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Top 10 Mutual Funds in India

What are Mutual Funds?

Investment plans handled by professionals are called mutual funds. They are a collection of funds that mutual fund managers expertly manage. The fund managers monitor the development and performance of these funds and make the necessary adjustments to ensure that the funds operate efficiently and provide investors with the highest potential returns. An Asset Management Company (AMC), which manages mutual funds, receives money from several investors and invests it in bonds, equities, and other assets. The holdings of your share in a certain fund scheme are represented by the units of a mutual fund that you acquire.

We have expanded on the top-performing schemes based on categories in the sections below. Schemes from a certain category will often perform the best each season. This could perplex new investors and raise questions about whether their investments were made in the best funds.

Top 10 Mutual Funds in India

It is essential to keep the following things in mind to do well in your mutual fund investments:

  • Only begin fresh SIPs with a short-term gain in mind. Keep up the SIP for at least five years to realize significant returns.
  • Even if your current SIPs are yielding minimal returns, keep investing.
  • Choose the mutual fund's growth option for compounding higher returns.
  • Avoid investing large sums of money in top-performing equities mutual funds to profit from the bull market in the near term. It should be emphasized that the bull run might end at any point, preventing you from being able to sell the fund for a profit. Therefore, you should only make a lump sum investment in mutual funds following the markets' peak-to-trough correction. It would be best if you recorded losses in their place.
  • Moving from debt funds to fixed deposits (FDs) for guaranteed returns is not advised. This is mostly because the total interest received on FDs is added to the individual's taxable income and is taxed following their tax bracket. This means that fixed deposit returns will be low for those in the highest tax band. On the other hand, debt funds that are held for a minimum of three years might result in large tax savings.

Several Kinds of Mutual Funds

  • Debt Funds: A form of mutual fund known as a debt fund invests in fixed-income assets. Your money will be invested in money market instruments, variable rate debt, securitized funds, short-term and long-term bonds, and securitized funds under this fund.
  • Equity Funds: A form of mutual fund known as an equity fund invests money largely in equities. Both actively and passively managed funds exist.
  • Equity-Linked Savings Plans: This equity mutual fund has the characteristics of a close-funded investment. Both your wealth and taxes are increased as a result.
  • Diversified Fund: Investing in various sectors or businesses is possible with diversified funds, a form of mutual fund. You can distribute your money across numerous market industries.
  • Gilt Funds: These funds make investments in securities offered by the national government and the states. These funds have no default risk.
  • Index Fund: Your funds will be invested in mutual funds that fall under index funds, following how a stock market index operates. These funds' NAVs will closely track changes in the index's value.
  • Liquid Mutual Funds: Liquid mutual fund investment strategies would place a major portion of their capital in monetary instruments, including Treasury Bills, Term Deposits, Term deposits, Trade Papers, etc. These investments have a shorter maturity time.
  • Debt-Oriented Hybrid Funds: In this subcategory of mutual funds, most of your money will be placed in debt, with the remainder in equity. It combines stock and loan investments.
  • Arbitrage Funds: These funds are regarded as equity plans for taxation purposes. These funds make investments in the futures market as well as the cash market.
  • Dynamic Bond Funds: These will be invested in debt and money market securities through dynamic bond funds. Depending on the investments it makes, the fund's maturity will change.

Over the past few years, a major surge in Mutual Funds made available to the general public has been observed. As a result, you now have a staggering array of options. No matter which category you want to invest in, the top 10 mutual funds in various categories, as rated by CRISIL, are listed below.

Top 10 Mutual Funds in India

India's Top 10 Mutual Funds

To cater to most investors' risk tolerance and investment objectives, we have selected one top mutual fund from each category to summarize the best mutual funds in this article.

1. ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Mutual Fund's ICICI Prudential Bluechip Fund Direct-Growth is a Large Cap mutual fund program. The fund was Initiated on January 1, 2013. It has indeed existed for nine years and eleven months. As a moderate fund, ICICI Prudential Bluechip Fund Direct-Growth has 35,929 Crores under management (AUM) as of September 30, 2022. The product has a higher cost ratio than most other large-cap funds, at 1.07%. The 1-year returns for ICICI Prudential Bluechip Fund Direct-Growth are 11.51%. It has generated 15.21% average yearly returns since the start. Every three years, the fund has quadrupled the amount invested in it.

