Mutual funds have been a popular investment route, as they mix the benefits of the returns from either a fixed or a recurring deposit in a bank and the gains achieved by the particular set of funds in the stock market.

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Mutual funds help investors choose from a variety of fund packages. The investors can pool in the funds through two routes - systematic investment planning (SIP) or systematic withdrawal planning (SWP).

SIP is when the fund house will deduct a set amount every month and invest it in the chosen mutual funds package.

SWP, however, is taken up by more investors who wish to set up their retirement plan as it is a fixed periodical redemption of a mutual fund scheme.

The fund house will sell the mutual fund units, and credit the money back into the bank account of the investor.

If the investor wants to transfer its funds from one mutual fund package to the other, he or she can opt for the systematic transfer investment (STP).

The investment in mutual funds are rising as time goes by. The industry's asset base rose by 0.8 percent, approximately Rs 23.05 lakh crore, largely driven by the strong stock market performance.

A report by ICICI Securities found that the State Bank of India has the highest proportion of equity asset under management (AUM) in percentage of its asset base, that is 51 percent.

Along with SBI, these top companies have shown a stellar performance in equity mutual funds last month.

Franklin

HDFC

Axis

DSP Mutual Fund

ICICI Prudential

UTI

Reliance

Kotak

Aditya Birla

The data indicates that investors can benefit by investing in mutual funds in these companies. Not only this, the companies listed above have shown a robust performance in mutual funds debt-equity investments for the month of July.

Aditya Birla tops the list. Here are the others, from high to low proportion of the asset base in debt-equity investments.

Kotak

DSP Mutual Fund

Reliance

UTI

Axis

ICICI Prudential

HDFC

Frankiln

SBI

For investors, who are looking to invest in equity mutual funds, technology funds have remained the best performing category in sector funds in the year. Along with information technology (IT), the fast-moving consumer goods (FMCG) sector has also shown a robust performance. The pharma funds, however, continue to stage a recovery.

For those interested in investing in market-cap funds, the largecap funds are recommended as they outperformed the midcap and multicap funds in a year.

"After a strong run from mid-2013 to 2016 for midcaps and small caps, large caps had a good calendar year 2017 and continued their relative dominance on a year-to-date (YTD) basis as well," the ICICI Securities report said.

Here are the mutual fund packages ICICI Securities recommends for investors:

For investing in largecap funds:

Reliance Large Cap Fund

ICICI Prudential Bluechip Equity Fund

SBI Bluechip Fund

For investing in multicap funds:

Mirae Asset India Equity Fund

Kotak Standard Multicap Fund

HDFC Equity Fund

For investing in midcap funds:

HDFC Mid-Cap Opportunities Fund

Kotak Emerging Equity Fund

L&T Emerging Businesses Fund

For investing in smallcap funds:

HDFC Small Cap Fund

L&T Emerging Businesses Fund

Reliance Small Cap Fund

For investing in equity infrastructure funds:

L&T Infrastructure Fund

Reliance Diversified Power Sector Fund

For investing in equity banking funds

ICICI Prudential Banking & Financial Services

Reliance Banking Fund

UTI Banking Sector Fund

For investing in equity technology funds

ICICI Prudential Technology Fund

For investing in equity pharma funds

Reliance Pharma Fund

UTI Healthcare Fund

For investing in equity FMCG funds

SBI Consumption Opportunities Fund

ICICI Prudential FMCG Fund

First Published:Aug 22, 2018 1:31 PM IST