What Are The Names Of Top 3 Most Popular Mutual Funds

A mutual fund is a pooled investment vehicle wherein an asset management company raises capital from multiple investors (institutional and individual). This raised capital is then invested in funds in capital markets through stocks, bonds, debt, etc. The consolidated holding of the fund is known as the mutual fund’s portfolio.

Investors hold shares in the mutual fund. A share represents an investor’s part ownership in the fund and the fund’s generated income.

What are the advantages of investing in mutual funds?

  • Funds are professionally managed. Expert fund managers make investment decisions and monitor performance on behalf of the investors
  • Lower risk through diversification in investments by the fund
  • Low levels of initial and subsequent investments, thus enhancing affordability
  • Higher liquidity, thus easily redeemable at the current net asset value (NAV)
  • Safety of investment as mutual funds are regulated by SEBI
  • Comparatively returns than traditional avenues like bank fixed deposits

Top mutual funds in India in 2021

Top performing mutual funds are those that outperform the benchmark and peer funds in their category. These top mutual funds return value for money to investors at a low expense ratio.

While deciding on the top mutual funds to invest in, evaluate the fund’s past performance of providing returns, check its financial ratios, and whether it has a reasonable expense ratio.

A Systematic Investment Plan (SIP) is a popular way to invest in mutual funds. You can also invest in mutual funds with a lump sum amount. Investing through a SIP allows you to make smaller investments regularly over a period of time.

What are the various types of mutual funds?

SIP mutual funds, equity mutual funds, small-cap/mid-cap/large-cap/multi-cap mutual funds, tax saving mutual funds, debt funds, income funds, balanced mutual funds are some types of mutual funds available for investors.

The top-performing mutual funds in India (equity funds)* are:

  • ICICI Prudential technology fund – Direct plan- Growth
  • ICICI Prudential technology fund
  • Aditya Birla Sun Life Digital India Fund – Growth -Direct plan
  • TATA digital India fund-Direct plan- Growth
  • Quant small-cap fund-Direct plan-Growth
  • Aditya Birla Sun Life Digital India Fund – Growth
  • SBI technology opportunities Fund-Direct Plan-Growth
  • TATA digital India fund regular growth
  • SBI technology opportunities fund
  • Mirae asset healthcare fund-Growth

The top 10 mutual funds for SIP to invest in 2021 (debt funds)* are:

  • IDFC Government securities fund-constant maturity plan-Growth-Direct
  • IDFC Government securities fund-constant maturity plan-Regular-Growth
  • ICICI Prudential constant maturity gilt fund-Direct plan- Growth
  • IDFC Government securities fund-investment plan-Growth-Direct
  • ICICI Prudential constant maturity gilt fund
  • Nippon India Nivesh Lakshya Fund-Direct plan-Growth
  • DSP government securities fund-Direct plan-Growth
  • Nippon India Nivesh Lakshya Fund-Regular plan-Growth
  • Edelweiss government securities fund-Direct plan-Growth
  • IDFC Government securities fund-Investment plan-Regular plan-Growth

The top ten mutual funds 2021 (Hybrid)* are:

  • Quant multi-asset fund-Direct plan-Growth
  • Quant multi-asset fund-Growth
  • ICICI Prudential pharma healthcare and diagnostics fund-Direct plan- Growth
  • Quant absolute fund-Direct plan-Growth
  • Quant absolute fund- Growth
  • Kotak asset allocator fund-Direct Plan-Growth
  • HDFC retirement savings fund-Equity plan-Direct Plan-Growth
  • Kotak asset allocator fund
  • ICICI Prudential thematic advantage fund-DirectPlan-Growth
  • BNP Paribas substantial equity hybrid fund-Direct plan-Growth

*As of September 2021

Investments in mutual funds are not without their downsides. One needs to watch out for high expense ratios and sales charges, management style, tax inefficiency, and poor trade execution. However, mutual fund investments could be one of the better options for you provided you do your due diligence before investing.

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