Top mutual funds to consider for Diwali include the Kotak Multicap Fund with an impressive 3-year CAGR of 25.25% and AUM of ₹15,420.68 crore and the Canara Rob Small Cap Fund with a 23.31% CAGR, supporting small-cap growth.
The ICICI Pru Asset Allocator Fund provides a stable 14.16% CAGR with flexi-cap versatility. Other options include UTI Nifty 50 Index Fund and HDFC Index Fund-NIFTY 50 Plan, each offering approximately 11.5% CAGR, reflecting consistent returns in index fund investments.
The table below shows the mutual fund investments during Diwali based on AUM and CAGR of 3 years.
| Name | Sub Category | AUM ( Rs ) | NAV ( Rs ) | CAGR 3Y % |
| ICICI Pru Asset Allocator Fund | Flexi Cap Fund | 23263.17 | 124.09 | 14.16 |
| UTI Nifty 50 Index Fund | Index Fund | 20432.09 | 168.51 | 11.49 |
| HDFC Index Fund-NIFTY 50 Plan | Index Fund | 18914.92 | 234.50 | 11.45 |
| Invesco India Arbitrage Fund | Arbitrage Fund | 17361.72 | 32.80 | 7.20 |
| Kotak Multicap Fund | Multi Cap Fund | 15420.68 | 19.60 | 25.25 |
| Edelweiss Balanced Advantage Fund | Dynamic Asset Allocation Fund | 12689.91 | 56.13 | 12.56 |
| Canara Rob Small Cap Fund | Small Cap Fund | 12590.85 | 43.82 | 23.31 |
| Tata Digital India Fund | Sectoral Fund – Technology | 12052.06 | 59.78 | 12.76 |
| PGIM India Midcap Opp Fund | Mid Cap Fund | 11700.09 | 72.08 | 14.92 |
Content:
What is a Mutual Fund In India?
A mutual fund in India is a financial vehicle that pools money from multiple investors to invest in various securities like stocks, bonds and money market instruments. Managed by professional fund managers, mutual funds offer diversification and risk management, making them a popular choice for retail investors.
Each investor owns units, representing a portion of the holdings in the fund. Regulated by the Securities and Exchange Board of India (SEBI), mutual funds cater to different investment goals, including growth, income and capital preservation.
Why Choose Mutual Funds This Diwali?
Choosing mutual funds this Diwali can be a smart financial decision, aligning with the festive spirit of new beginnings and wealth creation. Mutual funds offer diversified investment options, managed by professionals, which helps balance risk and potential returns.
With various funds tailored to different goals, like equity funds for growth or debt funds for stability, investors can find options suited to their needs. Many asset management companies also launch special schemes or offer incentives during Diwali, making it a good time to start investing. Plus, mutual funds offer flexibility, liquidity and tax benefits, enhancing long-term financial growth.
How To Invest In Mutual Funds This Diwali?
Investing in mutual funds this Diwali is simple and convenient with Alice Blue’s “Rise” platform, designed to help you grow wealth efficiently. Here’s how to get started:
- Set Investment Goals: Define your financial objectives (e.g., growth, income, or tax savings) to choose the appropriate mutual fund.
- Complete KYC: Register with KYC (Know Your Customer) by submitting ID proof, address proof and other required documents.
- Select a Mutual Fund on Rise: Explore funds available on Alice Blue Rise that align with your goals and risk profile.
- Choose Investment Mode: Opt for either a lump sum or a systematic investment plan (SIP).
- Start Investing with Rise: Use Alice Blue Rise to initiate and monitor your investments seamlessly.
Read more about Top Sectors to Consider for Diwali 2024
Best Mutual Funds To Invest During Diwali
The table below shows the best mutual fund to invest in during Diwali based on expense ratio and one-year return.
| Name | AUM( Rs ) | NAV( Rs ) | Expense Ratio | Absolute Returns – 1Y % |
| Kotak Multicap Fund | 15420.68 | 19.60 | 0.38 | 48.37 |
| Canara Rob Small Cap Fund | 12590.85 | 43.82 | 0.44 | 39.69 |
| PGIM India Midcap Opp Fund | 11700.09 | 72.08 | 0.45 | 34.70 |
| ICICI Pru Asset Allocator Fund | 23263.17 | 124.09 | 0.08 | 22.77 |
| Tata Digital India Fund | 12052.06 | 59.78 | 0.35 | 48.21 |
| Edelweiss Balanced Advantage Fund | 12689.91 | 56.13 | 0.46 | 26.59 |
| UTI Nifty 50 Index Fund | 20432.09 | 168.51 | 0.19 | 27.69 |
| HDFC Index Fund-NIFTY 50 Plan | 18914.92 | 234.50 | 0.20 | 27.64 |
| Invesco India Arbitrage Fund | 17361.72 | 32.80 | 0.39 | 8.20 |
Mutual Fund Investments During Diwali – Quick Summary
- Diwali is a favoured time for investing in mutual funds in India, reflecting the festival’s themes of prosperity and new beginnings.
- Mutual funds pool investor money into a diversified portfolio of securities managed by professionals.
- Diwali is ideal for starting new financial ventures, with options that balance risk and return.
- Set financial goals, complete KYC, choose a fund on platforms like Alice Blue Rise, select an investment mode and start.
Looking for smart investments this Diwali? Discover the Best Muhurat Trading stocks for 2024 and illuminate your path to wealth!
Top Mutual Funds To Invest During Diwali – FAQs
Buying top mutual funds this Diwali is straightforward. First, set your investment goals (growth, income, or tax-saving). Complete your KYC process, then use a trusted platform like Alice Blue’s Rise to explore top-rated funds suited to your risk profile. Choose between lump sum or SIP, invest and monitor your portfolio regularly to maximize growth.
Muhurat Trading in 2024 is a special one-hour trading session conducted by Indian stock exchanges on Diwali, symbolizing an auspicious start for the financial year. Scheduled during the evening, it aligns with “Lakshmi Puja” a time believed to bring prosperity. Investors participate to mark the occasion, with hopes for wealth and success in their portfolios for the coming year.
During Diwali, consider investing in equity mutual funds for long-term growth, ideal for those with a higher risk appetite. For conservative investors, balanced or hybrid funds offer a mix of equity and debt for stability. Tax-saving ELSS funds are also popular, providing both growth and tax benefits. Choose funds aligned with your financial goals and risk tolerance for optimal returns.
Investing via SIP (Systematic Investment Plan) or lump sum during Diwali depends on your financial situation and market outlook. SIPs offer gradual, disciplined investments, reducing risk from market volatility, ideal for regular income earners. Lump sum investments suit those with a sizeable amount ready, potentially maximizing gains if markets are favourable. Choose based on your budget and risk preference.
No, Diwali and Dhanteras are distinct but related festivals. Dhanteras marks the first day of Diwali celebrations and is dedicated to prosperity and health. People often buy gold, silver, or valuable items on Dhanteras as it’s considered auspicious. Diwali, celebrated a few days after, is the main festival of lights, symbolizing the victory of good over evil.
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.
