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Mutual Funds mf-sahi hai!

No other traditional methods of investment generate better results

Funds managed and recommended by experts

Feasibility to redeem and invest at any point of time, from anywhere

Research says, maximum number of investors trust mutual funds

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Top Performing Funds in India

  • 1yrs71.16%
  • 3yrs0%
  • 1yrs65.82%
  • 3yrs0%
  • 1yrs63.38%
  • 3yrs0%

Note:Top Funds are on basis of 1 Year Returns

Note:Top Funds are on basis of 1 Year Returns

Note:Top Funds are on basis of 1 Year Returns

Note:Top Funds are on basis of 1 Year Returns

What Are Mutual Funds?

When money from various investors is pooled together to be invested in company shares, bonds or stocks, a mutual fund is formed. A mutual fund is then managed to earn the highest possible returns by a professional fund manager.

A small fee is charged in return for managing the money by the mutual fund. The decision of investing in any mutual fund scheme is crucial and one must base this on the financial goal that they wish to achieve.

All mutual funds are registered with SEBI (Securities Exchange Board of India) which ensures a safe and secure mode of investment.

What Are The Types Of Mutual Funds?

Mutual Funds can be categorized as below:

Equity Funds

Equity funds offer schemes that allow investment of money collected by individual investors into shares of various companies. This way, when the share prices rise, the investors make a profit. The investors who have a high risk of appetite and can stay invested for a longer time duration.

Debt Funds

Debt funds, first of all, are less at risk in comparison to equity funds. These funds invest in fixed income government securities such as bonds, treasury bills or reputed corporate deposits. These funds usually have schemes which are recommended for short-term investment.

Balanced Funds

Balanced funds are balanced. That is an obvious statement. As the name suggests, balanced funds or hybrid funds invest in both equity and fixed income funds to maintain a certain return rate and balance out the risks.

ELSS- Tax Saving Mutual Fund

ELSS is an equity fund scheme but according to research, investors are majorly keen on investing in this. ELSS is a partially taxable scheme that generates higher returns and qualifies for tax exemptions under section 80C of the Indian Income Tax Act.

Why Invest In Mutual Funds?

Mutual Funds are the most lucrative plan of investment with a vast number of schemes to invest in and in a very simple and easy form of investment. One can start investing in mutual funds with as low as Rs 500/- and enjoy benefits with great returns. Mutual funds are considered to offer unexpected returns at times, as high as 70% when invested for a long term.

That being said, there are several benefits of investing in mutual funds. The key benefits are as follows:

Expert Money Management

Mutual fund companies hire professionally skilled managers to manage the money pooled in a mutual fund scheme. This ensures that the investor's money is being managed by an expert at all times and that they do not have to fret over it. It is the fund manager's job to decide which company shares, bonds or stocks to invest the pooled money into or to hold the capital.

Low-Cost Investment

A mutual fund is an option for every kind of investor. Investors with specific earnings every month can start investing with as low as just Rs 500/- per month and investors who have a big chunk of money with them because of some property selling, or ancestral inheritance, can invest a lump sum and seek benefits as well as high returns.

SIP It!

As mentioned above, every investor can seek benefits. SIP refers to Systematic Investment Plan, and this is for the investors who do not wish to make a one-time investment. Through the schemes in SIP, an investor can make small and manageable investments as installments every month. You can start your SIP with IIFL today. Just keep your Aadhaar Card and Rs 500/- ready!

Lock-In Period

Every mutual fund has a different lock-in period. This could be one must or none at all. ELSS is one tax-friendly mutual fund scheme that has the shortest lock-in period of 3 years for good returns. However, this must be noted that holding period of your investment is directly proportional to the return you receive. The longer you stay invest (after the mandatory lock-in period), the higher will be your returns. Also, an investor can withdraw at any time when he or she has invested in an open-ended mutual fund.

Flexibility To Switch Funds

Switching funds is usually done by fund managers or by an investor who has attained enough knowledge to make the switch. This is done to keep up with the market conditions. This information is usually provided by the asset manager of the fund who analyses and keeps an eye on the market conditions, closely. This ensures that the investment does not suffer during the market's volatility.

Flexible Terms Of Tenure

Most of the mutual funds have no time foundations unless the scheme specifies. For instance, ELSS is a tax saving scheme which has a lock-in period of 3 years minimum. Other investment schemes have flexible tenure depending on your financial goals.

Liquidity

Out of the many benefits, one of the most prominent is the fact that mutual funds are completely liquid. You can withdraw your invested money any time you want.

Tax-Efficiency

Mutual funds are the investment method that ensures tax-saving at the most. Many of the mutual fund schemes have proven to be very tax-efficient and have generated high returns in comparison to any other traditional form of investment. View recommendations by IIFL's expert team for tax-saving funds here.

Diversification and Goal-Based Investment

In order to manage risk, mutual funds invest in various assets, shares, bonds, and different company sizes. So, this way when one underperforms, the other gains to compensate for the loss. The recommended number of entities to invest in is 5 as then it might become complicated to monitor the funds. The investment made in various schemes can also be goal-based, according to the kind of results that an investor expects. For instance, one can like fixed income after retirement or want to save tax, or just wish to save for a new car.

