What is a Mutual Funds and List of Best Mutual Funds

What is a Mutual Funds and List of Best Mutual Funds 

What is a Mutual Funds and List of Best Mutual Funds 

What is a 'Mutual Fund'

A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

What is a Mutual Funds and List of Best Mutual Funds 

More on Mutual Funds

A mutual fund is both an investment and an actual company. This may seem strange, but it is actually no different than how a share of AAPL is a representation of Apple, Inc. When an investor buys Apple stock, he is buying part ownership of the company and its assets. Similarly, a mutual fund investor is buying part ownership of the mutual fund company and its assets. The difference is Apple is in the business of making smartphones and tablets, while a mutual fund company is in the business of making investments.

Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds. The value of the mutual fund company depends on the performance of the securities it decides to buy. So when you buy a share of a mutual fund, you are actually buying the performance of its portfolio.

The average mutual fund holds hundreds of different securities, which means mutual fund shareholders gain important diversification at a very low price. Consider an investor who just buys Google stock before the company has a bad quarter. He stands to lose a great deal of value because all his dollars are tied to one company. On the other hand, a different investor may buy shares of a mutual fund that happens to own some Google stock. When Google has a bad quarter, she only loses a fraction as much because Google is just a small part of the fund's portfolio.

What is a Mutual Funds and List of Best Mutual Funds 

How Mutual Fund Companies Work

Mutual funds are virtual companies that buy pools of stocks and/or bonds as recommended by an investment adviser and fund manager. The fund manager is hired by a board of directors and is legally obligated to work in the best interest of mutual fund shareholders. Most fund managers are also owners of the fund, though some are not.

There are very few other employees in a mutual fund company. The investment adviser or fund manager may employ some analysts to help pick investments or perform market research. A fund accountant is kept on staff to calculate the fund's net asset value (NAV), or the daily value of the mutual fund that determines if share prices go up or down. Mutual funds need to have a compliance officer or two, and probably an attorney, to keep up with government regulations.

Most mutual funds are part of a much larger investment company apparatus; the biggest have hundreds of separate mutual funds. Some of these fund companies are names familiar to the general public, such as Fidelity Investments, the Vanguard Group, T. Rowe Price and Oppenheimer Funds.

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What is a Mutual Funds and List of Best Mutual Funds 

How Mutual Fund Companies Work

Mutual funds are virtual companies that buy pools of stocks and/or bonds as recommended by an investment adviser and fund manager. The fund manager is hired by a board of directors and is legally obligated to work in the best interest of mutual fund shareholders. Most fund managers are also owners of the fund, though some are not.

There are very few other employees in a mutual fund company. The investment adviser or fund manager may employ some analysts to help pick investments or perform market research. A fund accountant is kept on staff to calculate the fund's net asset value (NAV), or the daily value of the mutual fund that determines if share prices go up or down. Mutual funds need to have a compliance officer or two, and probably an attorney, to keep up with government regulations.

Most mutual funds are part of a much larger investment company apparatus; the biggest have hundreds of separate mutual funds. Some of these fund companies are names familiar to the general public, such as Fidelity Investments, the Vanguard Group, T. Rowe Price and Oppenheimer Funds.

Kinds of Mutual Funds

Mutual funds are divided into several kinds of categories, representing the kinds of securities the mutual fund manager invests in.

One of the largest is the fixed income category. A fixed income mutual fund focuses on investments that pay a fixed rate of return, such as government bonds, corporate bonds or other debt instruments. The idea is the fund portfolio generates a lot of interest income, which can then be passed on to shareholders.

Another group falls under the moniker "index funds."  The investment strategy is based on the belief that it is very hard, and often expensive, to try to consistently beat the market. So the index fund manager simply buys stocks that correspond with a major market index such as the S&P 500 or the Dow Jones Industrial Average. This strategy requires less research from analysts and advisers, so there are fewer expenses to eat up returns before they are passed on to shareholders. These funds are often designed with cost-sensitive investors in mind.

What is a Mutual Funds and List of Best Mutual Funds 

List of Best Mutual Funds 

Top 10 Large Cap-oriented Equity Funds

1.     Mirae Asset India Opportunities Direct-G
2.     Motilal Oswal MOSt Focused 25 Direct-G
3.     Aditya Birla SL Top 100 Direct-G
4.     Kotak Classic Equity - Direct (G)
5.     Aditya Birla SL Top 100-G
6.     SBI Blue Chip Fund - Direct (G)
7.     Invesco India Dynamic Equity Fund(G)
8.     Franklin India Bluechip Fund(D)
9.     ICICI Pru Focused Bluechip Equity Direct-G
10.     Aditya Birla SL Frontline Equity Fund(D)

Top 10 Diversified Equity Funds

1.     DSPBR Opportunities Fund-Reg(G)
2.     ICICI Pru Multicap Fund(D)
3.     Kotak Opportunities Fund(G)
4.     SBI Magnum Multicap Fund-Reg(D)
5.     BNP Paribas Dividend Yield -Dir (G)
6.     Aditya Birla SL Advantage Fund(D)
7.     HDFC Capital Builder Fund(G)
8.     Franklin India Prima Plus Fund(D)
9.     DSPBR Opportunities Fund-Reg(D)
10.     Tata Equity Opportunities Fund(D)

