Mutual funds are professionally managed fund, which pools investment from several investors to invest in capital assets.
Mutual funds work by pooling your money with the money of other investors and investing it in a portfolio of other assets (e.g., stocks, bonds)... Mutual funds are typically managed by a fund manager, who picks all the investments in the portfolio.
Show Return For Comparing returns for ₹ 1,00,000 invested 5 year(s) back
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | Franklin India Feeder - Franklin U.S. Opportunities Fund Growth | 12.95% 13.48% 15.94% | 5Yr 9Mn 6Yr 4Mn 6Yr 4Mn | ₹1.84L ₹1.13L ₹1.56L |
| 2 | Axis Bluechip Fund Growth | 10.60% 17.34% 16.44% | 6Yr 11Mn 7Yr 11Mn 7Yr 11Mn | ₹1.66L ₹1.17L ₹1.58L |
| 3 | Mirae Asset Emerging Bluechip Growth | 15.00% 11.83% 11.21% | 5Yr 0Mn 5Yr 8Mn 5Yr 8Mn | ₹2.01L ₹1.12L ₹1.38L |
| 4 | ICICI Prudential US Bluechip Equity Fund Growth | 12.76% 9.67% 12.49% | 5Yr 10Mn 6Yr 5Mn 6Yr 5Mn | ₹1.82L ₹1.1L ₹1.42L |
| 5 | Axis Focused 25 Fund Growth | 11.85% 17.69% 14.56% | 6Yr 3Mn 7Yr 2Mn 7Yr 2Mn | ₹1.75L ₹1.18L ₹1.5L |
| 6 | Parag Parikh Long Term Equity Regular Growth | 11.13% 7.60% 10.36% | 6Yr 7Mn 7Yr 9Mn 7Yr 9Mn | ₹1.69L ₹1.08L ₹1.34L |
| 7 | Axis Small Cap Fund Regular Growth | 12.51% 29.43% 14.26% | 5Yr 11Mn 6Yr 3Mn 6Yr 3Mn | ₹1.8L ₹1.29L ₹1.49L |
| 8 | SBI Focused Equity Fund Growth | 11.81% 17.93% 14.13% | 6Yr 3Mn 6Yr 11Mn 6Yr 11Mn | ₹1.75L ₹1.18L ₹1.49L |
| 9 | Axis Midcap Growth | 10.82% 15.69% 15.50% | 6Yr 9Mn 7Yr 7Mn 7Yr 7Mn | ₹1.67L ₹1.16L ₹1.54L |
| 10 | Aditya Birla Sun Life India GenNext Fund Growth | 11.75% 14.44% 11.53% | 6Yr 3Mn 7Yr 3Mn 7Yr 3Mn | ₹1.74L ₹1.14L% ₹1.39L |
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | SBI Magnum Constant Maturity Fund Regular Growth | 10.16% | 7Yr 2Mn | ₹1.62L |
| 2 | Axis Banking & PSU Debt Fund Growth | 9.37% | 7Yr 9Mn | ₹1.56L |
| 3 | Kotak Dynamic Bond Growth | 9.93% | 7Yr 4Mn | ₹1.61L |
| 4 | Aditya Birla Sun Life Corporate Bond Fund Regular Plan Growth | 8.42% | 8Yr 7Mn | ₹1.5L |
| 5 | Kotak Banking and PSU Debt Growth | 8.28% | 8Yr 9Mn | ₹1.49L |
| 6 | HDFC Corporate Bond Growth | 7.59% | 9Yr 6Mn | ₹1.44L |
| 7 | Franklin India Banking & PSU Debt Fund Growth | 7.39% | 9Yr 9Mn | ₹1.43L |
| 8 | HDFC Short Term Debt Growth | 7.59% | 9Yr 6Mn | ₹1.44L |
| 9 | Aditya Birla Sun Life Banking & PSU Debt Fund Growth Regular Plan | 7.40% | 9Yr 9Mn | ₹1.43L |
| 10 | Franklin India Corporate Debt - Plan A - Growth | 8.80% | 8Yr 3Mn | ₹1.52L |
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | Axis Long Term Equity Growth | 10.55% | 6Yr 11Mn | ₹1.65L |
| 2 | Motilal Oswal Long Term Equity Fund - Regular Plan - Growth | 12.97% | 5Yr 9Mn | ₹1.84L |
| 3 | Canara Robeco Equity Taxsaver Growth | 8.91% | 8Yr 2Mn | ₹1.53L |
| 4 | Invesco India Tax Plan - Growth | 9.29% | 7Yr 10Mn | ₹1.56L |
| 5 | Tata India Tax Savings Fund Regular Growth | 10.11% | 7Yr 3Mn | ₹1.62L |
| 6 | DSP Tax Saver Fund Growth | 9.92% | 7Yr 4Mn | ₹1.6L |
| 7 | Kotak Taxsaver Fund Growth | 8.74% | 8Yr 4Mn | ₹1.52L |
| 8 | BNP Paribas Long Term Equity Fund Growth | 7.49% | 9Yr 8Mn | ₹1.43L |
| 9 | Aditya Birla Sun Life Tax Relief 96 Growth | 8.48% | 8Yr 7Mn | ₹1.5L |
| 10 | L&T Tax Advantage Fund Growth | 8.18% | 8Yr 10Mn | ₹1.48L |
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | ICICI Prudential Savings Fund Growth | 8.21% | 8Yr 10Mn | ₹1.48L |
| 2 | Aditya Birla Sun Life Floating Rate Fund Regular Plan Growth | 8.30% | 8Yr 9Mn | ₹1.49L |
| 3 | Nippon India Floating Rate Fund Growth | 7.75% | 9Yr 4Mn | ₹1.45L |
| 4 | Aditya Birla Sun Life Savings Fund Growth Regular Plan | 8.25% | 8Yr 9Mn | ₹1.49L |
| 5 | HDFC Floating Rate Debt - Wholesale Plan - Growth | 8.07% | 9Yr 0Mn | ₹1.47L |
| 6 | DSP Tax Saver Fund Growth | 9.92% | 7Yr 4Mn | ₹1.6L |
| 7 | Invesco India Treasury Advantage Fund - Growth | 7.81% | 9Yr 3Mn | ₹1.46L |
| 8 | ICICI Prudential Ultra Short Term Fund Growth | 8.31% | 8Yr 9Mn | ₹1.49L |
| 9 | IDFC Low Duration Fund Regular Plan Growth | 8.00% | 9Yr 1Mn | ₹1.47L |
| 10 | ICICI Prudential Floating Interest Fund Growth | 7.80% | 9Yr 3Mn | ₹1.46L |
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | SBI Equity Hybrid Fund Regular Growth | 9.41% | 7Yr 9Mn | ₹1.57L |
| 2 | Canara Robeco Equity Hybrid Fund Growth | 9.37% | 7Yr 9Mn | ₹1.56L |
| 3 | DSP Equity & Bond Fund Growth | 9.93% | 7Yr 4Mn | ₹1.61L |
| 4 | ICICI Prudential Balanced Advantage Fund Growth | 8.42% | 8Yr 7Mn | ₹1.5L |
| 5 | Sundaram Equity Hybrid Fund Growth | 8.28% | 8Yr 9Mn | ₹1.49L |
| 6 | Axis Triple Advantage Growth | 7.59% | 9Yr 6Mn | ₹1.44L |
| 7 | Kotak Equity Savings Fund Regular Growth | 7.39% | 9Yr 9Mn | ₹1.43L |
| 8 | ICICI Prudential Equity Savings Fund Growth | 7.59% | 9Yr 6Mn | ₹1.44L |
| 9 | DSP Dynamic Asset Allocation Fund Regular Growth | 7.40% | 9Yr 9Mn | ₹1.43L |
| 10 | Principal Hybrid Equity Fund Growth | 8.80% | 8Yr 3Mn | ₹1.52L |
| Rank | Fund Name | Return | Doubled In | Rs. 1L Grew to |
|---|---|---|---|---|
| 1 | ICICI Prudential Regular Savings Fund Growth | 8.71% | 8Yr 4Mn | ₹1.52L |
| 2 | ICICI Prudential Asset Allocator Fund(FOF) Growth | 8.73% | 8Yr 4Mn | ₹1.52L |
| 3 | BNP Paribas Conservative Hybrid Fund Regular Plan Growth | 6.78% | 10Yr 7Mn | ₹1.39L |
| 4 | Franklin India Debt Hybrid Growth | 6.83% | 10Yr 6Mn | ₹1.39L |
| 5 | SBI Debt Hybrid Fund Regular Growth | 7.17% | 10Yr 1Mn | ₹1.41L |
| 6 | Franklin India Dynamic Asst Allo Fund Of Funds Growth | 6.65% | 10Yr 10Mn | ₹1.38L |
| 7 | HDFC Hybrid Debt Growth | 6.75% | 10Yr 8Mn | ₹1.39L |
| 8 | Aditya Birla Sun Life Regular Savings Fund Regular Plan Growth | 6.77% | 10Yr 7Mn | ₹1.39L |
| 9 | UTI Regular Savings Fund Regluar Plan Growth | 5.73% | 12Yr 6Mn | ₹1.32L |
| 10 | Nippon India Hybrid Bond Fund Growth | 4.16% | 17Yr 0Mn | ₹1.23L |
KEY TAKEAWAYS
A money market mutual fund (MMF) is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents.
Though not exactly as safe as cash, money market funds are considered extremely low-risk on the investment spectrum, and thus carry close to the risk-free rate of return.
A money market fund generates income (taxable or tax-free, depending on its portfolio), but little capital appreciation.
Money market funds invest in a variety of similar instruments, while money market accounts exist in a single offering that is held at a bank or credit union and insured by the FDIC.
Purpose of Money Market Mutual Funds for Investors
Money market mutual funds offer a convenient parking place for cash reserves when an investor is not quite ready to make an investment or is anticipating a near-term cash outlay for a non-investment purpose. Money market mutual funds offer ultimate safety and liquidity. This means that investors will have an expected sum of cash at the very moment that they need it.
An investor holding a basket of mutual funds from a single fund company may occasionally want to transfer assets from one fund to another. If, however, the investor wants to sell a fund before deciding on another fund to purchase, a money market mutual fund offered by the same fund company may be a good place to park the sale proceeds. Then, at the appropriate time, the investor may exchange his or her money market mutual fund holdings for shares of the other funds in the fund family.
To benefit their clients, brokerage firms regularly use money market mutual funds to provide cash management services. Putting a client's dormant cash into money market mutual funds will earn the client an extra percentage point (or two) in annual returns above those earned by other possible investments.
KEY TAKEAWAYS
Fixed income is a type of security that pays investors fixed interest payments until its maturity date.
At maturity, investors are repaid the principal amount they had invested.
Government and corporate bonds are the most common types of fixed-income products.
In the event of a company's bankruptcy, fixed-income investors are paid before common stockholders.
Features of Fixed Income Funds
Fixed income funds are focused not on capital appreciation but on remitting a fixed income to the fund-holder.
This kind of mutual fund is good for investors who are looking for a steady source of returns rather than increasing the value of their investment, such as retired persons and those with a low risk appetite.
Fixed income funds are actively managed. In order to manage the growth or depreciation of returns based on interest rate and economic changes, fund managers have to shuffle the portfolio regularly.
Fixed income funds aims at maintaining stable returns in spite of market upheavals or changes in economic situations.
These funds are highly liquid in nature, allowing the investor to withdraw or redeem their funds whenever they require money.
Debt funds provide better long-term returns than money-market funds or CDs, but ETFs are more profitable as they function quite like equity funds.
The taxes applicable to fixed income funds are those of debt funds. This means that any short-term capital gains are added to your income and taxed as per the slab rate, while long-term capital gains attract 10% tax without indexation and 20% tax with indexation.
How do Equity Funds work?
Equity mutual funds invest at least 60% of their assets in equity shares of numerous companies in suitable proportions. The asset allocation will be in line with the investment objective. The asset allocation can be made purely in stocks of large-cap, mid-cap, or small-cap companies, depending on the market conditions. The investing style may be value-oriented or growth-oriented. After allocating a significant portion towards the equity segment, the remaining amount may go into debt and money market instruments. This is to take care of sudden redemption requests as well as bring down the risk level to some extent. The fund manager makes buying or selling decisions to take advantage of the changing market movements and reap maximum returns.
Who should Invest in Equity Funds?
Your decision to invest in equity funds must be in sync with your risk profile, investment horizon, and objectives. Generally, if you have a long-term goal (say, five years or more), then it is better to invest in equity funds. It will also give the fund much needed time to combat market fluctuations.
a. For budding investors
If you are an aspiring investor who wants to have exposure to the stock market, then large-cap equity funds may be the right choice. These funds invest in equity shares of the top-performing companies whose risk level is low. The well-established companies have historically delivered stable returns over a long period.
b. For market savvy investors
If you are well-versed with the market pulse and willing to take calculated risks, then you may think of investing in diversified equity funds. These invest in shares of companies across all market capitalisations. These funds provide an excellent combination of high returns at lower risk as compared to equity funds that only invest in small-cap/mid-caps.
Benefits of Investing in Equity Funds
The benefits of investing in mutual funds are
Expert money management
Low Cost
Convenience
Diversification
Systematic investments
Flexibility
Liquidity
The primary benefit of investing in equity funds is that you don’t need to worry about choosing stocks and sectors to invest. Successful equity investing requires a lot of research and knowledge. You need to understand and analyse the performance of a company before you decide to invest. You also need to have an understanding of how a particular sector is expected to perform in the future. Of course, all of this requires a lot of time and effort, which most individuals don’t have. Hence, the solution is to leave the stock-picking to an expert fund manager by investing in an equity mutual fund.
KEY TAKEAWAYS
A balanced fund combines equity stock component, a bond component and sometimes a money market component in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate, or higher equity, component, or conservative, or higher fixed-income, component orientation
These funds invest in a mix of equities and debt, giving the investor the best of both worlds. Balanced funds gain from a healthy dose of equities but the debt portion fortifies them against any downturn.
Balanced funds are suitable for a medium-term horizon and are ideal for investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts this type of mutual fund invests into each asset class usually must remain within a set minimum and maximum.
Although they are in the "asset allocation" family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-date and actively managed asset-allocation funds, which make changes in response to an investor's changing risk-return appetite and age or overall investment market conditions.
EQUITIES AND INFLATION
Investors who have dual investment objectives favour Balanced Funds. Typically, retirees or investors with low risk tolerance prefer these funds for growth that outpaces inflation and income that supplements current needs. While retirees generally scale back risk as age advances, many individuals recognize the need for equity exposure as life expectancies increase. Equities prevent erosion of purchasing power and help ensure long-term preservation of retirement corpus
INCOME NEEDS
The bond component of a balanced fund serves two purposes: creating an income stream and moderating portfolio volatility. Investment-grade bonds such as AAA corporate bonds and Money market instruments interest income from periodic payments, while large-company stocks offer dividend payouts to enhance yield. Retired investors may take distributions in cash to bolster income from pensions and personal savings.
Secondarily, bonds hold much less volatility than stocks. Bondholders have a claim against assets of a company while stocks represent ownership, bearing all inherent risk if bankruptcy occurs. Hence, debt security prices do not move in lockstep with equities, and their stability prevents wild swings in the share price of a balanced fund.
TAXATION
Equity-oriented Balanced funds have a larger portion of their corpus (at least 65%) invested in stocks and qualify for the same tax treatment as equity funds. This means any capital gains are tax-free, if the investment is held for more than one year. However, these funds are more volatile due to the higher allocation to stocks.
Debt-oriented balanced funds are less volatile and suit those with a lower risk appetite. However, they offer lower returns and the gains are not eligible for tax exemption. If the investment is held for less than three years, the capital gains are treated as short term and taxed at the normal rates. But if the holding period exceeds three years, the gains are considered as long term and are taxed at 20% after indexation benefit, which can significantly reduce the tax.
KEY TAKEAWAYS
An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index.
Index funds have lower expenses and fees than actively managed funds.
Index funds follow a passive investment strategy.
Index funds seek to match the risk and return of the market, on the theory that long-term, the market will outperform any single investmentthe market will outperform any single investment
What Is a Fund Of Funds (FOF)?
A fund of funds (FOF)—also known as a multi-manager investment—is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing directly in bonds, stocks, and other types of securities.
KEY TAKEAWAYS
A fund of funds (FOF) is a pooled fund that invests in other funds.
FOFs usually invests in other hedge funds or mutual funds.
The fund of funds (FOF) strategy aims to achieve broad diversification and minimal risk.
Funds of funds tend to have higher expense ratios than regular mutual funds.
Fund of Funds Advantages
Typically, FOFs attract small investors who want to get better exposure with fewer risks compared to directly investing in securities—or even in individual funds. Investing in a FOF gives the investor professional wealth management services and expertise.
Investing in a FOF also allows investors with limited capital to tap into diversified portfolios with different underlying assets. Many of these would be out-of-reach for the average retail investor
KEY TAKEAWAYS
A debt mutual fund (also known as a fixed-income fund) invests a significant portion of your money in fixed-income securities like government securities, debentures, corporate bonds and other money-market instruments.
Portfolio Management Services are offered to high net worth Individuals who wish to opt for personalized management of their finances. The term portfolio means the basket of asset classes such as equity, commodities, cash, etc. Portfolio management is managing appropriate combination of securities to generate optimum return and reducing risk through proper diversification. Unlike Mutual Funds, The ownership of securities lies with the investor and actively managed by professional manager. It is a customized investment product based on client needs and objectives.
Discretionary Portfolio management services : The investment in discretionary portfolio management is at discretion of the fund manager & client has no intervention in the investment process. Client gives the authority to portfolio manager to manage the securities in the portfolio.
Non-Discretionary Portfolio management services : In non discretionary portfolio management services, the portfolio manager can only suggest the investment ideas to client, but the client has full right to take his own decisions.
Active Portfolio Management : Active management (also called active investing) refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index or target return.
Passive Portfolio Management : Passive management, also referred to as index fund management, involves the creation of a portfolio intended to track the returns of a particular market index or benchmark as closely as possible. Managers select stocks and other securities listed on an index and apply the same weighting.