There is a wide range of funds to choose from when it comes to mutual funds in India. Below is a list of potential mutual funds for 2021 which can turn out to be a good investment for SIP and lumpsum investing. Please note, do read the disclaimer at the end of the article to avoid any uncertainties.
- Axis Bluechip Fund Direct Plan-Dividend
- Axis Bluechip Fund Direct Plan-Growth
- Canara Robeco Bluechip Equity Fund Direct-Growth
- Canara Robeco Bluechip Equity Fund Direct-Dividend
- Axis Bluechip Fund-Dividend
- Axis Midcap Direct Plan-Dividend
- PGIM India Midcap Opportunities Fund Direct-Growth
- Kotak Small Cap Fund Direct-Growth
- Mirae Asset Emerging Bluechip Fund Direct-Dividend
- UTI Equity Fund Direct-Dividend
Below is a list of large and mid-cap mutual funds which performed well in 2020 and might be good for consideration for 2021 as well.
| Mirae Asset Emerging Bluechip-Reg(G) |
| Principal Emerging Bluechip Fund(G) |
| Canara Rob Emerg Equities Fund-Reg(G) |
| Sundaram Large and Mid Cap Fund(G) |
| DSPBR Equity Opportunities Fund-Reg(G) |
| IDFC Core Equity Fund-Reg(G) |
| Aditya Birla SL Equity Advantage Fund(G) |
| Invesco India Growth Opp Fund(G) |
| ICICI Pru Large & Mid Cap Fund(G) |
What are Mutual Funds ?
Mutual Funds is when investors/people pool funds to buy certain units which hold some value based on the underlying assets/securities in the market.
Fund managers of the AMCs manage these units. Simply saying, mutual funds put your money in bonds, stocks, and other comparable securities (As per the mutual fund details).
Mutual fund investors are alloted with units relating to their quantum of invested fund. Mutual fund unit holders are permitted to buy or sell these units at the current NAV (Net Asset Value= Price per unit) as per their wish.The NAV of units changes day by day according to their equivalent holdings in stocks, bonds etc.
Mutual funds are monitored and governed by the Securities and Exchange Board of India (SEBI), and thus, can be considered as a secured investment option (Very less chance to be scammed/fooled). A major benefit of going for mutual funds is that investors can diversify their portfolio and reduce their risk.
What is SIP of mutual funds ?
SIP is a planned investment approach; it is an approach to put your investment into mutual fund scheme based on a schedule of frequent intervals e.g per month, per quarter. A SIP is a systematic method to contribute where a predetermined sum of money is invested on a monthly basis, deducted your bank account and put into the mutual fund scheme you choose which eventually put it into an asset class such as equity, bond, etc. based on the mutual fund scheme selected. It can be week by week, month to month. Few mutual fund schemes even permit quarterly SIP.
SIP helps to create discipline and reduces the requirement of lots of funds at once. SIPs is generally appropriate for individuals who are looking to invest small, probably a chunk of their salary or savings into the market.
Benefit of Mutual funds and SIP
- Systematic and disciplined investment
- Easy to liquidate
- Reduced risk and exposure
- Large fund/investment not required
- Variety of schemes and schedules available
- Tax Saving Schemes also available
.
For more articles, click here
.
.
.
.
.
.
Disclaimer: Views expressed on MoneySymphony.com are just an expression of thoughts. To no extend we are or should be held liable for any losses or conflicts. MoneySymphony.com suggest users take advise from certified experts before taking any actions or investment decisions. User actions may carry risk. All decisions remain the sole responsibility of the individual only.