Returns are of Direct plans – Growth option.
Data as of 11th November 2021.
(Source: ACE MF, PersonalFN Research)  
This table is for illustration purpose only. Please consider your investment objective, suitability and risk profile before investing in any fund mentioned above.<\/p>\n\n\n\n

Now comes the most important part, which is deciding the allocation you need to invest your Diwali bonus in the above-mentioned list of the best equity mutual funds.<\/p>\n\n\n\n

Best Equity Mutual Funds to Invest your Diwali Bonus – Large-cap Category<\/strong><\/p>\n\n\n\n

As per SEBI categorisation, Large-cap Funds invest a minimum of 80% of their corpus in equity (stocks) and equity-related instruments of large-cap companies, defined as the top 100 companies in terms of market capitalisation. The advantage of investing in large-cap companies is that they are well-established, with reliable brand equity, competitive advantage, strong balance sheet, and economic moat.<\/p>\n\n\n\n

Due to their huge cash reserves and high product demand, large-cap companies are able to manage economic downturns much better than mid and small-cap companies. In terms of portfolio allocation, we would suggest allocating 25% to large-cap mutual funds. Advisably, one of the best large-cap mutual funds to invest your Diwali bonus is Mirae Asset Large-cap Fund<\/a>.<\/p>\n\n\n\n

Reasons why Mirae Asset Large-cap Fund is one of the Best Equity Mutual Fund to invest your Diwali bonus into:<\/strong><\/p>\n\n\n\n

• The fund has a high AUM of Rs 30,804 crores as of October 2021, which will help it keep redemption pressure, if any, at bay.<\/li>
• The fund has one of the lowest expense ratios in the large-cap category at 0.53% as of 31^{st<\/sup> October 2021.<\/li>}
• The fund has managed to generate an Alpha of 1.18% over its benchmark, Nifty 100-TRI, as of 11^{th<\/sup> November 2021, outperformed the category average, and ranks on returns in the large-cap category.<\/li><\/ul>\n\n\n\n}

  [Read More:<\/strong> Best Large Cap Mutual Funds to Invest in 2021<\/a>]<\/p>\n\n\n\n

  Best Equity Mutual Funds to Invest your Diwali Bonus – Flexi-cap Category<\/strong><\/p>\n\n\n\n

  Flexi-cap mutual funds have to invest a minimum of 65% of their assets in equity and equity-related instruments with dynamic asset allocation across large-cap, mid-cap, and small-cap stocks. Due to the flexible investment mandate to invest in equities across market capitalisations, flexi-cap funds are less risky than pure mid and small-cap funds. Nevertheless, flexi-cap funds tend to outperform pure large-cap funds. Investors can allocate around 20% of their investible corpus to Flexi-cap Funds.<\/p>\n\n\n\n

  One of the best Flexi-cap Funds to invest your Diwali bonus is Parag Parikh Flexi-cap Fund<\/a>. The fund was launched in 2013 but has managed to amass an AUM of Rs 17,219 crores as of 31^{st<\/sup> October 2021.<\/p>\n\n\n\n}

  Reasons why Parag Parikh Flexi-cap Fund is the one of Best Equity Mutual Fund to invest your Diwali bonus are as follows:<\/strong><\/p>\n\n\n\n

  • The fund has generated a 5-year return of 23.83% as of 11^{th<\/sup> November 2021, one of the best in the Flexi-cap category.<\/li>}
  • The fund has a decent expense ratio of 0.83% as of 31^{st<\/sup> October 2021.<\/li>}
  • The fund gives investors an opportunity to invest in overseas stocks like Alphabet Inc., Amazon.com Inc., etc.<\/li>
  • The fund has managed to generate an Alpha returns compared to its benchmark, Nifty 500-TRI, as of 11^{th<\/sup> November 2021, outperformed the category average by a remarkable margin, and is one of the top rankers in the Flexi-cap Fund category.<\/li><\/ul>\n\n\n\n}

    [Read More:<\/strong> Best Multi-Cap\/Flexi Cap Funds to Invest in 2021<\/a>]<\/p>\n\n\n\n

    Best Equity Mutual Funds to Invest your Diwali Bonus – Large & Mid-cap Fund Category<\/strong><\/p>\n\n\n\n

