Best Mutual Funds To Invest In 2021

There are over 17,000 Mutual Fund scheme variations you can pick from. Confusing, right? Not anymore. The Cube Wealth app can simplify this by recommending the best mutual funds you can invest in every month.
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Get help from our wealth coaches to invest based on your goals and needs. Invest your hard-earned money in mutual fund schemes that work for you!

Types of Mutual Funds

Mutual funds are broadly classified into 5 types based on the securities they invest in and the benefits they offer:

Debt Mutual Funds
Equity Mutual Funds
Liquid Mutual Funds
Tax Saving Mutual Funds (ELSS)
International Mutual Funds

Best Debt Mutual Funds To Invest In 2021

Debt Mutual Funds invest in fixed-income securities such as government bonds, treasury bills, corporate bonds, etc.

Favored by conservative investors because of the low-risk and predictable returns on offer
Considered to be safer and less volatile than equity funds because the fund does not invest in equities
These funds have a relatively high liquidity

A list of the Best Debt Mutual Funds being recommended by our wealth advisor, Wealth First:

IDFC Banking & PSU Debt Fund
HDFC Ultra Short Term Fund
ICICI Prudential Corporate Bond Fund
Axis Banking and PSU Debt Fund
IDFC Ultra Short Term Fund

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Best Equity Mutual Funds To Invest In 2021

Equity Mutual Funds invest in shares of companies from across different caps (large-cap, mid-cap, small-cap, or multi-cap) or sectors.

Offer higher returns when compared to debt funds
Favorable for long term capital appreciation
Diverse range of scheme options
Are subject to market-based risks and fluctuations
‍Riskier and more volatile than debt funds

A list of the Best Equity Mutual Funds being recommended by our wealth advisor, Wealth First:

Kotak Equity Opportunities Fund
Kotak Emerging Equity Fund
Mirae Asset Large Cap Fund
Motilal Oswal Focused 25 Fund
Canara Robeco Emerging Equities Fund

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Best Liquid Mutual Funds To Invest In 2021

Liquid Mutual Funds are a type of debt funds which invest in Bonds, Treasury bills, Commercial paper, and other money market instruments. These funds are highly liquid.

Considered to be one of the best short term investments
Considerably low-risk and less prone to interest fluctuations
Withdrawals can be processed within 24 hours (or even 30 minutes)
Average portfolio maturity not more than 91 days

A list of the Best Liquid Mutual Funds being recommended by our wealth advisor, Wealth First:

Axis Liquid Fund
Principal Cash Management Fund
Nippon India Liquid Fund
Kotak Liquid Fund
Invesco India Liquid Fund

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Best Tax Saving Mutual Funds To Invest In 2021

Tax Saving Funds, commonly referred to as Equity Linked Savings Scheme (ELSS) Funds. Under Section 80C of the Income Tax Act, ELSS funds can help an investor save tax of up to ₹1,50,000 from their annual taxable income.

These funds invest primarily in Equity & Equity Related Instruments
Mandatory lock-in period of 3 years
Tax deduction benefits of up to ₹1,50,000

A list of the Best Tax Saving Mutual Funds being recommended by our wealth advisor, Wealth First:

Mirae Asset Tax Saver Fund
Kotak Tax Saver Fund

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Best International Mutual Funds To Invest In 2021

Investing in international mutual funds is also an option for Indian investors.

Option to invest like a global citizen
Geographical diversification
Can profit from market highs of other countries
Can benefit from the currency value of the given country
Returns affected by economic or political situations of the country

A list of the Best International Mutual Funds being recommended by our wealth advisor, Wealth First:

Edelweiss Greater China Equity Off-shore Fund
Franklin India Feeder - Franklin U.S. Opportunities Fund
Invesco Pan European Equity Fund
Nippon India Japan Equity Fund

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Comparing The Benefits Of Each Mutual Fund Type

Features	Debt Mutual Funds	Equity Mutual Funds	Liquid Mutual Funds	Tax Saving Mutual Funds	International Mutual Funds
Liquidity	Medium	Medium	High	Low	Medium
Returns	Low-Moderate	Moderate-Aggressive	Stable	Moderate	Moderate-Aggressive
Tax Benefits	Short Term Capital Gains according to Tax Slab Long Term Capital Gains 20% after indexation	Short Term Capital Gains 15% Long Term Capital Gains 10%	Short Term Capital Gains according to Tax Slab Long Term Capital Gains 20% after indexation	An exemption of up to ₹1,50,000	Short Term Capital Gains according to Tax Slab Long Term Capital Gains 20% after indexation

Features	Liquidity	Returns	Tax Benefits
Debt	Medium	Low-Moderate	STCG: Tax Slab LTCG: 20% after indexation
Equity	Medium	Moderate-High	STCG 15% LTCG 10%
Liquid	High	Stable	STCG: Tax Slab LTCG: 20% after indexation
Tax Saving	Low	Moderate	An exemption of up to ₹1,50,000
International	Medium	Moderate-High	STCG: Tax Slab LTCG: 20% after indexation

How Should You Choose Mutual Funds?

Since there are several factors to consider before investing in any mutual fund scheme, we recommend that you consult Cube’s wealth coaches to understand your risk profile and invest based on your goals & needs.
‍
Our wealth advisor, Wealth First, curates a list of the best mutual funds that you can invest in so that you can invest easily and think long term.
‍
Wealth First has an incredible track record of beating the average mutual fund by ~50% since 2002 with a team of wealth professionals with over 250 years of combined experience.

How Should You Choose Mutual Funds?

Since there are several factors to consider before investing in any mutual fund scheme, we recommend that you consult Cube’s wealth coaches to understand your risk profile and invest based on your goals & needs.
‍
Our wealth advisor, Wealth First, curates a list of the best mutual funds that you can invest in so that you can invest easily and think long term.
‍
Wealth First has an incredible 19-year track record of beating the average mutual fund by ~50% with a team of wealth professionals with over 250 years of combined experience.

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