Best Mutual Funds for Aggressive Investors

When it comes to investing in mutual funds, a lot depends on how much risk you can afford. It’s due to the fact that these investments are subject to market risks. People can come under different categories of risk profile - high, low and mid. Those falling in the second category find it hard to deal with the market fluctuations. People falling in the third category of investors can deal with some risks. However, the first one belongs to a group of investors who can take big risks and are thus called as aggressive investors in the mutual fund space. These investors won’t be happy with safe returns or getting back the invested capital  Their thirst for money can be massive. And so, they must pick mutual funds that must have made the investor pockets heavy with time. So, they should invest in the best mutual funds according to their investment taste.

Where Should Aggressive Investors Put Their Money?

They should invest heavily in equity funds that have the high-return power of stocks to elevate the level of investments over time. These funds allocate the assets firmly in equities and equity derivatives to make most of their high-return capabilities. Equity funds are broadly categorized into the following -

• Large-cap Funds
• Multi-cap Funds
• Mid-cap Funds
• Small-cap Funds

Large-cap Funds - These funds invest predominantly in the stocks of top 100 companies on the basis of market capitalization. The money is invested in companies with strong business fundamentals.

Multi-cap Funds - One of the diversified equity mutual funds, multi-cap funds invest in different stocks with different market capitalizations. As the money is invested across different instruments, the risk diversification is greatly ensured.

Mid-cap Funds - The money invested in these funds goes into stocks of top 101-250 companies based on the market capitalization. The money usually goes into the stocks of mid-sized firms. These funds tend to do well when the market goes through a bull run.

Small-cap Funds - These funds invest mainly in stocks of companies that come after the top 250 firms according to the market capitalization.  

Of the type of equity funds mentioned, it’s the mid-cap and small-cap funds that would suit mostly the aggressive investors. So, you must choose the best mid-cap and small-cap mutual funds.

Best Mid-cap Funds You Should Choose

You can choose from the following two mid-cap funds

• SBI Magnum Mid-cap Fund
• DSP Mid-cap Fund
• HDFC Mid-cap Opportunities Fund

SBI Magnum Mid-cap Fund

The fund invests the money with a view to make it appreciate at a faster pace. The fund has offered SIP returns of 13.74% over a period of 10 years.

DSP Mid-cap Fund

The fund invests in a portfolio of equity and equity-related securities to maximize the growth of the capital. It has offered a return 15.13% to those investing in this fund via a Systematic Investment Plan (SIP).

HDFC Mid-cap Opportunities Fund

You can get the invested capital bigger over time by putting the money in this fund that would invest the assets predominantly in a set of equity and equity-related securities. The 10-year SIP return of the fund is 16.32%.

Best Small-cap Funds You Should Pick

You can invest in any of these small-cap funds -

Reliance Small Cap Fund

The money you invest here is distributed across the portfolio of a portfolio of equities of small-cap companies. As of record, the fund has generated returns of 13.66% in a 3-year period.

DSP Small Cap Fund

The money invested in this fund is distributed into stocks of small-cap companies. It has generated a 10-year SIP return of 16.78%.