What Are The Best Mutual Funds To Invest In For 2022?

Investors are always looking for the best options for wealth creation. Mutual funds may fit this bill depending on your investment goals and risk profile. But nobody really tells you which mutual funds are the best out of the many choices available. 

This blog contains a snippet of the best funds currently being recommended by our mutual fund advisor, Wealth First.

What Are The Different Types Of Mutual Funds?

Mutual funds are categorized based on the securities they invest in, risk profile, maturity period, fund objective, and more. Here are the 7 broad types of mutual funds:

1. Money market funds

2. Fixed income funds

3. Equity funds

4. Balanced funds

5. Index funds

6. Specialty funds

7. Fund-of-funds

Click here to read a detailed blog on the types of mutual funds you can invest in India.

However, Cube simplifies things and shows you funds based on these easy to understand categories:

1. Liquid mutual funds

2. Debt mutual funds

3. Conservative mutual funds

4. Moderate mutual funds

5. Aggressive mutual funds

6. International mutual funds

7. Tax Saving mutual funds

Full List Of The Best Mutual Funds For 2022 

1. Liquid mutual funds

Liquid funds are open ended schemes that fall under the debt funds category. Liquid funds have an average portfolio maturity of 91 days. Liquid funds carry a low risk and offer high liquidity.

2. Debt mutual funds

Debt funds invest in debt and money market instruments like treasury bills, corporate bonds, etc. Debt funds are safer than equity funds.

3. Conservative mutual funds

Conservative funds include equity funds that carry a comparatively lower risk.

4. Moderate mutual funds

Moderate funds include equity funds that are safer than aggressive funds but riskier than conservative funds. However, moderate funds may give better returns than conservative funds.

5. Aggressive mutual funds

Aggressive funds include equity funds that are high risk high reward investments.

6. International mutual funds

International mutual funds invest in international companies like Tesla, Facebook, Google, etc. that are listed on international indices like the S&P 500.

7. Tax Saving mutual funds

Tax saving mutual funds or ELSS funds are equity funds that come with a 3 year lock-in period. ELSS funds offer tax benefits of up to ₹1,50,000 under section 80C.

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Note: All facts and figures are updated as of 01/11/2021.

While we update our pages regularly, we suggest you download the Cube Wealth app for the latest list of the best mutual funds.

Summary

With newer and newer wealth creation goals springing up every month, you may want to think about creating a solid investment plan. Investing in the right mutual funds today can lead to better returns tomorrow. Cube makes this possible by helping you invest in the best mutual funds in a simple and straightforward manner. 

FAQs

Q. Which MF gives highest return?

Ans. Equity funds are known to give the highest returns when it comes to mutual funds. The reason for this is simple: equity funds invest in shares of companies from varying market caps in India or foreign countries. Here's a look at equity funds with highest returns over the long term based on historical data:

1. International funds: 16-20%

2. Large cap funds: 14-16%

3. Mid cap funds: 9-18%

4. Small cap funds: 9-15%

5. ELSS funds: 14-16%

6. Flexi cap funds: 13-16%

You can invest in handpicked mutual funds that give highest returns on the Cube Wealth app.

Q. Which is the best mutual fund to invest for 15 years?

Ans. The best equity and debt funds have been known to give better returns than traditional investments like fixed deposits over the long term. Moreover, the Indian market has been seen to consistently grow over the past two decades with minor short term bumps along the way.

Here's a snippet of the best mutual funds for the long term currently being recommended by Cube's advisor, Wealth First:

Watch this video to know why you should invest using Cube