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 2023 

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. 

There is no lock-in period, investors can withdraw whenever they wish to. These funds have the potential to generate higher returns than savings accounts. 

2. Debt mutual funds

Debt funds are also referred as Fixed Income Funds or Bond Funds. They invest in debt and money market instruments like treasury bills, corporate bonds, etc. Debt funds are safer than equity funds as they are relatively more stable and provide more liquidity. 

These are ideal for investors looking for higher returns but who are risk-averse. Here, the returns are not affected by the fluctuations in the market.

3. Conservative mutual funds

Conservative funds follow the hybrid way of investing. Around 75-90% of your investments are invested in debt securities and the rest in equity securities. They carry low risk with better returns.

The conservative fund is ideal for someone who is looking for the benefit of equity securities and stable returns from debt investments.

4. Moderate mutual funds

Moderate funds include equity funds that are safer than aggressive funds but riskier than conservative funds. These funds invest in debt and equity securities.

They carry an average risk level. 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. These funds invest in equity shares of fast-growing companies that have the potential to show exponential growth.

The investors invest based on their future predictions and calculated assumptions. These are ideal for investors who are willing to take high risk but also yield above average returns.

6. International mutual funds

Investing in an international mutual fund is like investing in any other mutual fund. International mutual funds invest in international companies like Tesla, Facebook, Google, etc. that are listed on international indices like the S&P 500, DJIA, etc.

Investing in an international mutual fund diversifies your portfolio and has the potential to generate higher returns. Before investing, always look at the other parameters like investment risks, transaction charges, taxes, brokerage fees, currency exchange rates, etc.

7. Tax Saving mutual funds

Tax-saving mutual funds, also known as Equity Linked Savings Scheme (ELSS) funds, come with a three-year lock-in period. ELSS funds offer tax benefits of up to ₹1,50,000 under section 80C of the Indian Income Tax Department.

The unlocked unit can only be redeemed at the current NAV value.

‍

Note: All facts and figures are updated as of 01/09/2022.

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 Around Mutual Funds Investment

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.

Q. How To Invest In Mutual Funds?

Ans. You can invest in these Mutual Funds through Cube.  

Q. Who Should Invest In Mutual Funds?

Ans. Anyone can invest in mutual funds. It does not matter if the amount is as small as ₹1000. Mutual funds give better returns than FDs and savings accounts.

Q. Are Mutual Funds A Safe Investment?

Ans. Every investment involves a certain degree of risk but also has the potential to generate higher income. Different types of mutual funds have different levels of risk involved. It is always advised to do your research and make decisions wisely.

Conclusion 

Whether you're seeking capital growth, regular income, or capital preservation, there are mutual funds tailored to your specific needs. Keep an eye on expense ratios and fees, as they can affect your overall returns. Additionally, monitoring your investments regularly and staying informed about market developments can help you make informed decisions and make the most of your investments in 2023. You can consult a Cube Wealth coach or download the Cube Wealth App.

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

Other Posts You May Like: