Introduction:
Mutual fund investors in 2024 witnessed diverse opportunities as various categories delivered outstanding performance. Equity funds capitalised on market rallies, debt funds provided stability, and hybrid funds offered balanced growth. Let’s explore their remarkable journey.
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| Mutual Fund Category | Returns (1 Yr) |
| Equity: Mid Cap Equity Mutual Funds | 33.3% |
| Equity: Equity Contra Funds | 30.8% |
| Equity: ELSS Mutual Funds | 25.7% |
Mid Cap Equity Mutual Funds:
Mid Cap Funds invest in stocks ranked between 100 and 250 by market capitalisation. These stocks offer a balance of stability and growth potential, sitting between large and small-cap stocks. Larger stocks are less risky, while smaller ones provide higher growth opportunities.
Mid Cap Equity Mutual Funds outshined in 2024, delivering an impressive 33.3% return in just one year. These funds captured the growth potential of mid-sized companies. It is ideal for investors seeking higher returns with moderate risk.
These funds suit investors with a 3-4 year horizon, seeking high returns with moderate risk. They are ideal for those willing to accept short-term volatility for potential long-term gains. Preparedness for moderate losses is essential.
Equity Contra Funds
Contra Funds invest in stocks that go against prevailing market sentiment, focusing on undervalued opportunities. This strategy assumes herd behaviour often misprices assets, making markets overly costly or cheap. The goal is to uncover hidden growth potential.
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Equity Contra Funds achieved a remarkable 30.8% return in 2024 by leveraging a contrarian investment strategy. These funds identified undervalued stocks overlooked by mainstream investors. Their approach capitalised on market inefficiencies, delivering strong performance.
These funds suit investors with advanced knowledge of macro trends and selective investing. They aim for higher returns but carry moderate to high risk. Investors must be prepared for losses even when markets are performing well.
ELSS Mutual Funds
ELSS Mutual Funds focuses on equity investments while offering tax deductions under Section 80C. They come with a mandatory lock-in period of three years from the purchase date. This combination makes them attractive for long-term, tax-saving investments.
ELSS Mutual Funds delivered a solid 25.7% return in 2024, combining growth and tax-saving benefits. These funds primarily invest in equities, offering the potential for high returns. Their performance highlights their dual advantage of wealth creation and tax efficiency.
These funds are ideal for investors looking to invest for at least three years while saving on income tax. They suit individuals expecting higher returns but ready for moderate risks. The 3-year lock-in ensures disciplined, long-term investing.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