The ICICI Prudential Bluechip Fund Direct-Growth program has a better consistency of return delivery than other funds in its class. It performs better than average at limiting losses in a down market.

2. Aditya Birla Sun Life Small & Midcap Fund

This fund was established on September 4, 2007, and has been operating for 15 years and eight months. Aditya Birla Sun Life Small Cap Fund-Growth is a medium-sized fund with 3,039 Crores under management (AUM) as of September 30, 2022. The cost ratio for the fund is 2.06%, which is more than what the majority of other Small Cap funds charge. Growth returns over the last year for the Aditya Birla Sun Life Small Cap Fund are -2.60%. Since the beginning, it has produced returns of 11.30% on average annually. The money put into the fund has tripled every three years.

3. Tata Equity PE Fund

Tata Equity PE Fund Direct-Growth is the name of the real-worth mutual fund program offered by Tata Mutual Fund. Initiated on January 1, 2013, this fund. It has indeed existed for nine years and eleven months. The 1-year returns for the Tata Equity PE Fund Direct-Growth are 11.59%.

4. L&T Tax Advantage Fund

Suitable For: Investors who want to invest money for at least three years and who also want to save on their taxes and expect bigger profits. In addition, these investors must be prepared for a three-year lock-in period and the potential for modest losses on their assets.

5. HDFC Monthly Income Plan - MTP

A Medium to Long Duration mutual fund strategy from HDFC Mutual Fund is the HDFC Income Direct Plan-Growth. The growth returns on the HDFC Income Direct Plan for the past year are 2.25%. The fund's cost ratio of 0.51% is comparable to that of most other Medium to long Duration funds.

6. SBI Nifty Index Fund

It has been around for nine years and 11 months. As of September 30, 2022, SBI Nifty Index Direct Plan-Growth was a moderate fund with 3,199 Crores in management (AUM). The fund has a cost ratio of 0.18%, which is smaller than other large-cap funds. The past year's SBI Nifty Index Direct Plan growth returns were 9.56%. Since its establishment, it has produced aggregate returns of 12.53 percent yearly. The fund has doubled the cash deposited in it every three years.

7. Kotak Corporate Bond Fund

A corporate bond mutual fund product offered by Kotak Mahindra Mutual Fund is the Kotak Corporate Bond Fund Direct-Growth. The cost ratio for the fund is 0.31%, which is around the average for Corporate Bond funds.

8. Canara Robeco Gilt PGS

A Gilt mutual fund that Canara Robeco Mutual offers. It has nevertheless existed for nine years and eleven months. AUM (assets under management) for Canara Robeco Gilt Fund Direct-Growth, a moderate fund, was 90 Crores as of September 30, 2022. The cost ratio for the fund is 0.54%, which is around the average for Gilt funds.

Growth returns over the last year for the Canara Robeco Gilt Fund Direct are 2.90%. It has returns of 8.14% on average every year.

9. DSP BlackRock Balanced Fund

The fund's cost ratio, 0.79%, is lower than that of most aggressive hybrid funds. Currently, the fund is allocated 74.37% to equities and 24.35% to debt. The 1-year returns for DSP Equity & Bond Direct-Growth are 1.34%. It has generated returns of 13.39% on average every year since the start. Every six years, the fund has quadrupled the amount invested in it.

10. Axis Liquid Fund

The fund's cost ratio is 0.15 percent, which is around average for Liquid funds.The consistency of returns delivered by the Axis Liquid Direct Fund - Growth scheme is comparable to that of most funds in its class. It has a mediocre capacity to limit losses in a down market.

The fund has a strong credit history, which suggests that it has provided money to high-quality customers. Since most funds in this group lend to better debtors, the sovereign debt inside this fund is higher than the average. Small Industries Development Bank of India India Ltd, The Reserve Bank of India, Canara Bank, Reliance Retail Ventures Ltd., and Export-Import Bank of India are among the fund's largest holdings.

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