Top Performing Mutual Funds of
- Tax Saving
Types of Mutual Funds
Based on Asset classes
- Equity Funds: These funds primarily invest in stocks and can be actively or passively managed. The highs and lows are determined by the performance of the market. While they offer potentially high returns, they also come with relatively higher risks.
- Debt Funds: These funds invest in fixed-income securities, including bonds, securities, and treasury bills, among others - these have a fixed interest rate and maturity period. These offer regular income and growth. The growth might not be at par with equity funds, but there's a steady income flow.
- Hybrid Funds: These invest in a mix of bonds and stocks and offer the best of both worlds - equity and debt. The ratio can differ; it can be variable or fixed. This works well for investors who want to earn good returns but also want a safety net (that the debt component provides).
Based on structure
Here's a look at the mutual funds:
- Open-Ended Funds: These funds can issue an unlimited number of units to the investor. Also, there's no restriction on the time period - an investor can thus invest based on their convenience and exit when they like the current NAV.
- Closed-Ended Funds: The unit capital of closed-ended funds is fixed, and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over. These funds have a certain maturity tenure. Like any other mutual fund, a closed-ended fund has a professional manager overseeing the portfolio and actively buying and selling holding assets.
- Interval Funds: These funds take in traits of both open-ended and closed-ended funds. They can only be exited at certain intervals decided by the fund house; they remain closed for the remaining period. No transactions are allowed for a fixed period of time - your money is not locked-in for longer periods unlike in the case of closed-ended funds.
Specialised Mutual Funds
- Sector Funds: These invest in one particular sector. The risk is highest since these funds invest only in specific sectors, but they also potentially deliver great returns. In this case, it is important to stay aware of sector-related trends.
- Funds of Funds: A Fund of funds is a type of mutual fund which invests in other mutual funds or investment avenues. It is basically an investment strategy that pools in money and invests in other investment funds instead of investing directly in stocks or bonds or other assets.
How Portfolio is managed
- Actively managed funds: An actively managed fund is a fund in which a fund manager takes decisions on which stock to buy, when to buy it and when to sell it. The aim here is to deliver market-beating returns.
- Passively managed funds: A passively managed fund, by contrast, simply follows a market index to decide which stocks and their corresponding ratio it should have in its portfolio. There is no regular buying and selling happens and changes in the portfolio are done only when there are changes in the index.
Advantage of Mutual Funds
Here's why investing in mutual funds is a good idea:
Except for the case when you decide to go for close-ended mutual funds, it is easy and hassle-free to buy and exit a mutual fund scheme. Close-ended funds issue a fixed number of units - this means that new investors cannot enter, nor can the existing investors exit until the term of the scheme ends.
In the case of ELSS Mutual Funds, although they are open-ended funds, they have a lock-in period of three years.
Mutual funds do come with their set of risks since they are impacted by the performance of the market. Funds invest in asset classes - be it equity, debt, and others and, within asset classes in different sectors and company sizes.
For instance, equities will buy stocks from different sectors. If one asset class does not perform well, the other can help with better returns, so that the investor faces minimum loss.
This is another reason why mutual funds are preferred - it does not require investors to do any research - it is the fund manager who takes care of it and makes decisions on what needs to be done with your investment. He also decides on whether you should hold certain stocks or not, and for how long.
This makes it critical to have an experienced fund manager, and one of the biggest prerequisites before you zero in a mutual fund house.
Fits all financial goals
There are multiple mutual fund schemes available today that cater to specific life goals, such as children's education or marriage, retirement, or buying a house. To begin with, you must identify the time frame of your goals.
For instance, you want to save up for a vacation in the next year or buy a gadget, these are considered short-term goals. To achieve these goals, you can invest in Liquid Funds or Ultra Short Term Funds read more
Mid-term goals are those that you plan to achieve in the next three-four years. This could be a down payment to buy a house or a car, planning a business, or similar reasons. For these goals, a Balanced Fund is highly preferred. One can also come for a Monthly Income Plan in this case.
Coming to long-term goals, these are ones that you think will take longer to achieve, say over 5 years. Whether it's saving for your children's future or your retirement, the planning must be systematic and organized. For these goals, Equity Mutual Funds are good, since they offer higher returns but also come with high risk. You could choose from Large-cap/Mid-cap/Small-Cap Funds, ELSS, or Multi-Cap Funds. Read less
An investor also has the option to go for mutual funds that have low expense ratios. You can check the expense ratios of a range of mutual funds and then decide on the one that fulfills your financial goals.
The expense ratio is the fee that is charged by the mutual fund house to manage your funds.
Mutual Fund returns are more tax-efficient compared to traditional investment avenues like FDs. In Equity Mutual Funds, you pay 15% tax on returns if you invest for less than a year.
For a holding period of more than 1 year, you pay tax only if your returns exceed 1 lakh in a financial year. Even then the tax rate is 10% and you pay it on the amount in excess of 1 lakh.
How to Invest in a Mutual Fund?
Investing in a Mutual Fund is extremely easy with ETMONEY.
For first-time investors
For first-time investors, KYC is a prerequisite for investing in Mutual Funds. On ETMONEY, the entire KYC process is completely paperless and takes only a few minutes
For existing Mutual Fund investors
For existing Mutual Fund investors, it is equally easy to begin investing. They just need to enter a few details and they can start investing
Direct Mutual Funds
On ETMONEY, you invest in commission-free Direct Mutual Funds, which help you earn extra returns by saving on commissions.
Frequently asked questions
Mutual fund investments are subject to market risks. Read all scheme related documents carefully.
