Categories of Best Mutual Funds
(1)Equity Funds: Equity funds are a type of Best mutual fund or exchange-traded fund (ETF) that primarily invests in stocks or equities.
(2) Debt Funds: Lower risk with stable returns, ideal for conservative investors looking for income or short-term goals.
(3) Hybrid Funds: Combine equity , offering a balanced risk-return profile.
(4) Index Funds:Index funds aren’t limited to broad market indexes like the S&P 500. They can track various asset classes, sectors, regions, or investment strategies:&P 500 or Nifty 50.
(5) Sector/Thematic Funds: High-risk funds focusing on specific sectors like IT, healthcare, or themes like ESG.
(6) Tax-Saving Funds (ELSS): Equity-linked savings schemes offering tax benefits under Section 80C of the Income Tax Act (India).
Top Equity Best Mutual Funds (High Risk, Long-Term Growth)
(1) Large Cap Funds:
- SBI Bluechip Fund (India) – Focuses on large, established companies with stable performance.
- Vanguard 500 Index Fund (US) – Tracks the S&P 500, offering broad market exposure.
(2) Mid-Cap Funds:
- Axis Midcap Fund (India) – Known for strong performance in the mid-cap space.
- Fidelity Mid-Cap Stock Fund (US) – Offers growth opportunities in mid-sized companies.
(3) Small Cap Funds:
- Nippon India Small Cap Fund (India) – Focuses on high-growth small-cap companies
- Schwab Small-Cap Index Fund (US) – Low-cost exposure to small-cap stocks.
(4) ELSS (Tax-Saving Funds – India):
- Axis Long-Term Equity Fund – Consistent long-term performance
- Mirae Asset Tax Saver Fund – High-growth potential and tax benefits.
Top Debt Best Mutual Funds (Low Risk, Stable Returns)
(1) Short-Term Debt Funds:
- HDFC Short Term Debt Fund (India) – Ideal for conservative investors.
- PIMCO Short-Term Fund (US) – A reliable option for steady returns.
(2) Corporate Bond Funds:
- Schwab Intermediate-Term Bond Fund (US) – Balanced risk and returns.
- Franklin India Corporate Debt Fund – Focuses on high-quality corporate bonds.
(3) Liquid Funds (For Parking Short-Term Funds):
Fidelity Treasury Only Fund (US) – Government-backed securities for low risk.
ICICI Prudential Liquid Fund (India) – Safe and highly liquid.
Top Hybrid Best Mutual Funds (Balanced Risk-Reward)
(1) Aggressive Hybrid Funds:
- Vanguard Balanced Index Fund (US) – Offers a 60/40 equity-to-bond allocation.
- ICICI Prudential Balanced Advantage Fund (India) – Combines equity and debt dynamically.
(2) Conservative Hybrid Funds:
- American Funds Income Fund of America (US) – Income-focused hybrid fund.
- HDFC Hybrid Debt Fund (India) – Higher debt exposure with modest equity.
Top Index Best Mutual Funds (Low Cost, Passive Investing)
- Vanguard Total Stock Market Index Fund (US) – Tracks the entire US stock market.
- UTI Nifty Index Fund (India) – Mirrors Nifty 50 performance.
- Schwab International Index Fund (US) – For global market exposure.
(1) Equity Best Mutual Funds (For High Growth Potential)
-> Ideal for long-term investment (5+ years) with higher risk.
=> Large-Cap Funds
SBI Bluechip Fund
- 5-Year Return: ~12.5%
- Expense Ratio: ~1.0%
- Risk: Moderate
Axis Bluechip Fund
- 5-Year Return: ~13.8%
- Expense Ratio: ~0.94%
- Risk: Moderate
=> Mid-Cap Funds
Nippon India Growth Fund
- 5-Year Return: ~19.5%
- Expense Ratio: ~1.24%
- Risk: High
Kotak Emerging Equity Fund
- 5-Year Return: ~18.6%
- Expense Ratio: ~0.95%
- Risk: High
=> Small-Cap
SBI Small Cap Fund
- 5-Year Return: ~23.4%
- Expense Ratio: ~1.12%
- Risk: High
Axis Small Cap Fund
- 5-Year Return: ~22.9%
- Expense Ratio: ~0.92%
- Risk: High
(2) Debt Best Mutual Funds (For Stability and Low Risk)
-> Suitable for short to medium-term goals.
=>Liquid Funds
HDFC Liquid Fund
- 3-Year Return: ~4.4%
- Expense Ratio: ~0.2%
Aditya Birla Sun Life Liquid Fund
- 3-Year Return: ~4.5%
- Expense Ratio: ~0.25%
=> Short-Term Debt Funds
ICICI Prudential Short Term Fund
- 3-Year Return: ~6.2%
- Expense Ratio: ~0.45%
Axis Short Term Fund
- 3-Year Return: ~6.1%
- Expense Ratio: ~0.37%
-> Know – How to invest in SIP?
-> Know – How to invest in Mutual Fund ?