When To Invest In Mutual Funds?

Whenever you choose to invest is the RIGHT time for you. However, it is highly advisable that you start investing as early as possible to seek the benefits at best.

Few factors that one must keep in mind before investing:

  • Availability of funds
  • Desired duration of the investment
  • Market conditions
  • Returns expected

We would still like to repeat ourselves and suggest that investment must begin at an early stage in life when an individual feels that they are able to save any amount of time, it can be as low as Rs 500/-.

Here's an example displaying the power of compounding when three investors started investing at different stages with different amount every month and still the investor who invested the least amount of money every month reaped a more monetary benefit in comparison to the other two.

Name Age Tenure Amount Invested Total Amount Invested Rate Of Expected Interest Amount At Maturity
Anil 25 year 30 year 7K/Month 18 Lacs 10% 1.6 Crores
Madhav 35 year 20 year 10K/Month 18 Lacs 10% 76.6 Lacs
Nitin 45 year 10 year 13K/Month 18 Lacs 10% 26.9 Lacs

Who Should Invest In Mutual Funds?

Mutual fund schemes are designed based on the specific financial goals for every investor. So, it is ideal for every kind of investor to invest in mutual funds and seek benefits.

For instance, you should invest in mutual funds if you are:

  • Retired, and looking for regular income.
  • Salaried, and looking to save some amount every month.
  • Looking to invest a lump sum amount of money for a longer term to reap benefits later.
  • Looking to make a short-term investment to say, for example, buy a car, go for a vacation, or buy a house.
  • Looking to save tax and at the same time grow your investment returns.

We may have skipped many reasons that one might want to make investments for. The point is, anyone who wishes to grow their wealth and earnings, should start investing!


Fund House: Mutual Fund companies in India

Mutual Fund Name No. of Schemes (Incl Options) 30-Sep-2020 30-Jun-2020 Net Chg
Aditya Birla Sun Life Mutual Fund 746 239028.96 214866.37 24162.6
Axis Mutual Fund 302 156493.56 134482.57 22011
Baroda Mutual Fund 131 7646.26 7307.48 338.78
BNP Paribas Mutual Fund 132 6786.22 6380.24 405.98
BOI AXA Mutual Fund 100 2071.32 1943.38 127.94
Canara Robeco Mutual Fund 109 19855.93 17262.99 2592.94
DSP Mutual Fund 359 82286 73477.34 8808.65
Edelweiss Mutual Fund 195 37431.52 25298.28 12133.24
Essel Mutual Fund 90 686.73 638.58 48.16
Franklin Templeton Mutual Fund 424 80006.66 80640.33 -633.67
HDFC Mutual Fund 747 376379.1 356710.35 19668.75
HSBC Mutual Fund 185 9479.48 8929.46 550.02
ICICI Prudential Mutual Fund 1408 368697.71 333709.52 34988.19
IDBI Mutual Fund 107 4724 3801.81 922.19
IDFC Mutual Fund 428 114519.06 101933.56 12585.5
IIFCL Mutual Fund 2 612.28 580.14 32.15
IIFL Mutual Fund 22 1668.71 1508.64 160.08
IL&FS Mutual Fund 14 1767.7 1803.92 -36.22
Indiabulls Mutual Fund 131 905.74 969.62 -63.89
Invesco Mutual Fund 233 27147.09 23132.24 4014.85
ITI Mutual Fund 52 707.99 581.1 126.89
JM Financial Mutual Fund 129 4182.48 4048.62 133.85
Kotak Mahindra Mutual Fund 387 192311.3 167787.88 24523.43
L&T Mutual Fund 262 63057.2 58361.93 4695.27
LIC Mutual Fund 141 18079.94 15002.38 3077.56
Mahindra Manulife Mutual Fund 71 5036.09 4707.52 328.58
Mirae Asset Mutual Fund 101 50316.59 40998.21 9318.38
Motilal Oswal Mutual Fund 75 21659.06 17706.86 3952.2
Nippon India Mutual Fund 1140 201301.77 181048.09 20253.69
PGIM India Mutual Fund 261 4102.68 3693.37 409.31
PPFAS Mutual Fund 12 5064.83 3600.9 1463.93
Principal Mutual Fund 111 6282.54 5494.77 787.78
Quant Mutual Fund 70 281.14 238.85 42.3
Quantum Mutual Fund 30 1585.93 1288.73 297.2
SBI Mutual Fund 587 422122.96 364915.86 57207.1
Shriram Mutual Fund 16 182.27 165.14 17.13
Sundaram Mutual Fund 460 28070.06 25794.24 2275.83
Tata Mutual Fund 403 56457.64 48202.34 8255.29
Taurus Mutual Fund 52 408.69 357.77 50.92
Union Mutual Fund 75 4018.57 3623.49 395.07
UTI Mutual Fund 1283 155190.1 133631.09 21559.01
YES Mutual Fund 28 84.43 56.98 27.45