SEBI Reg. No. INA | ARN -
Top 10 mutual funds to invest
For example, try an online search. Mostly it would take you to some websites with ready-made lists. Most often, the schemes may be shortlisted on the basis of their short-term performance. Sometimes, schemes from a single category may dominate the list because that happens to be the flavor of the season. Some may follow a faulty methodology.
Some people never proceed beyond collecting names of top funds because looking for the top funds becomes their favourite pass time. A lingering doubt about the veracity of the names always hold them back. No wonder, many investors keep visiting mutual fund forums for validation even years after after they had started investing.
That is why ETMutualFunds.comdecided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different equity and hybrid mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for you.
Here is the list of top 10 schemes:
- Axis Bluechip Fund
- Mirae Asset Large Cap Fund
- Parag Parikh Long Term Equity Fund
- Kotak Standard Multicap Fund
- Axis Midcap Fund
- DSP Midcap Fund
- Axis Small Cap Fund
- SBI Small Cap Fund
- SBI Equity Hybrid Fund
- Mirae Asset Hybrid Equity Fund
Here are some pointers you should keep in mind while investing these schemes. First, find out about each category and whether it is suited to your investment objective and risk profile.
Aggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (%) and debt (). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes that invest the entire corpus only in stocks. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors investors looking to create long-term wealth without much volatility.
Note, ICICI Prudential Equity Debt Fund has been performing poorly for a while - the scheme was in the last quartile during the last month. It was in the third quartile before that. We are watching it closely, as it is apart of our aggressive hybrid fund recommendation list. We will update about it every month.
Some equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability.
A regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond multi cap mutual funds or diversified equity schemes. These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes.
What about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk.
Looking for mutual fund SIP portfolios to start investing to create wealth over a long period? Here are our recommended mutual fund SIP portfolios for three different risk profiles - conservative, moderate, aggressive - and three different basket of SIP investments. For more, read: Best mutual fund SIP portfolios to invest in
Finally, any search starting with the word 'best' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile.
If you do not understand these basic concepts or totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor.
Note, some of these schemes in the recommended list may be underperforming for a while. They are also part of our recommendations in their respective categories. We are tracking these schemes closely and we update about their performance every month as part of our monthly updates.
If you want to look at recommendations in each category in detail, here are some useful links:
Best large cap mutual funds
Best large & mid cap funds
Best mid cap funds
Best small cap funds
Best tax saving or ELSS funds
( Originally published on May 24, )
ETPrime stories of the day
- Walmart weight set
- Free trap beats
- Craigslist in spanish version
- Harsh and cruel jacket
- 240 weatherby magnum review
Best balanced advantage funds or dynamic asset allocation funds to invest in
Balanced Advantage Funds or Dynamic Asset Allocation funds are a newly formed category of hybrid mutual funds, which are free to manage their exposure to equity and debt according to market conditions.
Why are mutual fund managers upbeat about balanced advantage schemes?
Don’t rule out a near term correction or consolidation: Meeta Shetty of Tata Digital India Fund
New SIP accounts hit another high in September, help keep the rally going
What is a regular IDCW scheme?
Benchmark yields surge as RBI talks normalisation
Sell your investments in these 12 equity MFs now
Best aggressive hybrid mutual funds to invest in
Analyse these 5 factors before starting an SIP
Best conservative hybrid mutual funds to invest in
Silver FoFs vs Silver ETFs: Where to invest?
How investors should play the commodity theme
Rebalance now to avoid investing regrets
Fund review: A worthy pick in flexi cap MF category
Equity mutual fund inflows flat in September; debt MFs see massive outflows
BSE StAR MF logs net equity inflow of Rs 6, crore in September
RBI holds policy rates again. What should be your debt mutual fund strategy?
Top debt mutual fund managers react to the RBI's status quo on policy rates
Mutual Funds: Corporate bond funds | Large cap mutual funds | Best Mutual Funds in India | Best tax saving funds | Mid cap funds | SBI Mutual Fund | NPS | Large & mid cap funds | Top Mutual Fund Schemes | Best ELSS Funds to Invest
More from FII Activity »
Mutual Funds Activity
More From Mutual Funds Activity »
Mutual Funds Research Tool
Sandra. Picked up the phone, her friend Tamara called.Sandra, what are you doing.
50 funds top mutual
I got myself together and asked why are you sleeping with a man. Dad could not say anything right away, he was silent for a long time. He looked clearly confused. I wanted to deny it, says what are you talking about.Best Index Mutual Funds for 2021 - Top Mutual Funds in India 2021
And raising his hands to Heaven, he said to God himself: - My way, the way of the rejected, and the damned. But, the path of true freedom. At the crossroads of four roads, Cerberus appeared when, on the concrete, cracked with time and chipped by the wheels, the crossed road flashed. Illuminating the sleeping houses of the village with the light of the headlights of a passenger car.
- Daily intelligencer newspaper obituaries
- Carpenter sample resume
- Amc statesboro ga
- Target blackout curtains
- Moen shower valve models
- Wiley cash wikipedia
- Samsung odyssey plus fov
- Synonyms of enemies
- Cedar creek rv prices
- Chattanooga tn gas prices
- Mercedes benz alternator
- Monologues for women comedic
- Monster legends wiki
I would like to do the enema with a pear, because the process stretches and pleasant sensations intensify. I tried to explain to my wife the wonderful sensations of setting an enema, and asked me to do an enema, offered to. Give an enema to her, but in the end, wide-open eyes, complete misunderstanding and type, you are an uncle, you are going to the right roof.
Sometimes I tried to imitate constipation and turned to my wife with a request to give an enema. Of course, she did an enema for me, but with a feeling, okay, I'll do where you go from you, stuck the tip and be healthy.