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Top 20 Best Mutual Funds in India for 2021

All the financial mumbo-jumbo can leave you confused and hesitant. So we work with the world’s best wealth coaches and advisors to bring you a list of *drumrolls* The Top 20 Best Mutual Funds To Invest In India + some bonus tips.
August 25, 2020

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[Updated: July 2021]

You’ve more or less understood what mutual funds are, read up about the best investments available and asked at least 10 friends about what mutual funds to invest in.

All those friends insist that they know what the best mutual funds in India are and claim they’ve been getting good returns. Sadly your question remains unanswered… should you invest in the Axis Mutual Fund or the SBI Blue Chip? Are equity funds right for you or should you invest in debt funds?

All the financial mumbo-jumbo leaves you confused and hesitant. You know by now that you should start investing in mutual funds using SIPs but secretly wonder if you can time the market through lump sum investments.

After all that effort you really want to know what the top performing funds in India are. Well, you’re in luck because the Cube Wealth blog is the best place to get simple, honest and unbiased investment advice.

We work with the world’s best wealth coaches and advisors to bring you a list of *drumrolls* The Top 20 Best Mutual Funds To Invest In India + some bonus tips. Wealth First is our Mutual Fund Advisory partner and has helped us compile this crisp and precise list.

How Best Mutual Funds Are Compared?

This list is based on recommendations shared by our advisory partners, Wealth First. These mutual funds have delivered and will likely continue to deliver consistently higher returns than other funds in their category.

These funds are picked based on multiple factors, like consistent historical high returns & potential to continue delivering same results. Our world-class advisors at Wealth First helped build the list based on their mutual fund selection process, undertaken using two parameters:

Qualitative Parameters:

  • AMC comfort – Pedigree, Credibility, Compliance, Process and Ability to Retain Top Management & Talent
  • Fund Manager comfort – Experience, Reputation, Performance and Continuity Record (We have had 170+ investment and marketing team interactions in the last 1 year) 

Quantitative Parameters:

  • Scheme Aesthetics – Fund Size & Recent AUM Growth, Concentration Analysis, Clarity of positioning
  • Performance – Historical performances (SIP, Last 20-Quarters, 3-Year and 5-Year Numbers), Risk-adjusted returns, Sharpe, Beta, and Other Statistical Ratios
  • Negative Criteria – Cash Calls, Outlier Performances, Recent Management Changes, etc.

Now that you are well aware of the factors involved in picking the top performing mfs, without further ado, let’s dive into Cube Wealth’s picks.

List Of Best Mutual Funds Of May 2021

Let’s now dive into a list of current top recommendations of mutual funds to invest in. This is given by our advisors from Wealth First.

Best Liquid Mutual Funds In India In 2021

First, let’s look at the Liquid Funds that our wealth coaches have handpicked this year. These funds give higher returns than your average savings account, are short term investments and offer easy liquidity. We are sharing a list of 3 Mutual Funds in the liquid funds category for you.

List Of Best Liquid Mutual Funds 2021

1) Nippon India Liquid Fund

  • Risk: Low
  • 1-Year Returns: 3.42%
  • 3-Year Returns: 5.69%
  • 5-Year Returns: 6.21%
  • Cube ATM: Yes

2) SBI Liquid Fund

  • Risk: Low
  • 1-Year Returns: 3.38%
  • 3-Year Returns: 5.58%
  • 5-Year Returns: 6.09%

3) HDFC Liquid Fund

  • Risk: Low
  • 1-Year Returns: 3.28%
  • 3-Year Returns: 5.53%
  • 5-Year Returns: 6.05%

Best Debt Mutual Funds In India In 2021

The second category of funds on our list are debt funds. Debt funds are less volatile than equity funds and are also known as fixed-income funds.

List Of Best Debt Mutual Funds 2021

1) ICICI Prudential Corporate Bond Fund

  • Risk: Low
  • 1-Year Returns: 8.47%
  • 3-Year Returns: 8.51%
  • 5-Year Returns: 8.07%

2) IDFC Banking & PSU Debt Fund

  • Risk: Low
  • 1-Year Returns: 7.97%
  • 3-Year Returns: 9.40%
  • 5-Year Returns: 8.11%

3) HDFC Money Market Fund

  • Risk: Low
  • 1-Year Returns: 5.35%
  • 3-Year Returns: 7.01%
  • 5-Year Returns: 6.91%

Best Conservative Mutual Funds In India In 2021

The third category of mutual funds we will look into are conservative funds. These are mixed mutual funds which use a combination of stocks, funds and cash to maintain a low risk level. If you’re looking for a more balanced approach to mutual funds you should definitely look at these funds in 2020.

