6 Best Mutual Funds To Invest In 2021

Choosing the best Mutual Funds can be a challenging task in the presence of many options. Today we will tell you 6 Best Mutual Funds to invest in 2021 and Best Mutual Funds to invest long term in which you can invest.

Best Mutual Funds to invest in 2021 

Here we will now tell you the Top Mutual Funds to invest from different categories. From these categories, you can choose a mutual fund according to your need. You can also keep these funds in your portfolio for long term. Best Mutual Funds to invest long term.

Large Cap Fund

According to the new rules of SEBI, now Large Cap Funds will have to invest money only in companies with 100 largest market capitalization in the country. Large Cap Funds are less risky than other funds because of investing in large companies. In the Large Cap Fund category, we will tell you an Active Fund and a Passive Fund.

1. Axis Bluechip Fund

This mutual fund is a great mutual fund from Axis Fund House. Axis Bluechip Fund was launched on 5 January 2010. This mutual fund has an AUM of Rs 27,142 crore, which means that a lot of people are invested in this fund.

As on – 31- May – 2021

AUM – Rs 27,142 Cr.

Direct plan expenses ratio – 0.50%  (As on 31-May-2021)

Talking about the performance of this fund, this fund has given a return of 14.59% since its launch date. Which is fantastic according to a large cap fund.

From the table given above, you must have come to know that the past performance of this mutual fund has been excellent. The current fund manager of Axis Bluechip Fund is Shreyansh Dewalkar. In this fund, you can start with a minimum SIP of Rs 1,000 and a lump sum of Rs 5,000. This fund has been rated by CRISIL Rating Agency with 4 stars and Value Research by 5 stars.

2. HDFC Index Sensex Fund

This fund is a passive fund. This fund has become the Best Mutual Funds to invest due to the following reasons –

• In large cap funds, the value of index funds increases after the restrictions imposed in choosing stocks.
• There is a huge difference in the expense ratio of Large Cap Funds and Index Funds. Due to which you get more return in index fund.
• In Large Cap Funds, maximum 10% can be invested in a stock. There is no such restriction in Index Funds. Even if the fund manager is seeing a stock/share being undervalued, he can still invest a maximum of 10% in that stock in case of Large Cap Funds. Whereas in index funds, they can buy as many quantities as they want.
• Most of the Large Cap Funds have failed to outperform the market after the SEBI restrictions. Therefore, if you want, you can also take an index fund instead of a large cap fund.

HDFC Index Sensex Fund is currently being managed by Arun Agarwal and Krishan Kumar Daga. This fund is a very old fund which was launched in July 2002. Its regular plan has given a return of 14.02% from the launch date. In this fund you can start SIP with Rs 500. This fund has been rated 4 stars by Value Research and 3 stars by CRISIL.

As of – 31-May-2021

AUM – Rs 2210 Cr.

Direct plan expenses ratio – 0.20%

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Mid Cap Fund

According to the new rules of SEBI, investments can be made in Mid Cap Funds only from the 101 to the 250th company with the largest market capitalization in the country. That means, for Mid Cap Funds, the fund manager has to prepare the best portfolio in only 150 companies. Mid cap funds are also very popular for being able to deliver higher returns than large cap funds. But the risk in this is higher as compared to Large Cap Funds.

3. Axis Midcap Fund

Axis Midcap Fund has carved a niche for itself in this midcap category due to its excellent and consistent performance. This is a great fund to invest in Best Mutual Funds of 2021. This plan was launched in February 2011. Shreyansh Dewalkar is currently managing this mutual fund. This mid cap fund has given a return of 20.63% since launch.

As on – 31-May-2021

AUM – Rs 11,834 Cr.

Direct plan expenses ratio – 0.52%

From the above table, you must have got an idea that this fund has given excellent Annualized Return. It has higher returns as compared to large cap funds as it also carries more risk. Axis Midcap Fund has been rated 4 stars by CRISIL Rating Agency and 5 stars by Value Research. In this fund you can start SIP with Rs 500.

Flexi Cap Fund

Flexi cap category is the most popular category among investors. Before knowing this fund further, let us know the new rules of SEBI for Flexi Cap Fund.

The new category Flexi Cap Fund has been taken out on the lines of the old multi cap scheme. Flexi Cap Fund, as the name suggests, this category is free or flexible to choose its funds.

In the Flexi Cap Fund category, 65% of the allocation will be in Equity and Equity Oriented Funds. This 65% can be invested in large cap, mid cap or small cap as per the choice of the fund manager without any pre-determined limit. There is no fixed allocation rule like multi cap funds in Flexi Cap Fund.

Whereas in the multi cap category, the fund manager has limited options to allocate the fund in the desired categories. But we have brought for you a great Flexi cap fund which is Best Mutual Funds to invest in India.

4. Parag Parikh Flexi Cap Fund

This fund is known for its excellent stock picking in the Flexi Cap category. This fund has exposure to the Indian stocks as well as the foreign market stocks in its portfolio. Like Google, Facebook etc. Parag Parikh Flexi Cap Fund was launched in May 2013. This fund has given high returns with low risk.

As on – 31-May-2021

AUM – Rs 10,276 Cr.

Direct plan expenses ratio – 0.91%

In this fund you can start with a minimum SIP of Rs 1,000 or LumpSum. This fund has given a return of 17.09% since its launch date.

The consistent performance of this fund makes this fund the best choice in the flexi cap category. The fund managers of this fund are Rajeev Thakkar, Raj Mehta and Raunak Onkar. Value research has rated this fund with 5 stars. If your time horizon is 4 to 5 years then you can definitely invest in this fund.

Parag Parikh Long Term Equity Fund has been renamed as Parag Parikh Flexi Cap Fund.

Small Cap Fund

Small cap funds work with the concept of high risk high returns. Smallcaps invest their money in small and emerging companies.

5. Axis Small Cap Fund

Axis Small Cap Fund has made its place in this list due to giving good returns as compared to its competitors. The fund was launched in November 2013. The fund has given a return of 25.46% since its launch date. The expense ratio of this fund is 0.23% which is quite low. This means investors will get a higher share in the returns.

As on – 31-May-2021

AUM – Rs 5,435 Cr.

Direct plan expenses ratio – 0.44%

In the above table, you can see that in about 7.5 years, the investment of Rs 9.10 lakhs has become Rs 50.41 lakhs.

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Presently this fund is being managed by Anupam Tiwari. Axis Small Cap Fund has been rated 4 stars by Crisil and 5 stars by Value Research. SIP facility is available in this fund from Rs 500. Small cap funds can be quite risky especially when their AUM is high. In case of high AUM, the fund manager may have the problem of buying stocks with that money as one may face liquidity issues due to investing in smaller companies.

ELSS Fund

ELSS means Equity linked saving scheme. By investing in ELSS funds, you get an exemption of up to Rs 1,50,000 under section 80(c) of income tax. Investments made in these types of funds have a lock-in-period of 3 years.

6. Mirae Asset Tax Saver Fund

This fund has performed best in the ELSS category and is expected to do well going forward. Mirae Asset Tax Saver Fund was launched in December 2015. Since then this fund has given an annual return of 22.58%. The expense ratio of this fund is low as compared to other funds.

As on – 31-May-2021

AUM – Rs 7,940 Cr.

Direct plan expenses ratio – 0.48%

In this fund you can start with Rs 500. At present, the fund manager of Mirae Asset Tax Saver Fund is Nilesh Surana. This fund has been given a 5 star ranking by Crisil Rating Agency and Value Research.

Also read: Best Stocks To Buy India For Short Term (2-3 Years)

Conclusion

Creating wealth by saving is a very good habit. The younger you start investing in mutual funds, the better profit you will get. You can diversify your portfolio with the help of the above categories of mutual funds. And yes you should keep reviewing your portfolio from time to time.