Best Mutual Fund Categories Of 2021
What Is A Mutual Fund?
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.
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.
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.
How They Work
Money is collected from a group and invested together.
The fund manager does thorough research and analysis before investing to ensure the best outcomes.
Duration And Type
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.
Best Equity Funds For 2021
These include the Axis Bluechip Fund (G), Invesco India Growth Opportunities Fund (G), Kotak Flexicap Fund (G) Mirae Asset Large Cap Fund (G).
Best Debt Mutual Funds
These include ICICI Prudential Savings Fund (G), Kotak Savings Fund (G) Tata Liquid Fund (G).
Best Liquid Funds
Liquid funds are open-ended debt MFs which invest money into short-term money market instruments which mature faster.
Axis Liquid Fund (G) Tata Liquid Fund (G) are two good options.
Start Investing Today
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!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.