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Top 10 Mutual Funds in India

Top 10 Mutual Funds in India

Mutual funds are very popular investments as they are flexible and have diversifying benefits. The best part of mutual funds is they provide good investment opportunities for all kinds of investors. Now, there are over 44 registered mutual funds in India, which offers various schemes that satisfy the various needs of diverse investor.

On the basis of factors such as structure, tax benefits nature of investment, there can be two types of mutual fund schemes.

  1. Open-ended Funds: These funds can be bought and sold any time after the launch new fund offer(NFO). Some open-ended funds e.g. Equity Linked Savings schemes which come with a lock-in period of 3 years , can be redeemed at any point of time.
  2. Close-ended Funds: Close-ended funds can be bought only during the new fund offer (NFO). Close-ended funds come with fixed investment periods or maturity periods during which the investors cannot redeem units.

Mutual funds are further classified into 5 types on the basis of investments in open and closed-ended funds:-

  1. Equity mutual Funds: Equity mutual funds align underlying investment in equity and equity related securities. Equity Funds can further be categorized into large cap funds, mid cap fund, small cap fund, multi-cap funds, focused funds etc.
  2. Debt Funds: Debt funds have money market and / or debt market securities as their underlying investments. Debt funds can be further categorised into sub-categorised depending on the nature of the investment and their respective maturity period. For example-Liquid funds invest in money market securities which have a maturity period of up to 60 days. Ultra short duration funds invest in money market securities which has a maturity range of 90 days to 180 days.
  3. Hybrid mutual funds: These schemes invest in both, equity as well as debt instruments. The percentage allocation to equity and debt varies depending on whether they are equity oriented hybrid funds or debt oriented hybrids funds.
  4. Solution oriented funds: These funds have two categories of schemes-Retirement funds and Children’s Fund.
  5. Other schemes: These funds have two categories of schemes- Index funds/ETF which invest 95% in securities of a particular index and Fund-of-Funds (FoFs) which invest minimum 95% of total assets in underlying funds.

Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals, once a month or once a quarter. It is similar to as you can add very little installment amount as INR 500 a month. SIP is becoming popular among Indian investor, as it helps in investing in a disciplined manner without worrying about market volatility and timing the market.

Mutual Fund Axis Bank: For an Axis bank saving account customer it is very easy to invest in top performing mutual funds across different category of funds such as tax saving funds, funds for long term wealth creation, balanced funds for new to mutual funds customers who are not willing to take risk by investing in pure equity funds, liquid& debt funds for short term requirements. You can invest through your internet banking accounts or Axis Mobile app, in just a few clicks.

Mutual Fund Sahi hai :

Investing in Mutual funds is the solution to all money matters. If you are falling short of your financial goals, either it would be matter of tax saving, or your plan is to invest in stocks but are worried of the stock markets ups and downs. As a Investment avenue Mutual funds offer inflation beating tax efficient returns. They offer a complete control over your money and the freedom to invest as per your need.

Comparing Mutual funds:

A comparative analysis of Mutual funds helps us in selecting right Mutual funds scheme that meet our financial needs in defined time. There are several parameters for comparing Mutual funds.

  1. Investment Objective: There are thousands of equity scheme with different objectives. One must compare their equity or debt mutual fund scheme as well. When you compare MF schemes you should know their investment objectives.
  2. Returns Benchmarked with:Every Mutual fund is tied to a particular index or benchmark. Always select the mutual fund scheme that has given consistently higher returns than its benchmarked index.
  3. Risk Type: Not our equity Mutual funds are equal in risk. Small cap equity mutual funds have more risk in comparison to large cap mutual funds. You should compare mutual funds on the basis of their risk and pick that matches to your risk-taking capacity.
  4. Year in Existence: Mutual funds having fairly long existence have seen all types of market fluctuations. So, you need to consider the number of years of mutual fund existence and their track record while comparing funds.
  5. Exit loads and Expense Ratio: These are the charges that one pay to a fund house for mutual fund investments. The load covers the management redemption and mutual fund administration expenses. You should select a mutual fund that has higher returns even if it is charging higher loads.
  6. Returns: Returns are good indicator to study the mutual funds’ performance across different circles. One can estimate their potential returns from their SIP or lump sum investments.
  7. Portfolio: You can compare the allocation of funds across the market cap, the number of securities that have been invested in the portfolio holding sectors etc. You can also compare modified duration, average maturity and YTM of funds.

