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What Are The Best Mutual Funds To Invest In For 2021?

Get a list of some of the best mutual funds for 2021 hand-picked by Cube’s MF Advisory partner Wealth First. Use the Cube Wealth app to invest in these top quality mutual funds and create wealth for your future.
December 3, 2020

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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. 

Luckily, we work with the best mutual fund advisor who recommends a curated list of funds for Cube users every month. 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, our Cube Wealth app 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 2021 

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.

Mutual Fund Name

3 Year Returns

5 Year Returns

Axis Liquid Fund

6.39%

6.75%

Kotak Liquid Fund

6.25%

6.66%

PGIM India Insta Cash Fund

6.38%

6.77%

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.

Mutual Fund Name

3 Year Returns

5 Year Returns

IDFC Banking & PSU Debt Fund

9.28%

8.47%

Axis Banking and PSU Debt Fund

9.02%

8.58%

HDFC Money Market Fund

7.52%

7.36%

3. Conservative mutual funds

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

Mutual Fund Name

3 Year Returns

5 Year Returns

Motilal Oswal Focused 25 Fund

4.56%

7.54%

Mirae Asset Large Cap Fund

5.39%

9.88%

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.

Mutual Fund Name

3 Year Returns

5 Year Returns

Invesco India Growth Opportunities Fund

5.46%

8.80%

Kotak Equity Opportunities Fund

4.33%

8.89%

SBI Magnum Multicap Fund

1.71%

7.64%

5. Aggressive mutual funds

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

Mutual Fund Name

3 Year Returns

5 Year Returns

Axis Small Cap Fund

8.96%

11.11%

PGIM India Midcap Opportunities Fund

6.62%

7.66%

Kotak Small Cap Fund

3.06%

8.61%

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.

Mutual Fund Name

3 Year Returns

5 Year Returns

Franklin India Feeder - Franklin U.S. Opportunities Fund

24.65%

18.16%

Edelweiss Greater China Equity Off-shore Fund

18.90%

18.63%

PGIM India Global Equity Opportunities Fund

27.24%

16.84%

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.

Mutual Fund Name

3 Year Returns

5 Year Returns

Mirae Asset Tax Saver Fund

7.62%

NA

Kotak Tax Saver Fund

4.49%

7.99%


Note: All facts and figures are updated as of 08/03/2021.

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 2021 right around the corner, you may want to think about adding wealth creation to your new year resolution. 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. 

Download Cube For Free now to know if you should invest in the best mutual funds for 2021.

Investment Facts
5 Easy Steps To Invest In Best Mutual Funds

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:

Equity

Debt

International

Liquid

Motilal Oswal Focused 25 Fund

IDFC Banking & PSU Debt Fund

Edelweiss Greater China Equity Off-shore Fund

Nippon India Liquid Fund

Mirae Asset Focused Fund

ICICI Prudential Corporate Bond Fund

Franklin India Feeder - Franklin U.S. Opportunities Fund

HDFC Liquid Fund

Axis Small Cap Fund

Axis Money Market Fund

PGIM India Global Equity Opportunities Fund

Axis Liquid Fund

Explore the full list of best long term mutual funds on Cube Wealth today.

Watch this video to know why you should invest using Cube


Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

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