Top Mutual Fund Investment in India

Did you just type this phrase on a search engine? Or did you ask this question to your friends or colleagues for the top mutual funds to invest in? No doubt, investing in mutual funds can be overwhelming if you don't know which one to opt for. Mutual funds are professionally managed investment schemes.

They denote a pool of funds that are managed professionally by mutual fund managers. Usually, the fund managers keep a tab on the performance and growth of these funds and implement specific changes so that the funds perform well and provide investors with good returns. So before delving into the top-performing mutual funds, let's take a glance at the various aspects of investing in them.

Top Ways to Get Healthy Returns from Mutual Fund Investments

Here are some of the points which would help you avail healthy returns from mutual fund investments.

♦ Refrain from stopping your existing SIPs when the returns are low

♦ Don't commence with new SIPs by targeting short-term gains

♦ It is always advisable to continue with a SIP for a minimum of five years

♦ Go for growth option for mutual funds to get increased returns via compounding

♦ If you are targeting assured returns, then don't move from debt funds to fixed deposits

The points mentioned earlier are essential to keep in mind if you are a new investor in the realm of mutual funds. Also, don't overrule the significance of a mutual fund screener.

With the help of this screening tool, you would be able to recognize mutual funds that meet your specific requirements. So now that you know the essential points before investing, let's find out the varied types of mutual funds.

Various Types of Mutual Funds

Before investing in the top mutual funds, you should be aware of their types. Here are some of the most common types of mutual funds that you can invest in.

♦ Equity Funds

An equity fund is a type of mutual fund that invests mainly in stocks. There are both actively and passively managed funds under equity funds.

♦ Debt Funds

A debt fund refers to that type of mutual fund which invests in fixed-income securities. Note that under this fund, your money would be primarily invested in bonds and rate debts.

♦ Gilt Funds

Gilt funds are those types of mutual funds which provide money to the securities offered by the central and the state governments. Always remember that these funds come without any default risk.

♦ Liquid Mutual Funds

Liquid mutual funds are mutual funds that would provide funds mainly to various types of money market instruments. From term deposits to commercial papers, liquid mutual funds also come with a lower maturity period.

♦ Diversified Funds

As the name suggests, diversified funds permit you to invest in various industry domains and sectors. In other words, you can extend your investments across multiple industries in the market.

♦ Top Mutual Funds to Invest

Now that you know the various intricacies of investing, here are some of the top mutual funds to invest in 2021.

♦ Mirae Asset Large Cap Fund

Well, the Mirae Asset Large Cap Fund has been quite proficient when the context is about delivering risk-adjusted returns over the long run. Note that this scheme invests 80 percent of its portfolio in large-cap stocks based on SEBI's orders.

Over the last one-year, five-year, and three-year periods, this mutual fund scheme has been able to facilitate 11.8 percent, 13.4 percent, and 8.5 percent returns. Also, remember that this mutual fund has a well-diversified portfolio.

It is one of those mutual fund schemes which provide around 13 percent of the portfolio to mid and small stocks. And in case you don't know, the top three holdings of this mutual fund scheme are Infosys, HDFC Bank, and Reliance Industries.

SBI Bluechip Fund

Well, in the large-cap category, SBI Bluechip Fund is one of the best mutual funds you can invest in. And if you are an experienced investor, you might be well aware of the fact that large-cap funds are ideal and possibly the safest funds in the equity category.

In case you don't know, the SBI Bluechip Fund is an open-ended fund that belongs to the equity category. The minimum initial investment is 500 INR. So as you can see, even if you have financial issues, you can easily invest in the SBI Bluechip Fund with complete peace of mind.

And like any other equity fund, this fund also aims to provide a long-term appreciation of capital by investing in equity and equity-related securities. This fund also invests in the debt and money market to provide investors with good returns.

Axis Bluechip Fund

During the last five-year and ten-year period, the Axis Bluechip Fund has been able to generate 6.5% and 9.6% returns, respectively. So as you can see, the Axis Bluechip Fund remains one of the most preferred mutual fund investment schemes.

Quite impressively, more than 90% of this scheme's portfolio remains invested in large-cap organizations and blue-chip. One of the key highlights of the Axis Bluechip Fund is that it held around 10% to 20% cash between April and July 2020. In case you don't know, it was the period when most of the other funds were investing more in equities.

Also, the Axis Bluechip Fund has been able to perform satisfactorily across various markets over the period of ten years. Considering investing in Axis Bluechip Fund in small allocations wouldn't hurt your financial interests.

Wrapping Up

So as you can see, investing in mutual funds involves a large variety of intricacies. At times, schemes from a single category may dominate. If you are new to this investment market, ensure that you have thoroughly assessed the risk factors. While choosing the best mutual funds for investing, consider evaluating its track record. It would be best if you also looked at its consistency and performance over the last five years. All these factors would allow you to get the best out of mutual fund investments.