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Best Mutual Funds to Invest in 2021 in India

Best Mutual Funds to Invest in 2021 India For Long Term

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Funds become mutual funds when an asset management company pools investment from various individuals and institutions to purchase securities. For this purpose assets management company have a fund manager who manages all this process and tries to provide the best return to its investors. Under this post, we will try to explain to you the Best Mutual Funds to Invest in 2021 India For Long Term.

Best Mutual Funds to Invest in 2021 India For Long Term

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There are a lot of funds in mutual funds industries, which are categorized into 5 different categories which are as follow-

  1. Large Cap Fund
  2. Multi-Cap Fund
  3. Mid Cap Fund
  4. Small Cap Fund

Out of the above, it is difficult for the investors to make a selection of the Best Mutual fund. In 2020, the coronavirus pandemic crash the market, but after that for the last 1 year, Mutual Funds give a return of 74% (approx.).

According to the experts, the best place to invest in the long term is equity and if the investment is being made in mutual funds, then that should be done in equity mutual funds via SIP. So here is the categories wise list of Best Mutual Funds to Invest in 2021 India For Long Term.

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Top Mutual Funds for SIP in India 2021

Considering the various benefits of the Systematic Investment Plan (SIP) it is better to invest in mutual funds via SIP.

1. Best Large Cap Fund in India for SIP 2021

After re-classification made by SEBI, almost all the large-cap fund invested their money in some specified companies due to which the return of these funds almost remains the same. The below list is on the basis of the past performance of these funds.

Equity Fund Scheme Size (Cr.) Min SIP (Rs.) 3 Yr (%) 5 Yr (%)
Canara Robeco Bluechip Equity Fund DP (G) 1836.55 1000 18.64 18.31
Axis Bluechip Fund DP (G) 23496.02 500 18.34 18.10
Source- Paytm Money as on 28th Feb 2021

Tip- Considering the performance and fee of large-cap fund it is better to invest in an index fund because the return of index fund remains changed in the fixed ratio of Sensex and/or nifty and the fee charged for indexed fund remain nominal as compared to other large fund categories.

Also Read- Know the Best Pharma Mutual Funds to Invest in 2021

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2. Best Multi-Cap Fund in India for SIP 2021

These types of mutual funds primarily invest in stocks selected from all the listed stocks in the Indian Market (BSE/NSE). Investors who are looking to invest money for at least 3-4 years can invest in multi-cap funds.

Equity Fund Scheme Size (Cr.) Min SIP (Rs.) 3 Yr (%) 5 Yr (%)
Quant Active Fund DP (G) 208.82 1000 20.76 20.63
Principal Multi Cap Growth Fund DP (G) 714.87 100 9.72 16.49
Invesco India Multi Cap Fund DP (G) 1165.78 500 10.55 15.48
Best Mutual Funds to Invest in 2021 India For Long Term

Source- Paytm Money as on 28th Feb 2021

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3. Best Mid Cap Fund in India for SIP 2021

These types of mutual funds are suitable for long-term investments. They have higher growth potentials than large-cap companies and are less risky than small-cap companies.

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Equity Fund Scheme Size (Cr.) Min SIP (Rs.) 3 Yr (%) 5 Yr (%)
Axis Midcap Fund DP (G) 9757.42 500 20.06 20.56
Kotak Emerging Equity Fund DP (G) 10431.20 1000 14.77 19.73
PGIM India Midcap Opportunities Fund DP (G) 933.56 1000 19.58 19.09
Best Mutual Funds to Invest in 2021 India For Long Term

Source- Paytm Money as on 28th Feb 2021

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4. Best Small Cap Fund in India for SIP 2021

Small-cap mutual funds invest at least 65% of their total assets in small-cap companies. Small-cap companies are emerging businesses that have an aggressive expansion strategy being more volatile and vulnerable to market movements.

Equity Fund Scheme Size (Cr.) Min SIP (Rs.) 3 Yr (%) 5 Yr (%)
SBI Small Cap Fund DP (G) 7310.58 500 13.14 22.11
Nippon India Small Cap Fund DP (G) 11961.08 100 11.25 21.12
Kotak Small Cap Fund DP (G) 3059.07 1000 16.54 20.18
Best Mutual Funds to Invest in 2021 India For Long Term

Source- Paytm Money as on 28th Feb 2021

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After Rs. 1270 Crore public issue so far till Feb 2021, this list of IPO likely in March 2021

How to Invest in Mutual Funds?

After getting knowledge about “Best Mutual Funds to Invest in 2021 India For Long Term”, it is necessary to know how to make an investment in mutual funds.

To make an investment in mutual funds, you can choose the offline or online mode as well. Making an offline investment in mutual funds makes a lot of paperwork. To avoid paperwork, it is better to make an investment online for which you can choose Upstox.

Upstox is a platform, where you can invest online through its web or app. There is no paperwork and all the procedure is online with e-KYC facilities.

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Here is the link to Upstox, through which you can invest online in more than 2000 mutual funds. You can choose the best mutual fund of your choice and study all the detailed analyses.

Some FAQs for Mutual Funds

  1. Can I Invest 100 Rs. in Mutual Funds

    Yes, you can start with a SIP of Rs. 100 per month in specified mutual funds.

  2. Which is better Mutual Funds or FD?

    A Fixed Deposit give pre-decided return, which do not change as per tenure of investments whereas mutual funds offer better return on long term investments as they are market linked.

  3. What is Blue-Chip Fund?

    A blue-chip mutual fund is the one that invests in blue-chip stocks or shares i.e. in a well-settled company with excellent overall financial performance.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

Mutual Funds Investments are subject to market risk, read all scheme related documents carefully.

Feedback/Suggestion- Hope you all find the Best Mutual Funds to Invest in 2021, please give your valuable feedback & let us know if there is an error. Thanks in Advance

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This post was last updated on April 6, 2021 12:15 PM

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Parag Agarwal: I am a full-time professional Blogger & Entrepreneur. I already have many blogs on diversified topics and also manages more than 10 pages on assorted subject matters. I have more than 5+ years of acetic and delightful experience in Blogging and writing on more than 100+ topics in English and Hindi both. I started my blog as my dream project to help others to get knowledge with my content. I was not pro or perfect however I started imperfectly and achieved my end goals. Always remember the caption “You never lose, either you win it or learn it “ Contact us- parag@funandknowledgenet.in
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