    SEBI has defined large-cap and mid-cap mutual funds as equity-oriented mutual funds that are mandated to invest a minimum of 35% of their corpus in equity and equity-related instruments of large-cap and mid-cap companies, listed as the top 250 companies in terms of market capitalisation. Large-cap and mid-cap mutual funds offer investors the best of both worlds, i.e. stability from large-cap stocks and high growth from mid-cap stocks. In terms of ideal allocation, investors can allocate up to 20% of their investible Diwali bonus to large and midcap mutual funds.<\/p>\n\n\n\n

    One of the best Large & Mid-cap Funds to invest your Diwali bonus is Canara Robeco Emerging Equities Fund<\/a>. Let us look at the reasons why this is the best large and mid-cap mutual fund to invest your Diwali bonus.<\/p>\n\n\n\n

    Reasons why Canara Robeco Emerging Equities Fund is one of the Best Equity Mutual Fund to invest your Diwali bonus are as follows:<\/strong><\/p>\n\n\n\n

    • The Fund has an impressive AUM of Rs 11,773 crores as of 31^{st<\/sup> October 2021, the second-best in the large and mid-cap category.<\/li>}
    • The fund has the lowest expense ratio in the large-cap and mid-cap category at 0.63% as of 31^{st<\/sup> October 2021.<\/li>}
    • The fund has generated a 5-year return of 21.37% as of 11^{th<\/sup> November 2021, the second-best in the large and mid-cap fund category.<\/li><\/ul>\n\n\n\n}

      [Read More:<\/strong> Best Large and Mid Cap Mutual Fund to Invest in 2021<\/a>]<\/p>\n\n\n\n

      Best Equity Mutual Funds to Invest your Diwali Bonus – Value\/Contra Fund Category<\/strong><\/p>\n\n\n\n

      Value investing is a time-tested strategy that involves identifying\/finding stocks that are trading below their intrinsic value. It is through value investing that Warren Buffett’s net worth stands at a colossal 105 Billion US Dollars as of 12^{th<\/sup> November 2021.<\/p>\n\n\n\n}

      A value fund is mandated to invest a minimum of 65% of its assets in value stocks across market capitalisation. While value funds tend to underperform during momentum-based market rallies led by growth stocks, time and again it has been proven that value stocks are the best bet during market downturns. But remember, patience and a long-term investment horizon are necessary when investing in value funds and hence you could allocate up to 10% of your investment amount to value funds.<\/p>\n\n\n\n

      One of the best Value\/Contra Fund to invest your Diwali bonus is Invesco India Contra Fund<\/a>. Let us check out the reasons why Invesco India Contra Fund<\/a> tops our list of best value\/contra funds in India.<\/p>\n\n\n\n

      Reasons why Invesco India Contra Fund is one of the Best Equity Mutual Fund to invest your Diwali bonus are as follows:<\/strong><\/p>\n\n\n\n

      • The fund has managed to garner a decent AUM of Rs 8,457 crore as of 31^{st<\/sup> October 2021.<\/li>}
      • The fund has generated a 5-year return of 20.94% as of 11^{th<\/sup> November 2021.<\/li>}
      • The fund is well diversified with 57.97% in giant-cap, 15.05% in large-cap, 17.75% in mid-cap and 9.23% in small-cap companies which gives investors taste of the entire market in one fund.<\/li><\/ul>\n\n\n\n

        [Read More:<\/strong> Best Value Fund to Invest in 2021<\/a>]<\/p>\n\n\n\n

        Best Equity Mutual Funds to Invest your Diwali Bonus – Aggressive Hybrid Fund Category<\/strong><\/p>\n\n\n\n

        Hybrid mutual funds give you a ready-made solution for portfolio diversification as you get to diversify across two major asset classes, equity and debt whilst investing in a single fund. As per SEBI, aggressive hybrid mutual funds invest between 65%-80% of their corpus in equities and the balance 20%-35% in debt instruments. Investors can invest up to 15% of their Diwali bonus and cash gifts in aggressive hybrid funds.<\/p>\n\n\n\n

        One of the best Aggressive Hybrid funds to park your Diwali bonus into is SBI Equity Hybrid Fund<\/a>. Let us look at the reasons that make SBI Equity Hybrid Fund<\/a> is one of the best equity funds worthy of your Diwali bonus.<\/p>\n\n\n\n

        Reasons why SBI Equity Hybrid Fund is one of the Best Equity Mutual Fund to invest your Diwali bonus are as follows:<\/strong><\/p>\n\n\n\n

