Investment

About Mutual Funds

The Types Mutual Funds in India To Invest:

1) Equity Mutual Funds or Long Term Funds:

  • Investing in equity mutual funds is very risky, as the full amount will be invested in the Equity Market butt these funds have the capability to generate higher returns compared to other funds.
  • These types of funds are suitable for long-term goals.

2) Balanced Funds:

  • Balanced Funds are also known as hybrid funds with money invested in both stocks and bonds.
  • These funds are ideal for those people who are looking for a mixture of safety, income, and modest capital appreciation.

Top Balanced Fund To Invest In 2023 (Source: Policybazaar):

Funds

Five Year Returns

Three Year Returns

Required Investment

Equity Direct fund Kotak

14.86%

20.65%

₹5000

Prudential Equity & Debt fund ICICI

16.41%

19.67%

₹5000

Equity & Bond fund DSP

13.6%

19.55%

₹500

SBI Equity Hybrid Fund-Direct Plan-Growth

15.09%

18.66%

₹1000

Mirae Asset Hybrid- Equity Fund-Direct Plan-Growth

16.62%

18.92%

₹5000

3) Fixed Income Funds:

  • These types of mutual funds are good for the medium term and are less risky.
  • The money in these funds is not invested in equity funds.
  • Good fund for earning extra income to complete your daily needs.

4) ELSS Mutual Funds:

  • ELSS funds are also known as the Tax Saving Mutual Funds.
  • All Investors can claim deductions up to Rs 1.5 lakh a year with the ELSS funds as per Section 80C of the Income Tax Act, 1961.
  • In these types of funds, there’s no maximum limit to invest, and can generate higher returns when compared to the PPF and NPS.

Top Best ELSS Funds to Invest in 2023 as per Cleartax data: Based on the past 5-year returns:

Mutual fund5 Yr. Returns3 Yr. ReturnsMin. Investment
Quant Tax Plan – Direct-Growth Plan-Growth0.22960.4039₹500
SBI Tax Advantage Fund Series III Direct Growth0.27640.375
SBI Tax Advantage Fund Series III Regular Growth0.26960.3678
Quant Tax Plan Payout of Income Distribution cum capital withdrawal option Option Direct Plan0.21210.3543
SBI Long Term Advantage Fund Series IV Direct Plan-Growth0.3523
SBI Tax Advantage Fund Series II Growth0.25250.3455
SBI Long Term Advantage Fund Series IV Regular Plan-Growth0.3451
Quant Tax Plan Reinvestment of Income Distribution cum capital withdrawal option0.19480.3311
Quant Tax Plan Payout of Income Distribution cum capital withdrawal option0.19480.3311
Quant Tax Plan-Growth0.19420.3299

5) Liquid Funds:

  • Liquid funds are also known as short-term and ongoing funds.
  • Liquid funds generate very few returns but have almost no risk and provide 100% returns.
  • There’s zero exit load in these kinds of funds.

5 Top Liquid Mutual Funds in India to Invest in 2020: (Source: ClearTax)

Fund NameAUM (cr.)1 Year Returns3 Year Returns5 Year Returns
Aditya Birla Sun Life Liquid Fund₹40,8356.70%6.99%7.43%
Axis Liquid Fund₹29,1196.61%6.98%7.39%
Nippon India Liquid Fund₹24,2356.69%7.00%7.42%
Franklin India Liquid Fund₹12,5296.85%7.07%7.49%
Baroda Liquid Fund₹6,0716.62%7.00%7.46%

You can invest in mutual funds through 3rd party applications or by visiting directly to the Mutual fund companies’ websites.

You can also make use of ET-money, Fisdom, Angel Bee applications or websites to invest in mutual funds.

To invest in Direct mutual funds use Mycams, Zerodha application or website.

Also, you can give requests to cancel, redeem and switch funds online or through the Application anytime.

Also, Read at knowandask:

ELSS Mutual Funds in India Save Tax While Creating Wealth.

Liquid Mutual Funds in India for Safe and short investment.

Equity Mutual Funds in India – High Risk but High Returns.

Balanced Mutual Funds in India also called hybrid funds.

Amit Singh Rawat_Knowandask

Amit Singh Rawat: Owner/ Founder of Knowandask a Digital Learning platform to educate yourself learn spread knowledge and share knowledge.

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