Top Mutual Funds

Below is the list of best performing mutual funds to invest (SIP) in India.


1.) Equity Funds


What is Equity Fund ?

An equity fund is a type of mutual fund investment that helps the investor to earn very high returns with the objective of long-term growth through capital gains. This is also known as stock fund.

Equity mutual funds are basically invested in stocks that can be managed actively or passively by the fund manager.

These mutual funds are basically categorized according to the company size, the investment style of the holding in the portfolio, and geographical distribution.

What are the benefits of Investing in Equity funds ?

  • Long term capital gain.
  • It is well regulated.
  • Transparency.
  • High liquidity.
  • Investors have a broad range of investment options.
  • Tax Friendly long term returns as they are taxed at 10% over and above the exempted long term gain of Rs. 100,000 in a financial year.
Name of Fund 5 year returns (p.a.) Scheme Category
Canara Robecco Equity Diversified Fund 17.50% Multi Cap
Kotak Standard Multicap Fund14.80%Multi Cap
ICICI Prudenial Large & Midcap Fund14.90%Large & Midcap Fund
SBI Focused Equity Fund 16.65%Focused Fund
L&T India Value Fund18.80%Value Fund
You can invest in equity funds for the growth of your capital. The minimum time horizon required is 3 years.


2.) Tax Saving Funds (ELSS)


What are Tax Saving funds (ELSS) ?

ELSS stands for an Equity Linked Saving Scheme, also known as tax saving mutual fund schemes which help in saving the taxes and gives an opportunity to grow money.

They come under the Equity Funds and help in tax deduction up to 1.5 lakhs annually as per Section 80C of the Income Tax Act.

What are the benefits of Investing in ELSS funds ?

  • It provides higher returns.
  • Tax-saving under section 80C.
  • The moderate risk with high diversification.
  • Lock-in period just only for 3 years.
  • Transparency of the portfolio is easily available to all investors through monthly factsheets.
  • It provides flexibility to invest through SIP or Lumpsum mode.
Name of Fund 5 year returns (p.a.) Scheme Category
Axis Long Term Equity Fund 14.30% ELSS
IDFC Tax Saver Fund 12.67%ELSS
Franklin India Taxshield Fund12.90%ELSS
DSP Tax Saver Fund13.86% ELSS
Kotak Tax Saver Scheme13.90%ELSS
You can invest in ELSS funds for tax savings u/s 80c of income tax act with a lock in of 3 years.It is one of the best options to save tax with a growth of investment amount.



3.) Debt Funds


What is debt fund ?

Debt funds are also known as fixed income funds. This category invests in corporate bonds, government bonds, T-Bills etc as per the pre decided objective. So, when the investors invest their money in this mutual fund then this mutual fund purchases bonds and whatever the interest earned from that bond, passes to its investors after deducting their charges.

What are the benefits of Investing in Debt funds ?

  • It has low risk.
  • Short term capital gains are chargeable at 15% whereas the interest income from FD is added to your total income and normal tax slabs will apply to the income.
  • You can take indexation benefit in long term capital gains.
  • It is highly secured.
  • It is liquid-able.
  • It is fully diversified in bonds of different companies. Therefore, the impact of nonpayment of principal and interest is very low.
Name of Fund 5 year returns (p.a.) Scheme Category
Axis Short Term Fund 7.56% Short Duration Fund
HDFC Short Term Debt Fund7.94%Short Duration Fund
HDFC Corporate Bond Fund8.14%Corporate Bond Fund
DSP Government Securites Fund9.31%Gilt Fund
ICICI Prudential Credit Risk Fund9.38%Credit Risk Fund
These funds are alternative to fixed deposit.You can invest in Gilt funds,corporate bond funds,credit risk funds based on your risk appetite and time horizon.

4.) Liquid Funds


What is Liquid Fund ?

The Liquid fund is the type of debt fund which is for very short term investments. They are usually invested in money market instruments i.e. certificate of deposit which is offered by the commercial bank, a commercial paper that is issued by companies and financial institutions, treasury bills which are issued by the government of India.

The Liquid funds have a very short-term maturity period means up to 90 days so it makes the redemption process easy on investor’s demand. There is no any exit load if the redemption is after 7 days of investment. Before 7 days, there is a graded exit load charged from investors.

What are the benefits of Investing in Liquid funds ?

  • There is no lock-in period with high liquidity.
  • Minimum risk or no risk.
  • The withdrawal process is fast.
  • It provides higher returns.
  • Nil exit loads after 7 days of investment.
Name of Fund 5 year returns (p.a.) Scheme Category
Baroda Liquid Fund 6.25% Liquid Funds
L&T Liquid Fund6.10% Liquid Funds
ICICI Prudential Liquid Fund6.16% Liquid Funds
Axis Liquid Fund6.20% Liquid Funds
Tata Liquid Fund6.20% Liquid Funds
These are best funds for parking your money for a very short period of time.The funds invest in securities which have maturities of less than 91 days. You can withdraw your money after 7 days without any exit load.

Further Reading:

www.mutualfundssahihai.com

www.amfiindia.com

If you have any queries or suggestions, please contact us at bestadvisor2020@gmail.com.

Disclaimer

We do not offer any financial advice/recommendations through this website. This website should be used only for informational/educational/knowledge enhancement purposes.
Investment in mutual funds or any asset class comes with an inherent risk. This is just a web-based tool for getting a rough estimate about the future value of your SIP/lump sum investments. The calculations are based on projected annual returns and periods. The actual annual returns may be higher or lower than the estimated value and it may have a significant impact on the final returns/goals.
So, you are requested to kindly do your own analysis or hire an expert financial advisor/planner before making any investment decision.

Notice: I do not receive any "payment" or "fee" or "commission" for listing the funds on the website. You are requested to suggest any new features or report any error to help us to improve this website.

© Copyright 2020 SIP Calculator | All Rights Reserved