        • SBI Equity Hybrid Fund is the biggest aggressive hybrid fund in India with an AUM of Rs 48,043 crores as of 31^{st<\/sup> October 2021.<\/li>}
        • The fund has the lowest expense ratio of 0.90% as of 31^{st<\/sup> October 2021 in the aggressive hybrid fund category.<\/li>}
        • The fund has managed to generate an Alpha of 2.63% over its benchmark, CRISIL Hybrid 35+65 Aggressive Index as of 11^{th<\/sup> November 2021, outperformed the category average returns and is amongst the top rankers in this category.<\/li><\/ul>\n\n\n\n}

          [Read More:<\/strong> Best Aggressive Hybrid Mutual Funds to Invest in 2021<\/a>]<\/p>\n\n\n\n

          Best Equity Mutual Funds to Invest your Diwali Bonus – Mid-cap Fund Category<\/strong><\/p>\n\n\n\n

          Compared to the other categories, this is by far the riskiest one on our list of best equity mutual funds to invest your Diwali bonus into. Mid-cap mutual funds have the mandate to invest a minimum of 65% of their assets in equity and equity-related instruments of mid-cap companies, ranked from 101st to 250^{th<\/sup> in terms of market capitalisation.<\/p>\n\n\n\n}

          Since these stocks belong to relatively newer companies, they are less resilient during market downturns but do generate superior returns in a bull market phase as the stocks of the underlying companies are yet to enter their growth spurt. This is why we would recommend maintaining your overall exposure to mid-cap mutual funds at 10%. One of the best mid-cap funds to invest your Diwali bonus into is Axis Midcap Fund<\/a>.<\/p>\n\n\n\n

          Reasons why Axis Midcap Fund is one the Best Equity Mutual Fund to invest your Diwali bonus<\/strong><\/p>\n\n\n\n

          • Axis Midcap Fund has the highest AUM of Rs 15,987 crore as of 31^{st<\/sup> October 2021. This keeps the redemption pressure away.<\/li>}
          • The fund has generated an Alpha of 7.94% of 31^{st<\/sup> October 2021 over the benchmark index S&P BSE Midcap-TRI.<\/li><\/ul>\n\n\n\n}

            [Must Read:<\/strong> Complete List of Best Midcap Mutual Funds in 2021<\/a>]<\/p>\n\n\n\n

            If you sensibly follow the ‘Core & Satellite Investment Strategy, here are six key benefits it adduces:<\/p>\n\n\n\n

            1. Facilitates optimal diversification among equity mutual fund schemes<\/li>
            2. Reduces the need to frequently churn your entire portfolio<\/li>
            3. Reduces the risk to your portfolio<\/li>
            4. Enables you to benefit from a variety of investment styles and strategies<\/li>
            5. Creates wealth cushioning the downside<\/li>
            6. Helps you potentially outperform the market<\/li><\/ol>\n\n\n\n

               Considering the present market conditions, take the Systematic Investment Plan (SIP)<\/a> route while you build the portfolio of the best equity-oriented mutual fund schemes following the ‘Core and Satellite’ approach.<\/p>\n\n\n\n

               Now while we have revealed the list of best equity mutual funds to park your Diwali bonus into and also given you the recommended allocation, you are far from done. It is important to monitor and review this portfolio on a regular basis to ensure that your hard-earned money is always invested in the best equity mutual fund.<\/p>\n\n\n\n

               How do you do this? Simply subscribe to PersonalFN’s premium research service, FundSelect.<\/a><\/p>\n\n\n\n

               Disclaimer:<\/em><\/strong>\u00a0This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy \/ Hold \/ Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant\/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.<\/em><\/p>\n\n\n\n

               This article first appeared on PersonalFN here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

               In India, Diwali marks the beginning of a new year for Hindu communities. It is a time for celebration and jubilation with the Diwali bonus and cash gifts being the cherry on the cake. Recall the sheer joy you experience when you get a little notification on your phone saying ‘Diwali Bonus Received’. Even though…<\/p>\n","protected":false},"author":3,"featured_media":3764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3763"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=3763"}],"version-history":[{"count":4,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3763\/revisions"}],"predecessor-version":[{"id":3769,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3763\/revisions\/3769"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/3764"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=3763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=3763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=3763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}