2024 Picks: One-Year Mutual Funds

 For those seeking relatively quick returns or managing financial goals within a limited timeframe, mutual funds could make a substantial difference. Mutual funds, essentially pools of money managed by professionals, provide a straightforward way for individuals to invest in diverse portfolios. If you’re aiming for short-term gains (think 1 year), these funds can be an excellent choice.

This guide is designed to simplify the often complex world of finance, offering insights to help you make informed choices. Explore the potential of mutual funds tailored for the next year, and let your money work for you in a way that aligns with your financial objectives.

List of 1-Year Mutual Funds to Invest in 2024

Baroda BNP Paribas Ultra Short Duration Fund

Established on June 1, 2018, this fund is an excellent investment option offering low-risk exposure to debt instruments. As of January 15, 2024, the Net Asset Value (NAV) is ₹1386.9322, showcasing steady growth at a Compound Annual Growth Rate (CAGR) of 5.72% over the past five years. Managed by Vikram Pamnani since December 2017, the fund has demonstrated resilience, accumulating assets worth ₹1520.53 Crores as of November 30, 2023. For a one-year investment plan, this fund can be a favourable choice.

Mirae Asset Ultra Short Duration Fund

This fund mainly invests in safe debt options, aiming for low-risk returns. As of January 15, 2024, it has a moderate risk level and an NAV of ₹1182.1253. With a fund size of ₹546.17 Cr and an expense ratio of 0.21%, lower than the category average. It has shown good performance, giving 7.43% returns over the past year, beating the CRISIL 10-Year Gilt Index. It’s designed for short-term investments, offering an alternative to regular bank accounts.

Axis Liquid Fund

Axis Liquid Fund is a 5-star rated debt mutual fund with low to moderate risk. As of January 15, 2024, its Net Asset Value (NAV) is ₹2623.4567, showing a 7.11% return over the past year. The fund focuses on safe investments in the money market and quality debt securities to provide reasonable low-risk returns. It has a low expense ratio of 0.24%, indicating efficient management. Investors looking for short-term alternatives to bank accounts may find it suitable. However, whether it’s a good choice for a one-year investment plan depends on individual goals and risk tolerance, requiring consideration and possibly consultation with a financial advisor.

Nippon India Ultra Short Duration Fund

It is a type of limited-time savings account. Nippon India has been doing well, providing around 7.28% returns annually over the last three years and 5.75% in the last 5 years. You can start with just ₹100, and it falls under the debt category of Nippon India Mutual Funds. These funds give you quick access to your money, shield you from interest rate swings, and provide regular returns. If you’re thinking of investing for a year, Nippon India and similar funds could be a good bet for stability and decent returns.

Franklin India Prima Fund

It is a mid-cap mutual fund that has demonstrated strong performance, delivering an impressive annualized return of 19.23% as of November 30, 2023. With over 2,80,000 investors and a minimum investment of ₹5000, the fund offers accessibility to a diverse range of investors. While it has shown resilience, it’s important to note that Franklin India Prima Fund, is typically better suited for longer-term investment.

Tata Equity P/E Fund

Tata Equity P/E Fund is a growth-oriented value fund that aims to invest in companies with lower valuations compared to the market. With a history of nearly 20 years since June 29, 2004, the fund follows a strategy of seeking growth within stocks identified as having good value. It has shown a strong 24.14% annual growth in the past year as of November 30, 2023. Those considering a one-year investment plan might find the fund attractive due to its disciplined approach and positive performance trend.

The WhiteOak Capital Mid Cap Fund – Regular Plan

The WhiteOak Capital Mid Cap Fund – Regular Plan, introduced on Sep 07, 2022, is designed to maximize investments by actively managing a diversified portfolio primarily composed of mid-cap stocks. As of Jan 12, 2024, it boasts an impressive NAV of Rs 14.64, demonstrating robust returns of 45.87% (1yr) and 32.66% (since inception). With a reasonable expense ratio of 2.05%, the fund predominantly allocates its assets to equities (97.83%). Despite its relatively higher risk profile, the fund has shown promising performance. While considering a one-year investment, it’s essential to evaluate your risks and the fund’s historical performance.

Aditya Birla Sun Life Midcap Fund

This fund is an investment option that mainly puts money in mid-sized companies. It started on October 3, 2002, and has shown good returns, like 41.48% annually in the past year. Managed by experienced professionals, the fund focuses on mid-cap stocks that can offer growth potential with less risk than smaller companies.

Kotak Corporate Bond Fund

Kotak Corporate Bond Fund is an investment opportunity focused on high-rated corporate bonds. It showcases a robust 7.96% Compound Annual Growth Rate (CAGR) since its start in 2007. Managed by experts Deepak Agrawal and Manu Sharma, the fund aims for income generation and capital appreciation through investments in corporate debt securities. While its historical performance has been consistently positive, deciding on a one-year investment plan should include thorough research.

Canara Robeco Gilt Fund

It is a debt scheme that primarily invests in government securities for stable returns. As of January 15, 2024, its Net Asset Value (NAV) is ₹67.3225. Over the years, it has shown an annualized return of 6.68%, slightly outperforming benchmark indices. It suits investors seeking stability and moderate risk over the long term. However, for a one-year plan, remember that past performance doesn’t guarantee future results. Consider aligning your investment horizon with the fund’s long-term income generation objective.

Points to View Before Investing in Mutual Funds for 1 Year

Before investing in mutual funds for a one-year horizon, consider the following points:

• Clearly understand why you’re investing for one year. Whether it’s for saving or growing money, your intent to invest should be clear to you.
• Understand how comfortable you are with risks. For one year, consider lower-risk options.
• Choose a fund that matches your one-year plan. Short-term or ultra-short-term debt funds are stable choices.
• Check how the fund did before. Consistent returns in different situations are good signs.
• Look at the fund’s cost. Lower costs are better because they affect your profits.
• Ensure the fund is easy to turn into cash if needed soon.
• Some funds are charged for leaving early. Know if this applies.
• See how well the fund manager did before. Experienced managers can make a difference.
• Consider what’s happening in the economy. It affects how some funds perform.
• Spread your investment to reduce risk. Don’t put everything in one place.
• Talk to a money expert for advice that fits your situation.