Investing in mutual funds is one of the most popular ways to grow your wealth in India. With a variety of mutual funds available in the market, it can be overwhelming to choose the right one for you. To help you make an informed decision, we have compiled a comprehensive list of mutual funds in India.
- Equity Mutual Funds: These funds invest primarily in stocks of various companies across sectors. The goal is to provide investors with long-term capital appreciation. Some of the top equity mutual funds in India include Axis Bluechip Fund, HDFC Equity Fund, and ICICI Prudential Bluechip Fund.
- Debt Mutual Funds: These funds invest in fixed income securities such as government bonds, corporate bonds, and money market instruments. The aim is to provide regular income to investors. Some of the top debt mutual funds in India include Aditya Birla Sun Life Corporate Bond Fund, ICICI Prudential Banking and PSU Debt Fund, and Franklin India Short Term Income Plan.
- Balanced Mutual Funds: These funds invest in a mix of equity and debt securities. The goal is to provide investors with a balance of capital appreciation and regular income. Some of the top balanced mutual funds in India include HDFC Balanced Advantage Fund, ICICI Prudential Balanced Advantage Fund, and Aditya Birla Sun Life Equity Hybrid 95 Fund.
- Index Mutual Funds: These funds invest in stocks that replicate a particular stock market index such as Nifty 50 or BSE Sensex. The goal is to provide investors with returns that closely mirror the performance of the underlying index. Some of the top index mutual funds in India include Nippon India Index Fund – Nifty Plan, UTI Nifty Index Fund, and SBI ETF Nifty 50.
- International Mutual Funds: These funds invest in stocks of companies listed overseas. The goal is to provide investors with exposure to international markets and diversify their portfolio. Some of the top international mutual funds in India include Franklin India Feeder – Franklin U.S. Opportunities Fund, ICICI Prudential Global Stable Equity Fund, and DSP World Gold Fund.
- Tax Saving Mutual Funds: These funds, also known as Equity Linked Savings Schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act. The goal is to provide investors with long-term capital appreciation while also reducing their tax liability. Some of the top tax-saving mutual funds in India include Axis Long Term Equity Fund, ICICI Prudential Long Term Equity Fund, and Aditya Birla Sun Life Tax Relief 96 Fund.
In conclusion
investing in mutual funds is an excellent way to grow your wealth over the long term. It’s crucial to understand your investment options and choose the right mutual fund that aligns with your financial goals and risk appetite. We hope this list of mutual funds in India helps you make an informed investment decision.
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Frequently Asked Questions (FAQs)
Q. What are mutual funds?
A mutual fund is an investment vehicle that pools money from multiple investors and invests in a variety of assets such as stocks, bonds, and money market instruments. The fund is managed by a professional fund manager who makes investment decisions on behalf of the investors.
Q. What are the types of mutual funds available in India?
There are several types of mutual funds available in India, including equity mutual funds, debt mutual funds, balanced mutual funds, index mutual funds, international mutual funds, and tax-saving mutual funds.
Q. What is the minimum investment required to invest in mutual funds in India?
The minimum investment required to invest in mutual funds in India varies depending on the fund. It can range from as low as Rs. 100 to as high as Rs. 5,000 or more. Some mutual funds also offer the option of investing through a Systematic Investment Plan (SIP) with a minimum investment of Rs. 500 per month.
Q. How are mutual funds taxed in India?
Mutual funds are taxed differently in India depending on the type of mutual fund and the holding period. Equity mutual funds held for more than one year are taxed at a 10% long-term capital gains tax, while debt mutual funds held for more than three years are taxed at a 20% long-term capital gains tax. Tax-saving mutual funds have a lock-in period of three years and offer tax benefits under Section 80C of the Income Tax Act.
Q. How do I choose the right mutual fund to invest in?
Choosing the right mutual fund to invest in can be challenging. It’s essential to consider factors such as your financial goals, investment horizon, risk appetite, and the fund’s past performance. It’s also recommended to consult with a financial advisor or do your research before investing.
