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 Fund | 14.80% | Multi Cap |
| ICICI Prudenial Large & Midcap Fund | 14.90% | Large & Midcap Fund |
| SBI Focused Equity Fund | 16.65% | Focused Fund |
| L&T India Value Fund | 18.80% | Value Fund |
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 Fund | 12.90% | ELSS |
| DSP Tax Saver Fund | 13.86% | ELSS |
| Kotak Tax Saver Scheme | 13.90% | ELSS |
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 Fund | 7.94% | Short Duration Fund |
| HDFC Corporate Bond Fund | 8.14% | Corporate Bond Fund |
| DSP Government Securites Fund | 9.31% | Gilt Fund |
| ICICI Prudential Credit Risk Fund | 9.38% | Credit Risk Fund |
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 Fund | 6.10% | Liquid Funds |
| ICICI Prudential Liquid Fund | 6.16% | Liquid Funds |
| Axis Liquid Fund | 6.20% | Liquid Funds |
| Tata Liquid Fund | 6.20% | Liquid Funds |
Further Reading:
