Best Mutual Funds in India | Types of Mutual Funds

Nowadays, one of the most common Ads that we all see in TV commercials is related to Mutual funds.

Those commercials are meant to establish mutual funds as the biggest and easiest instrument of making money from investment- And it is true to the core as well.

Investing in mutual funds will let you get high rates of interest on your investments.

Eventually, the return that you will receive is for sure going to be more in comparison to the returns offered by some of the most popular banks in India.

Currently, you can see that large numbers of companies offer mutual fund related schemes and we will go into the details of all those, but first, let us start by delving into different types of Mutual Funds in India in small and quick way-

Types of Mutual Funds

Best mutual funds in india

Debt funds

This type of Mutual Fund invests in fixed-income securities and opting for this one will let you invest money in some short-term bonds, securitized funds, and long-term bonds along with different money making instruments and floating rate debt

Equity funds

This one will allow you to invest money mainly in stocks and they deal with actively or passively managed funds with equal profitability

Equity-linked savings schemes

Choosing this one will allow you to invest in equity Mutual Fund that comes under the category of close-funded. You can opt for this one to save taxes, plus, empower yourself to grow your wealth. It will also help in tax deductions under Section 80C

Diversified funds

If you want to invest your money in numerous sectors or industries then this mutual fund is for you. It will help you spread investment in different industries of a variety of niche

Gilt funds

Gilt funds are known for allocating money to those to securities that Central or State Government offers and they do not have any default risk.

Index funds

If you want to invest as per the functioning of stock market then this one would be the best pick for you. NAV of Index fund varies as per the rise or fall in the index

Liquid Mutual Funds

This one offers investment plans that mainly assign your fund to the different money market instruments, for example, treasury bills, certificate of deposits alongside term deposits and commercial papers. Lower maturity period is comprised of these funds.

Debt-oriented hybrid funds

In this type, mainly your fund is invested in debt and then the part that is left will be invested in the equity. It properly integrates equity and debt investment

Arbitrage funds

Such sorts of mutual funds come into the category of equity plans for taxation purposes and they can be invested in derivatives as well as cash market

Dynamic bond funds

This type of mutual fund will allow you to invest your money in debt and money market instruments and it is also important here to know that maturity of such funds change as per the investments made

Therefore, I hope, you would have understood different varieties of mutual funds that are available for you.

Now, the next thing that you need to know is the most right mutual fund for you.

Since varieties of mutual funds are available in the market, you are having the incredible opportunity of going through different options and choosing the most profitable one.

In this post, we have compiled some of the best mutual funds in 2018 for you. This will guide you choose the right scheme for your investment.

Therefore, let us go through the best Mutual Funds in India  and their benefits-

10 Best Mutual Funds in India in 2018

Best mutual funds

Aditya Birla Sun Life Tax Relief 96

This mutual fund belongs to the Tax Saving ELSS Fund category. Such funds are gaining lots of popularity these days because they ensure better returns along with lower lock-in and minimum investments as well. It will help you save tax and it also gives you a chance to enjoy long-term capital appreciation. As one of best mutual funds in 2018, Aditya Birla Sun Life Tax Relief 96 is actually an Open-Ended fund that has a lock-in of 3 years. It was launched on March 06, 2008 & known for offering around 25.54 % returns from the day of its launch.

Mirae Asset India Opportunities Fund

 Mirae Asset belongs to Large Cap Fund categories that are offered by one of the most established companies in the equity market. It is in top 100 companies in the market & launched on April 04, 2008 and it is known for offering around 16.88% of returns from the day of its launch.

Mirae Asset Emerging Bluechip Fund

This mutual fund belongs to Mid Cap Fund category. In mid-cap funds, the mutual fund will invest in the stocks of midsize companies, you can understand mid-cap as those companies of the equity market, which are compact and fall in between large and small cap companies. Mirae Asset Emerging Bluechip Fund was launched on July 9, 2010, and it is reputed for offering around 23.40% returns since its launch.

HDFC Small Cap Fund

Related to Small Cap Fund category, such mutual funds are known for letting managers invest a major part of the money of investor in the stocks of small cap companies.  These funds are mainly associated with the small companies of the stock market. HDFC Small Cap fund is actually a Small Cap Equity Oriented Mutual Fund that was launched on April 03, 2008. HDFC Small Cap Fund one is known for having high risk but it has been offering 16.60 % returns since its launch.

Motilal Oswal Most Focused Multicap 35 Funds

It belongs to the Multi-Cap Cap Fund and it reduces the risk. Multi-cap funds are known for diversifying the investment. In all such mutual funds, your capital will be invested in different companies. Motilal Oswal Most Focused Multicap 35 Fund is a Multi-Cap Equity Oriented Mutual Fund. Motilal Oswal Most Focused Multicap 35 Funds one was launched on April 28, 2014. It is popular for offering around 28.83% returns.

Sundaram Rural India Fund

This one belongs to the Sector Fund in which mutual fund invests in stocks of different companies that are related to any specific sector or industry. Sundaram Rural India Fund was launched on May 12, 2006, and it has been offering 12.62% returns since then.

ICICI Prudential Nifty Next 50 Index Fund 

It is related to Index Fund that is known for passively tracking the outcomes of any specific index. ICICI Prudential Nifty Next 50 Index Fund was launched on June 25, 2010, and it has offers 12.65% returns since then.

L&T Short Term Income Fund

This one is related to Debt Fund that is tax efficient and also offers higher ROI. L&T Short Term Income Fund is one of the best mutual funds in 2018 that was launched on December 04, 2010. As a low-risk fund, it has been offering 8.89% returns from the day of its launch.

ICICI Prudential Balanced Advantage Fund 

It is associated with the Balanced Fund in which any Asset Management Company invests in equity and debt both. It ensures the most immaculate balance in between ROI and risk. ICICI Prudential Balanced Advantage Fund is actually a Hybrid Equity Oriented Mutual Fund. This one was launched on December 30, 2006, and since then; it has been offering 11.23% returns.

SBI Gold Fund

As the name suggests, this one belongs to Gold Fund that is considered the top-notch alternative to purchasing gold to make investments. Such mutual funds invest in Gold ETFs. SBI Gold Fund is one of the best mutual funds in 2018 and it was launched on Sep 12, 2011. This one is known for comprising high risk and since its launch.

Over to You…

Now, the time has come to conclude this post and I hope you would be finding yourself ready to invest in best mutual funds in 2018.

If you want to know more about how you should invest in mutual funds to make more profits then feel free to ask our experts.

What mutual funds you prefer, share your thoughts in comments below.


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