Best Mutual Fund Categories Of 2021

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Mutual funds gather money from several investors to buy securities.

The fund is handled by a fund manager - an expert who follows financial market and securities trends and knows where to invest.

What Is A Mutual Fund?

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These funds invest in equities, or directly in the stock market.

The funds can be theme-based - investing in large-cap/mid-cap stocks; or sector-based, investing in pharma/FMCG, etc. 

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Equity MFs

A debt fund is a fund that invests in bonds, or other debt securities.

These are ideal for more conservative investors as the risk factor is less.

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Debt Funds

Money is collected from a group and invested together. 

The fund manager does thorough research and analysis before investing to ensure the best returns. 

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How They Work

Investors can choose from a variety of funds based on their needs: long term (5+ years), short-term (1-5 years), funds for emergency needs as well as tax-saving funds. 

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Duration And Type

These include the  Axis Bluechip Fund (G),  Invesco India Growth Opportunities Fund (G),  Kotak Flexicap Fund (G)  Mirae Asset Large Cap Fund (G).

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Best Equity Funds For 2021

These include  Mirae Asset Tax Saver Fund (G)  and the Motilal Oswal Long Term Equity Fund (G) offering returns of 17.37% and 7.93% over a 3-year period, respectively.

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Best Tax-Saving Mutual Funds

These include  ICICI Prudential Savings Fund (G),  Kotak Savings Fund (G)  Tata Liquid Fund (G).

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Best Debt Mutual Funds

Liquid funds are open-ended debt MFs which invest money into short-term money market instruments which mature faster.

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Best Liquid Funds

Axis Liquid Fund (G) & Tata Liquid Fund (G) are two good options.

You now know some of the options available based on the type of fund and duration - so taking into account your needs and the amount of money you have, start investing today!

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Start Investing Today

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.