Market Risk in Mutual funds:

Market risk exists in all types of investment instruments. It is the possibility of the market or economy to decline or rise affects individual investments to lose or gain value regardless of the performance of the issue entity. As per SEBI regulation, every mutual scheme has a certain level of risk associated with it, which is defined over a risk-o-meter.

Mutual Fund, how it works:

Mutual funds are investment schemes in which money is collected into the funds that is invested by the investors. A fund manager who purchases units of securities in the market-linked instrument then manages the total funds. The aim of the investment is to meet the objective of the mutual fund scheme. As the value of the stocks changes the market fluctuations, the fund can earn the expected returns, which will reflect in an investor’s portfolio.Investors will have to redeem the units allocated to them if they wishes to access their money.

Mutual Fund Gains Return:

High Return Mutual Funds:

The Indian capital market contains numerous investments across various assets classes, allowing investors to diversify and make good returns. One of the most widely utilised investment instruments is Mutual Funds. Mutual Funds are investment vehicles that pool money from multiple investors to invest in a portfolio of assets such as stocks, bonds, and other securities. However, it depends entirely on the chosen asset to determine the returns the investors will get. For example, if the mutual fund aims to provide steady returns, the fund manager may choose assets with steady return and less risk. However, there are high- return mutual funds that aim to maximize the return potential for investors investing in assets that have the highest growth potential.

Mutual fund under 80c:

one of the simplest tax-saving options available under Section 80C of the Income Tax Act is Equity Linked Savings Scheme or (also known as tax saving mutual fund). Such funds typically invest across market capitalisation segments, that is large-cap, mid-cap, and small-cap stock, and sectors. By investing in Equity linked saving scheme you not only save tax but also earn inflation-beating returns since you are investing in equities.

Mutual Fund tax gains: 

Mutual funds are taxed as per long-term capital gains  and short-term capital gains . These are profits made on the sale of the units of an investment held for long-term (more than 36 months) or a short- term (less than 36 months). The Long term capital gain tax rate is 10%, while the Short term capital gain tax rate is as per the existing income tax slabs. Mutual funds like Equity Linked Savings Schemes are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

Mutual Funds for students:

Students can start their investment journey easily by putting in money in mutual funds over the long term. Investment can be fruitful for the students in various ways. For example, they could fund their own higher education, save up enough money to purchase their bike, for instance, sponsor their vacations and trips. Mutual funds are product that helps in wealth creation. You will be surprised over the returns. Students who do not earn a stipend can still save a portion of their pocket money each month and invest it in mutual funds through Systematic Investment Plans(SIPs).

Mutual Fund Government Bond:

When a State or Central Government requires funds, they approach the RBI. RBI then accumulates funds from insurance companies or banks and lends it to the government. Gilt funds subscribe to these securities. The fund returns it once the security matures, and receives a payout. These funds generate returns through interest rate risk. The prices of government securities fall with an enhancement in the interest rates. It has a direct impact on its performance.

Top Mutual Fund House in India:

1. SBI MUTUAL FUND

2. ICICI Prudential Mutual Fund

3. HDFC Mutual Fund

4.Aditya Birla Sun Life Mutual Fund

5. Kotak Mahindra Mutual Fund

6. Nippon India Mutual Fund

7. Axis Mutual Fund

8. UTI Mutual Fund

9. IDFC Mutual Fund

10. DSP Mutual Fund

Top 10 Mutual Fund Advisors in India

  1. Neelesh Surana, Mirae Asset Global Investments
  2. R Janaki Raman, Franklin Templeton Mutual Fund
  3. Sohini Andani, SBI Mutual Fund
  4. Chirag Setalvad, HDFC Mutual Fund
  5. Vinit Samber, DSP BlackRock Mutual Fund
  6. Roshni Jain, Franklin Templeton Mutual Fund
  7. Ajay Garg, Aditya Birla Sun Life Mutual Fund
  8. S.Krishnakumar, Sundaram Mutual Fund
  9. Pankaj Tibrewal, Kotak Mutual Fund
  10. Mrinal Singh, ICICI Prudential Mutual Fund

Conclusion:

Mutual fund investment has the potential to provide high returns to investors based on the asset allocation and the chosen assets. Depending on investors’ risk appetite and investment goals, they can invest in a high-return mutual fund to realize the higher risk with the potential of high returns. However, it is always wise to seek the advice of a financial advisor before making any investment decisions, especially when considering high-return mutual funds. A Financial advisor can help assess whether a high-return mutual fund is suitable for your investment objectives and risk tolerance and can recommend other investment options if necessary.

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