Best Mutual Funds to Invest in 2021

FundsIndia's Select Funds is a list of mutual funds that we think are most investment worthy for a regular investor. These funds have been selected in a completely unbiased manner taking into account various factors - both quantitative measures and qualitative assessments. Funds showcased here are those that are consistently top quartile performers in their categories. Different time and assessment criteria were used for debt and equity funds. However, they have all delivered superior risk adjusted rolling returns beating their benchmarks while keeping within their investment mandates.


List of funds moved from 'Buy' to 'Hold'

Equity funds - Growth at Reasonable Price

An investment strategy that combines tenets of both Quality and Value style of investing by finding companies that show consistent earnings growth but don't sell at overly high valuations. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Parag Parikh Flexi Cap Fund-Reg(G) 48.54 % 28.89 % 22.55 %
Mirae Asset Emerging Bluechip-Reg(G) 44.31 % 24.65 % 21.13 %
Kotak Flexicap Fund(G) 28.62 % 15.45 % 14.84 %
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Equity funds - Quality

Investing in firms that have strong fundamental qualities such as high earnings growth, high return on capital, low debt etc. Given the higher quality profile of companies, usually the valuations are on the higher side. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Axis Focused 25 Fund-Reg(G) 33.31 % 20.16 % 19.60 %
DSP Quant Fund-Reg(G) 31.42 % N/A N/A
Axis Bluechip Fund-Reg(G) 28.85 % 19.32 % 19.34 %
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Equity funds - Value / Contrarian

Investing in good businesss available at an attractive valuation (mostly happens when a company is going through a temporary difficult period or is out of favor). These funds take contrarian calls in sectors, themes, stocks which are not in favor. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
ICICI Pru Value Discovery Fund(G) 46.21 % 19.07 % 14.30 %
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Equity funds - Mid / Smallcap

Funds that invest in mid / small cap stocks. These funds have higher return potential but also come with higher short term volatility. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Axis Midcap Fund-Reg(G) 44.16 % 25.77 % 22.60 %
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Equity funds - Global

Global funds provide geographical diversification through exposure in global companies and markets. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Motilal Oswal Nasdaq 100 FOF-Reg(G) 33.10 % 36.31 % N/A
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Equity funds - Index

Index funds track the underlying index. Suitable for investors who prefer passive management style. Minimum timeframe: 5 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
ICICI Pru Nifty Next 50 Index Fund(G) 37.09 % 14.47 % 13.53 %
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Tax-saving funds - ELSS

Equity-oriented funds with a lock-in of three years. Qualifies for deduction upto Rs 1.5 lakh under Section 80C of the Income Tax Act, in the year of investment.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Axis Long Term Equity Fund-Reg(G) 33.01 % 20.01 % 18.63 %
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Equity funds - Tactical

Suitable for investors with high risk appetite and willing to actively monitor the fund and its underlying theme. Both the timing of entry and exit remains critical for this category. These funds should not account for more than 5-10% of the portfolio.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Nippon India Pharma Fund(G) 27.73 % 25.70 % 16.07 %
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Hybrid / Dynamic Asset Allocation funds - Equity Oriented

Dynamic Asset Allocation Funds auto-adjust equity exposure based on market conditions. Hybrid Equity Funds usually maintain around 70% Equity:30% Debt allocation. Both these categories seek to contain downsides better than pure equity funds and provide returns comparable to equity funds over a full market cycle. Minimum timeframe: 3 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
ICICI Pru Balanced Advantage Fund(G) 18.45 % 12.64 % 11.23 %
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Debt funds - Near term (below 1 year)

High Quality Debt Funds - for investors with time frame of less than 1 year.
Low risk: Almost the entire portfolio is invested in AAA & Equivalent papers.

Low risk
Almost the entire portfolio is invested in AAA & Equivalent papers.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Kotak Money Market Fund(G) 3.63 % 5.93 % 6.38 %
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Moderate risk
More than 80% of the portoflio is invested in AAA & Equivalent papers. The non-AAA portion is predominantly invested in well-known companies and helps in improving the overall return profile.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
ICICI Pru Savings Fund(G) 4.37 % 7.27 % 7.09 %
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Debt funds - Short to Medium term (above 1 year)

High Quality Debt Funds - for investors with time frame of more than 1 year.
Low risk: Almost the entire portfolio is invested in AAA & Equivalent papers.

Low risk
Almost the entire portfolio is invested in AAA & Equivalent papers.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
Axis Banking & PSU Debt Fund-Reg(G) 3.33 % 8.06 % 7.60 %
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Moderate risk
More than 80% of the portfolio is invested in AAA & Equivalent papers. The non-AAA portion is predominantly invested in well-known companies and helps in improving the overall return profile.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
HDFC Short Term Debt Fund(G) 4.20 % 8.39 % 7.58 %
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Hybrid funds - Debt Oriented

Funds with around 60-80% of the portfolio invested in debt and the rest in equity. The category seeks to generate slightly higher returns over pure debt funds. Minimum timeframe: 3 years.

SCHEME NAME FUNDSINDIA RATING 1 YEAR 3 YEARS 5 YEARS
ICICI Pru Equity Savings Fund(G) 11.87 % 8.33 % 7.42 %
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*FundsIndia's Research team has, to the best of its ability, taken into account various factors - both quantitative measures and qualitative assessments, in an unbiased manner, while choosing the fund(s) mentioned above. However, they carry unknown risks and uncertainties linked to broad markets, as well as analysts' expectations about future events. They should not, therefore, be the sole basis of investment decisions. The recommendations and reviews do not guarantee fund performance, nor should they be viewed as an assessment of a fund's, or the fund's underlying securities' creditworthiness. Mutual fund investments are subject to market risks. Please read the scheme information and other related documents before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs. Wealth India Financial Services Pvt. Ltd. (with SEBI Reg. No. INZ000241638 | ARN code 69583) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.