List Of Best Conservative Mutual Funds 2021

1) Motilal Oswal Focused 25 Fund

  • Risk: Moderate
  • 1-Year Returns: 47.11%
  • 3-Year Returns: 10.99%
  • 5-Year Returns: 14.04%

2) Mirae Asset Large Cap Fund

  • Risk: Moderate
  • 1-Year Returns: 53.23%
  • 3-Year Returns: 11.20%
  • 5-Year Returns: 14.91%

Best Moderate Risk Mutual Funds In India In 2021

Next, we should talk about moderate risk mutual funds. If you’re neither the conservative type nor someone who wants to invest in aggressive mutual funds, these funds will help you strike the right balance;

List Of Best Moderate Mutual Funds 2021  

1) Axis Focused 25 Fund

  • Risk: Moderately High
  • 1-Year Returns: 50.12%
  • 3-Year Returns: 11.08%
  • 5-Year Returns: 16.46%

2) SBI Flexicap Fund

  • Risk: Moderately High
  • 1-Year Returns: 55.98%
  • 3-Year Returns: 8.67%
  • 5-Year Returns: 12.99%

3) Invesco India Growth Opportunities Fund

  • Risk: Moderately High
  • 1-Year Returns: 48.27%
  • 3-Year Returns: 8.12%
  • 5-Year Returns: 13.73%

4) Principal Emerging Bluechip Fund

  • Risk: Moderately High
  • 1-Year Returns: 61.76%
  • 3-Year Returns: 8.85%
  • 5-Year Returns: 15.87%

Best Aggressive Mutual Funds In India In 2021

This brings us to the next set of funds to make it to our best mutual funds list: Aggressive Mutual Funds. If you’re looking for capital gains, have a solid risk appetite and the patience of an oak tree. These funds will tickle your money bone!

List Of Best Aggressive Mutual Funds 2021

1) Motilal Oswal Midcap 30 Fund

  • Risk: High
  • 1-Year Returns: 60.75%
  • 3-Year Returns: 6.60%
  • 5-Year Returns: 9.54%

2) Kotak Emerging Equity Fund

  • Risk: High
  • 1-Year Returns: 77.47%
  • 3-Year Returns: 11.44%
  • 5-Year Returns: 16.44%

3) ICICI Prudential Smallcap Fund

  • Risk: High
  • 1-Year Returns: 89.08%
  • 3-Year Returns: 7.55%
  • 5-Year Returns: 13.05%

Top ELSS Mutual Funds In India In 2021

Now, it’s impossible to talk about Mutual Funds and not mention tax saving funds. So if you’re trying to make the most of your 80C tax savings, you should look at the best Equity Linked Savings Schemes recommended by our wealth advisor.

These diversified equity schemes will help you make money while you save tax.

List Of Best Tax Saving ELSS Mutual Funds 2021

1) Kotak Tax Saver Fund

  • Risk: Moderately High
  • 1-Year Returns: 57.76%
  • 3-Year Returns: 12.49%
  • 5-Year Returns: 14.64%
  • Lock-in Period: 3 years

2) Mirae Asset Tax Saver Fund-Regular Plan

  • Risk: Moderately High
  • 1-Year Returns: 67.77%
  • 3-Year Returns: 15.18%
  • 5-Year Returns: 19.96%
  • Lock-in Period: 3 years

Best International Mutual Funds In India In 2021

Finally, we have a short list of the best international mutual funds in India. If you’d like to protect your investments from the rise and fall of the rupee, these are great options for you.

List Of Best International Mutual Funds 2021

1) Made in China: Edelweiss Greater China Equity Off-shore Fund-Regular Plan

  • Risk: High
  • 1-Year Returns: 60.78%
  • 3-Year Returns: 25.77%
  • 5-Year Returns: 24.60%

2) Americano: Franklin India Feeder – Franklin U.S. Opportunities Fund

  • Risk: High
  • 1-Year Returns: 49.34%
  • 3-Year Returns: 25.91%
  • 5-Year Returns: 22.09%

3) PGIM India Global Equity Opportunities Fund

  • Risk: High
  • 1-Year Returns: 64.57%
  • 3-Year Returns: 30.96%
  • 5-Year Returns: 20.90%

4) Cherry Blossom: Nippon India Japan Equity Fund

  • Risk: High
  • 1-Year Returns: 38.02%
  • 3-Year Returns: 10.08%
  • 5-Year Returns: 9.85%
Investment Facts

You can also go through our top recommendations for the best equity funds and the best debt funds to invest in. We always recommend to not pick mutual funds to invest in, on your own. See why, in this episode of The Cube Wealth Show –

Cube Wealth Investment Quotes

Earn as much as you can, save as much as you can, invest as much as you can, give as much as you can. - John Wesley

Other stories you may like

  1. 4 Crucial Tips For New Mutual Fund Investors
  2. The Types Of Mutual Funds You Can Invest In India
  3. Why You Need To Analyze Your Mutual Fund Portfolio
  4. Investing in Mutual Funds for Retirement
  5. How To Define Your Investment Goals
Rishabh P Nair
Rishabh P Nair is the Head Of Brand Content at Cube Wealth. Rishabh has been weaving stories for over 10 years and prides himself on building brands with a strong identity.

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