways for a common person to contribute to their own wealth and to the wealth of their country is to invest in a mutual fund.
Mutual funds act as a pool of funds from various individuals and entities which can then be channelled into specific investments that are likely to give high returns. This means the following –
- They can help ensure that the cumulative capital of the country’s households is used for the most efficient wealth-creating purposes (including through equity investments) and is not sitting idle in a bank account (where the investment of that capital is restricted to debt instruments mostly).
- Therefore, they can help ensure that our country’s GDP is growing at the fastest rate possible as there is greater availability of money for businesses.
- Simultaneously, it creates immense wealth for all those people who invest in them, allowing them to earn even as high as 25% returns per annum, instead of the meagre 3-6% in savings and fixed deposit accounts of banks.
Keeping this in mind, the following are some of the mutual funds that you can consider investing in this holi –
5 mutual funds that you can invest in this Holi
| Fund Category | Fund Name | 3Y returns annualised | 5Y returns annualised |
| Small cap – equity | Kotak Small Cap Fund – Direct (G) | 30.42% | 16.78% |
| Mid cap – equity | Quant Mid cap Fund – Direct Growth | 35.94% | 20.29% |
| Large cap – equity | Nippon India Large Cap Fund Direct Growth | 19.32% | 11.91% |
| Multi cap – equity | Quant Active Fund Direct Growth | 35.20% | 20.05% |
| Debt Fund | Aditya Birla Sun Life Medium Term Direct Plan Growth | 13.73% | 8.69% |
Kotak Small Cap Fund – Direct (G)
It is a ₹ 8,498 cr fund which has its investments largely in the chemicals, consumer goods, metals/mining and capital goods sectors – the largest investment being in Carborundum Universal Ltd.
Quant Mid cap Fund – Direct Growth
It is a ₹ 1,329 cr fund with investments focused on the financial sector (30%) among others. Its largest investments are in Punjab National Bank and ITC Ltd.
Nippon India Large Cap Fund Direct Growth
This fund also has a special focus on the financial sector (33.5%) although its largest investments are in L&T Ltd. and Reliance Industries Ltd. Its total AUM is ₹ 12,612 cr.
Quant Active Fund Direct Growth
The second Quant fund on this list has a total AUM size of ₹ 3,544 cr. It has its largest investments in ITC Ltd (8.8%), although, being a multi cap fund, it has investments in smaller companies as well such as Gokaldas Exports Ltd.
Aditya Birla Sun Life Medium Term Direct Plan Growth
This fund has nearly 33.4% of its investments in government securities and another 29.5% investments in debt instruments of the financial sector. Its total AUM is ₹ 1,646 cr.
Conclusion
Investing in mutual funds is like a gift that you give to your future self and also perhaps, your family and future generations. So do not miss an opportunity to gift yourself this Holi. In order to start investing in mutual funds, open demat account with Angel One and explore all the mutual funds available in the market today!
Disclaimer: This article has been written for educational purposes only. The securities mentioned are only examples and not recommendations.
