Investing in mutual funds is one of the easiest and most convenient ways to grow your wealth in India. With a wide range of mutual fund options available in the market, it can be challenging to choose the right one that fits your investment goals and risk appetite. In this blog, we will discuss the best mutual funds to invest in 2021 in India.
- Mirae Asset Large Cap Fund
The Mirae Asset Large Cap Fund is a top-performing mutual fund that invests in large-cap companies in India. It has consistently outperformed its benchmark and peers over the years. The fund’s portfolio includes companies such as HDFC Bank, Infosys, Reliance Industries, and ICICI Bank, among others. The fund has a 5-star rating from CRISIL and has provided a return of 20.5% in the past year.
- Axis Bluechip Fund
The Axis Bluechip Fund is another popular mutual fund that invests in large-cap companies. The fund has a diversified portfolio of high-quality blue-chip companies such as Bajaj Finance, HDFC Bank, and Kotak Mahindra Bank, among others. It has a 4-star rating from CRISIL and has provided a return of 18.6% in the past year.
- SBI Magnum Midcap Fund
The SBI Magnum Midcap Fund is a top-performing mid-cap mutual fund that invests in mid-cap companies in India. The fund’s portfolio includes companies such as Cholamandalam Investment and Finance Company, City Union Bank, and Muthoot Finance, among others. The fund has a 5-star rating from CRISIL and has provided a return of 34.5% in the past year.
- ICICI Prudential Balanced Advantage Fund
The ICICI Prudential Balanced Advantage Fund is a hybrid mutual fund that invests in both equity and debt securities. The fund aims to generate long-term capital appreciation by investing in a combination of equity and debt instruments. The fund has a 5-star rating from CRISIL and has provided a return of 14.5% in the past year.
- Axis Long Term Equity Fund
The Axis Long Term Equity Fund is a top-performing tax-saving mutual fund that invests in equity securities. The fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity securities. The fund has a 5-star rating from CRISIL and has provided a return of 23.5% in the past year.
Conclusion
Investing in mutual funds is an excellent way to grow your wealth in India. It is important to choose the right mutual fund that aligns with your investment goals and risk appetite. The mutual funds listed above are some of the best mutual funds to invest in 2021 in India. However, before investing, make sure to do your research and consult with a financial advisor to make an informed decision.
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Frequently Asked Questions (FAQs)
Q: What are the best mutual funds to invest in 2021 in India?
A: Some of the best mutual funds to invest in 2021 in India are Mirae Asset Large Cap Fund, Axis Bluechip Fund, SBI Magnum Midcap Fund, ICICI Prudential Balanced Advantage Fund, and Axis Long Term Equity Fund.
Q: How to choose the best mutual fund to invest in?
A: To choose the best mutual fund, you should consider factors such as your investment goals, risk appetite, past performance of the fund, expense ratio, and fund manager’s track record.
Q: Is it safe to invest in mutual funds in 2021?
A: Investing in mutual funds comes with a certain degree of risk, but it is generally considered a safe investment option. It is essential to do your research and invest in mutual funds with a good track record and a diversified portfolio of assets.
Q: What is the difference between large-cap and mid-cap mutual funds?
A: Large-cap mutual funds invest in companies with a market capitalization of over Rs. 10,000 crore, while mid-cap mutual funds invest in companies with a market capitalization of between Rs. 5,000 crore to Rs. 10,000 crore.
Q: Can I invest in mutual funds online?
A: Yes, you can invest in mutual funds online through various online platforms such as mutual fund distributors, online brokers, and mobile applications.
Q: What are the tax implications of investing in mutual funds in India?
A: The tax implications of investing in mutual funds in India depend on the type of mutual fund and the holding period. Equity mutual funds held for over one year are taxed at 10%, while debt mutual funds held for over three years are taxed at 20% after indexation.
Q: Should I consult with a financial advisor before investing in mutual funds?
A: It is always recommended to consult with a financial advisor before investing in mutual funds. A financial advisor can provide you with personalized investment advice and help you choose the right mutual fund that aligns with your investment goals and risk appetite.
