Top 5 Mutual Funds in 2021
Investing in mutual funds is one of the most popular ways to invest in the stock market. With a wide range of options available, selecting the right mutual fund can be challenging. In this blog, we will explore the top 5 mutual funds in 2021 that you should consider adding to your investment portfolio.
- Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is a large-cap mutual fund that has consistently outperformed its benchmark over the past few years. The fund invests in well-established companies that have a proven track record of generating sustainable profits. The fund has a 5-star rating from Morningstar and has delivered an impressive 23.16% return over the past year.
- Axis Bluechip Fund
Axis Bluechip Fund is another large-cap mutual fund that has performed well in 2021. The fund invests in large, well-established companies that have a strong market position and a proven track record of generating stable returns. The fund has a 5-star rating from Morningstar and has delivered a return of 25.12% over the past year.
- SBI Small Cap Fund
SBI Small Cap Fund is a mid-cap mutual fund that invests in small and mid-sized companies that have a high growth potential. The fund has delivered impressive returns over the past year, with a return of 58.62%. The fund has a 4-star rating from Morningstar and is an excellent option for investors who are willing to take on higher risk for potentially higher returns.
- Aditya Birla Sun Life Tax Relief 96
Aditya Birla Sun Life Tax Relief 96 is an equity-linked saving scheme (ELSS) that invests in a diversified portfolio of stocks. The fund has delivered a return of 37.67% over the past year and has a 5-star rating from Morningstar. The fund is an excellent option for investors who are looking to save tax while investing in equities.
- ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund is another large-cap mutual fund that has delivered consistent returns over the past few years. The fund invests in well-established companies that have a proven track record of generating stable returns. The fund has a 4-star rating from Morningstar and has delivered a return of 24.89% over the past year.
Mutual funds are an investment option that has become increasingly popular among retail investors in recent years. With a mutual fund, your money is pooled with that of other investors to create a diversified portfolio of stocks, bonds, or other assets. This diversification reduces risk and volatility, making mutual funds an excellent option for investors who are looking to build long-term wealth while minimizing risk.
When selecting a mutual fund, it’s important to consider several factors, including the fund’s investment objective, risk level, and historical performance. In this blog, we’ve highlighted some of the top-performing mutual funds in 2021 across various categories. However, it’s essential to keep in mind that past performance is not a guarantee of future results, and it’s always recommended to consult with a financial advisor before making any investment decisions.
Let’s take a closer look at each of the mutual funds we’ve mentioned.
- Mirae Asset Large Cap Fund
The Mirae Asset Large Cap Fund is a popular large-cap mutual fund that has a track record of delivering consistent returns over the long term. The fund invests in well-established companies that have a proven track record of generating sustainable profits, making it a relatively low-risk investment option. The fund has consistently outperformed its benchmark, delivering a return of 23.16% over the past year.
- Axis Bluechip Fund
The Axis Bluechip Fund is another large-cap mutual fund that has performed well in 2021. The fund invests in large, well-established companies that have a strong market position and a proven track record of generating stable returns. The fund has a 5-star rating from Morningstar, indicating its excellent historical performance. The fund has delivered a return of 25.12% over the past year, making it an attractive option for investors seeking stable, long-term returns.
- SBI Small Cap Fund
For investors seeking higher returns and willing to take on higher risk, the SBI Small Cap Fund is an excellent option. This mid-cap mutual fund invests in small and mid-sized companies that have a high growth potential. While this investment option is considered higher risk, it can potentially deliver higher returns over the long term. The SBI Small Cap Fund has delivered an impressive return of 58.62% over the past year.
- Aditya Birla Sun Life Tax Relief 96
The Aditya Birla Sun Life Tax Relief 96 is an equity-linked saving scheme (ELSS) that allows investors to save taxes while investing in equities. The fund invests in a diversified portfolio of stocks, reducing risk and volatility. The Aditya Birla Sun Life Tax Relief 96 has delivered a return of 37.67% over the past year, making it an attractive option for investors looking to build wealth while reducing their tax liability.
- ICICI Prudential Bluechip Fund
The ICICI Prudential Bluechip Fund is a large-cap mutual fund that has consistently delivered strong returns over the past few years. The fund invests in well-established companies that have a proven track record of generating stable returns, making it an excellent option for investors seeking long-term stability. The fund has delivered a return of 24.89% over the past year and has a 4-star rating from Morningstar.
Conclusion
In conclusion, mutual funds are an excellent investment option for investors seeking to build long-term wealth while reducing their risk. The above-mentioned top-performing mutual funds in 2021 are a great option to consider when building a diversified investment portfolio. However, it’s important to do your research and consult with a financial advisor before making any investment decisions.
Read more useful content:
- How to invest in mutual funds
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- All about mutual funds-types & importance
- The Power of SIP Investment in Mutual Funds
Frequently Asked Questions (FAQs)
What is a mutual fund?
A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a variety of assets such as stocks, bonds, and other securities.
How does a mutual fund work?
When you invest in a mutual fund, your money is combined with the money of other investors and is managed by a professional fund manager. The fund manager then invests the money in a diversified portfolio of assets.
What are the different types of mutual funds?
There are several types of mutual funds, including equity funds, debt funds, balanced funds, index funds, and sector-specific funds.
How do I select the right mutual fund?
When selecting a mutual fund, you should consider factors such as the fund’s investment objective, risk level, historical performance, and fees.
How do I invest in a mutual fund?
You can invest in a mutual fund by opening an account with a mutual fund company or a broker that offers mutual funds.
What are the fees associated with mutual funds?
Mutual funds typically charge an expense ratio, which is a percentage of the fund’s assets that is deducted annually to cover the fund’s operating expenses.
What is the difference between a load and no-load mutual fund?
A load mutual fund charges a sales commission when you buy or sell shares, while a no-load mutual fund does not charge a sales commission.
What is the minimum investment required for a mutual fund?
The minimum investment required for a mutual fund varies depending on the fund and the mutual fund company. Some mutual funds may require a minimum investment of as little as $50, while others may require thousands of dollars.
How often can I buy or sell shares in a mutual fund?
You can buy or sell shares in a mutual fund at any time, but the price of the shares is calculated at the end of each trading day.
What are the risks associated with investing in mutual funds?
Mutual funds are subject to market risks, including the risk of losing money due to fluctuations in the market. The value of the mutual fund can go up or down depending on the performance of the assets in the fund’s portfolio. Additionally, there is always the risk of poor fund management, which can result in lower returns.
