If you’re thinking about investing in mutual funds, it is important to ensure that you’re investing in the right kind of fund that is aligned with the purpose of investment.
While there are various types of mutual funds based on their structure and investment objectives, such as debt funds & equity funds, it’s obvious that for the best returns on a fund, you must invest in the best-performing funds in the market.
This article will help you gain some clarity about which mutual fund to invest in by analyzing different mutual fund schemes based on their market performance.
But First Things First: What Is A Mutual Fund?
A mutual fund is an open-ended managed investment fund that pools money from investors to purchase stocks, bonds, and other assets. If you want to invest in mutual funds, your aim must be to create a more diversified portfolio.
Types Of Mutual Funds
A mutual fund can be roughly categorized into three types:
1. Equity Funds are usually long-term investments, ranging from 4 years and more.
2.Debt Funds range from short to medium term.
3. Hybrid Funds are investments that range from medium to long term.
Top-Performing Mutual Funds Of 2021
Let’s have a look at the best mutual funds that you can invest in depending on their fund performance, track record, and consistency:
Best Debt Mutual Funds of 2021
1. Tata Liquid Fund (G)
Liquid fund
Growth at par with inflation
Fund size= ₹10,256 Cr.
3-year CAGR= 5.38%
2. ICICI Prudential Savings Fund (G)
Low duration investment
The historical growth rate of 6.5% per annum
Fund size= ₹30,234 Cr.
3-year CAGR= 7.66%
3. Kotak Savings Fund (G)
Ultra short investment
The relative safety of capital
Fund size= ₹11,759 Cr
3-year CAGR= 6.35%
Best Equity Mutual Funds of 2021
1. Parag Parikh Flexi Cap Fund (G)
Diversified investment
The expense ratio= 0.89%
Fund size= ₹10,276 Cr.-
5-year CAGR= 20.26%
2. Axis Bluechip Fund (G)
Large-cap
Fund size= ₹27,142 Cr.
5-year CAGR= 16.40%
3. Mirae Asset Large Cap Fund (G)
Large-cap
Fund size= ₹25,721 Cr.
5-year CAGR= 16.07%
4. Invesco India Growth Opportunities Fund (G)
Diversified investment
Fund size= ₹3,835 Cr
5-year CAGR= 15.75%
Best Tax Saving Mutual Funds of 2021
1. Mirae Asset Large Cap Fund (G)
Tax saving
Expense ratio= 0.47%
Fund size= ₹3,835 Cr.
5-year CAGR= 15.75%
2. Canara Robeco Equity Taxsaver
Tax saving
Fund size= ₹2,226 Cr.
5-year CAGR= 19.94%
Best Liquid Mutual Funds of 2021
1. Axis Liquid Fund
Liquid fund
Fund size= ₹21,794 Cr.
3-year CAGR= 5.40%
2. Tata Liquid Fund
Liquid fund
Fund size= ₹21,794 Cr.
3-year CAGR= 5.38%
The Bottom Line
Investing in the best mutual funds can help you achieve both long and short-term goals depending on the purpose of your investment. Even though mutual funds are subjected to market volatility, lots of them have a proven track record, excellent fund performance, and perform consistently.
FAQs
1. What Is A Mutual Fund?
A mutual fund is an open-ended managed investment fund that pools money from investors to purchase stocks, bonds, and other assets. If you want to invest in mutual funds, your aim must be to create a more diversified portfolio.
2. Which is the best equity mutual fund?
Parag Parikh Flexi Cap Fund (G) is considered one of the best equity mutual funds you can invest in today. The investment has the following features: