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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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.

Financial services company, IIFL, has shortlisted the top five mutual funds in their monthly mutual fund report.

ICICI Prudential Equity and Debt Fund: According to the July numbers, the fund invested approximately 67 percent of asset under management in equity to give steady growth over the long term while approximately 27 percent was allocated to the debt investments, indicating that there is balance in the investments and is recommended for long-term wealth.The fund has given a 9.7 percent return in a year, 13.4 percent return in three years and 20.2 percent return in five years. The fund returns are as of August 30, 2018.

SBI BlueChip Fund: The equity fund primarily invests in the top 100 stocks by market capitalisation. As of July, the fund invested approximately 80 percent asset under management in large-cap stocks and approximately 10 percent in small-cap stocks to attain steady growth in the long term. The report recommends this fund who are looking to invest in diversified funds for long-term wealth.The fund has given a 9.7 percent return in a year, 12.7 percent in three years and 21.6 percent return in five years. The fund returns are as of August 30, 2018.

Axis Focused 25 Fund: The fund's strategy is to invest in 25 stocks from the 200 stocks in companies with credible management, sustainable profit growth and with a clean balance sheet. For those who are interested in investing in high conviction large-cap and small-cap stocks, this fund will help in creating long term wealth, IIFL said.

The fund has given a 22.7 percent in a year, 19.3 percent in three years and 22.8 percent in five years. The fund returns are as of August 30, 2018.

Tata Equity P/E Fund: As per the July numbers, the fund invested approximately 70 percent of the asset under management in large-cap stocks and nearly 26 percent in mid-cap and small-cap stocks to generate higher returns over the long term. IIFL recommends this fund to those who are value conscious.

The fund has given an 11.5 percent in a year, 19.5 percent in three years and 28.6 percent in five years. The fund returns are as of August 30, 2018.

DSP Midcap Fund-Reg: The fund invests in stocks beyond the top 100 companies and follows a bottom-up approach to select and invest in stocks with consistent earnings. The fund primarily invests in mid-cap and small-cap stocks. As of July, nearly 61 percent was invested in mid-cap stocks, 28 percent in small-cap and approximately 8 percent in large-cap stocks.The fund has given a 9.7 percent in a year, 15.5 percent in three years and 30.4 percent in five years. The fund returns are as of August 30, 2018.

Also, read ICICI Securities recommendations on mutual funds.