Mutual Funds are professionally managed investment schemes. They represent a pool of funds that are professionally managed by expert Mutual Fund managers. The fund managers keep a record of the performance and growth of these funds and make required alterations so that the funds perform well and the investors receive the best possible returns.
Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities. When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme. You can purchase or even redeem a Mutual Fund at the prevailing Net Asset Value (NAV).
Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities. When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme. You can purchase or even redeem a Mutual Fund at the prevailing Net Asset Value (NAV).
Different types of Mutual Funds:
- Debt funds: A debt fund is a type of Mutual Fund that invests in fixed-income securities. Under this fund, your money will be invested in short-term bonds, long-term bonds, securitised funds, floating rate debt, and money market instruments.
- Equity funds: An equity fund is a type of Mutual Fund that invests money primarily in stocks. There are both actively or passively managed funds.
- Equity linked savings schemes: This is an equity Mutual Fund that is close-funded in nature. It helps you save taxes and also helps you grow your wealth. You can enjoy tax deductions as per the Income Tax Act under Section 80C.
- Diversified funds: This type of Mutual Fund allows you to invest your money in diverse sectors or industries. You can spread your investments across various industries in the market.
- Gilt funds: These funds allocate money to securities that are offered by the state and central governments. These funds come without any default risk.
- Index funds: Under this category of Mutual Funds, your money will be invested according to how a stock market index functions. The NAV for these funds will be closely follow the rise or fall in the index.
- Liquid Mutual Funds: Liquid Mutual Funds are investment plans that will allocate funds primarily to money market instruments such as treasury bills, term deposits, certificate of deposits, commercial papers, etc. These funds come with a lower maturity period.
- Debt-oriented hybrid funds: Under this category of Mutual Funds, your money will be primarily invested in debt and the remaining part will be invested in equity. It is a blend of both debt and equity investment.
- Arbitrage funds: These funds are treated as equity plans for taxation purposes. These funds invest both in the cash market and the derivatives market.
- Dynamic bond funds: Your money will be invested in debt and money-market instruments. The maturity of the fund will vary according to the investments that it makes.
The number of Mutual Funds made available to the general public has increased significantly over the past few years. As a result, you now have an impressive number of options to choose from, and regardless of which category you wish to invest in, following are the top 10 Mutual Funds in various categories, as rated by CRISIL.
Top 10 Large Cap-oriented Equity Funds
- Mirae Asset India Opportunities Direct-G
- Motilal Oswal MOSt Focused 25 Direct-G
- Aditya Birla SL Top 100 Direct-G
- Kotak Classic Equity - Direct (G)
- Aditya Birla SL Top 100-G
- SBI Blue Chip Fund - Direct (G)
- Invesco India Dynamic Equity Fund(G)
- Franklin India Bluechip Fund(D)
- ICICI Pru Focused Bluechip Equity Direct-G
- Aditya Birla SL Frontline Equity Fund(D)
Top 10 Diversified Equity Funds
- DSPBR Opportunities Fund-Reg(G)
- ICICI Pru Multicap Fund(D)
- Kotak Opportunities Fund(G)
- SBI Magnum Multicap Fund-Reg(D)
- BNP Paribas Dividend Yield -Dir (G)
- Aditya Birla SL Advantage Fund(D)
- HDFC Capital Builder Fund(G)
- Franklin India Prima Plus Fund(D)
- DSPBR Opportunities Fund-Reg(D)
- Tata Equity Opportunities Fund(D)
Top 10 Thematic – Infrastructure Funds
- IDFC Infrastructure - Direct (G)
- L&T Infrastructure -Direct (G)
- DSP-BR India TIGER - Direct (G)
- Franklin Build India - Direct (G)
- Kotak Infra and Eco Reform Standard-G
- Can Robeco Infrastructure
- Sundaram Infrastructure Adv -DP (G)
- ICICI Pru Infrastructure (G)
- Kotak Infra and Eco Reform Direct-G
- L&T Infrastructure-G
Top 10 Consistent Performers – Equity Funds
- Birla Sun Life India GenNext Fund
- DSP BlackRock Micro Cap Fund
- IDBI India Top 100 Equity Fund
- DSP BlackRock Micro Cap Fund
- Mirae Asset India Opportunities Direct-G
- SBI Blue Chip Fund
- Franklin India Flexi Cap Fund
- Motilal Oswal MOSt Focused 25 Fund - Regular Plan
- Quantum Long Term Equity – Regular Plan
- BNP Paribas Dividend Yield Fund
Top 10 Equity Linked Savings Schemes
- L&T Tax Advantage -Direct (G)
- IDFC Tax Advantage (ELSS)-RP (G)
- Tata India Tax Savings Fund - Direct (G)
- Aditya Birla SL Tax Plan(G)
- Franklin (I) Tax Shield -Direct (G)
- Principal Tax Savings Fund
- Invesco India Tax Plan - DP (G)
- Axis Long Term Equity Fund (G)
- Sundaram Diversified Equity(G)
- Aditya Birla SL Tax Relief '96(G)
Top 10 Multi-Cap Mutual Funds
- Motilal Oswal MOSt Focused Multicap 35 Direct-G
- Motilal Oswal MOSt Focused Multicap 35 Reg-G
- Aditya Birla SL Advantage Direct-G
- Aditya Birla SL Advantage-G
- Tata Retirement Savings Progressive Direct-G
- SBI Magnum MultiCap Direct-G
- Kotak Select Focus Direct-G
- ICICI Pru Nifty Next 50 Index Direct-G
- IDBI Nifty Junior Index Direct-G
- Aditya Birla SL Equity Direct-G
Top 10 Index Funds
- Kotak Nifty ETF
- ICICI Prudential Nifty Index Fund
- Reliance ETF Nifty BeES
- UTI Nifty Index Fund
- Franklin India Index Fund - NSE Nifty Plan
- HDFC Index Fund – Nifty Plan
- HDFC Index Fund – Sensex Plan
- IDBI Nifty Index Fund
- SBI Nifty Index Fund
- Goldman Sachs Nifty Exchange Traded Scheme
Top 10 Balanced Funds
- L&T India Prudence Fund
- ICICI Prudential Balanced Fund
- Reliance Regular Savings Fund
- Birla Sun Life Balanced 95 Fund
- Canara Robeco Balance
- DSP BlackRock Balanced Fund
- Kotak Balance Fund
- UTI Balanced Fund
- Franklin India Balanced Fund
- SBI Magnum Balanced Fund
Source: BankBazaar
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