Top 10 Thematic – Infrastructure Funds

1.     IDFC Infrastructure - Direct (G)
2.     L&T Infrastructure -Direct (G)
3.     DSP-BR India TIGER - Direct (G)
4.     Franklin Build India - Direct (G)
5.     Kotak Infra and Eco Reform Standard-G
6.     Can Robeco Infrastructure
7.     Sundaram Infrastructure Adv -DP (G)
8.     ICICI Pru Infrastructure (G)
9.     Kotak Infra and Eco Reform Direct-G
10.     L&T Infrastructure-G

Top 10 Consistent Performers – Equity Funds

1.     Birla Sun Life India GenNext Fund
2.     DSP BlackRock Micro Cap Fund
3.     IDBI India Top 100 Equity Fund
4.     DSP BlackRock Micro Cap Fund
5.     Mirae Asset India Opportunities Direct-G
6.     SBI Blue Chip Fund
7.     Franklin India Flexi Cap Fund
8.     Motilal Oswal MOSt Focused 25 Fund - Regular Plan
9.     Quantum Long Term Equity – Regular Plan
10.     BNP Paribas Dividend Yield Fund

Top 10 Equity Linked Savings Schemes

1.     L&T Tax Advantage -Direct (G)
2.     IDFC Tax Advantage (ELSS)-RP (G)
3.     Tata India Tax Savings Fund - Direct (G)
4.     Aditya Birla SL Tax Plan(G)
5.     Franklin (I) Tax Shield -Direct (G)
6.     Principal Tax Savings Fund
7.     Invesco India Tax Plan - DP (G)
8.     Axis Long Term Equity Fund (G)
9.     Sundaram Diversified Equity(G)
10.     Aditya Birla SL Tax Relief '96(G)

Top 10 Multi-Cap Mutual Funds

1.     Motilal Oswal MOSt Focused Multicap 35 Direct-G
2.     Motilal Oswal MOSt Focused Multicap 35 Reg-G
3.     Aditya Birla SL Advantage Direct-G
4.     Aditya Birla SL Advantage-G
5.     Tata Retirement Savings Progressive Direct-G
6.     SBI Magnum MultiCap Direct-G
7.     Kotak Select Focus Direct-G
8.     ICICI Pru Nifty Next 50 Index Direct-G
9.     IDBI Nifty Junior Index Direct-G
10.     Aditya Birla SL Equity Direct-G

Top 10 Index Funds

1.     Kotak Nifty ETF
2.     ICICI Prudential Nifty Index Fund
3.     Reliance ETF Nifty BeES
4.     UTI Nifty Index Fund
5.     Franklin India Index Fund - NSE Nifty Plan
6.     HDFC Index Fund – Nifty Plan
7.     HDFC Index Fund – Sensex Plan
8.     IDBI Nifty Index Fund
9.     SBI Nifty Index Fund
10.     Goldman Sachs Nifty Exchange Traded Scheme

Top 10 Balanced Funds

1.     L&T India Prudence Fund
2.     ICICI Prudential Balanced Fund
3.     Reliance Regular Savings Fund
4.     Birla Sun Life Balanced 95 Fund
5.     Canara Robeco Balance
6.     DSP BlackRock Balanced Fund
7.     Kotak Balance Fund
8.     UTI Balanced Fund
9.     Franklin India Balanced Fund
10.     SBI Magnum Balanced Fund

Top 10 Aggressive Monthly Income Plans

1.     Birla Sun Life MIP II - Wealth 25 Plan
2.     ICICI Prudential MIP 25
3.     HDFC Monthly Income Plan
4.     HSBC Monthly Income Plan
5.     Kotak Monthly Income Plan
6.     IDFC Monthly Income Plan
7.     Reliance Monthly Income Plan
8.     UTI MIS Advantage Plan
9.     BNP Paribas Monthly Income Plan
10.     DSP BlackRock MIP Fund

Top 10 Long Term Gilt Funds

1.     IDFC G Sec Fund - PF Plan
2.     Reliance Gilt Securities Fund
3.     ICICI Prudential Gilt - Investment - PF Option
4.     UTI Gilt Advantage Fund - Long Term Plan
5.     Birla Sun Life Gilt Plus - PF Plan
6.     SBI Magnum Gilt Fund - Long Term
7.     DSP BlackRock Govt Sec Fund
8.     Franklin India G-Sec Fund - Long Term Plan
9.     HDFC Gilt Fund - Long Term Plan
10.     L&T Gilt

Top 10 Consistent Performers – Debt Funds

1.     SBI Dynamic Bond Fund (G)
2.     UTI Dynamic Bond Fund (G)
3.     HDFC Medium Term Opportunities Fund. (G)
4.     IDFC SSIF - MTP - Regular (G)
5.     LIC Income Plus Fund (G)
6.     Birla Sun Life MNC Fund
7.     Reliance Equity Opportunities Fund
8.     Reliance Medium Term(G)
9.     ICICI Pru Ultra Short Term Plan(MD)
10.     Aditya Birla SL Short Term Fund(MD)

Top 10 Credit Opportunities Funds

1.     ABSL Corporate Bond Fund
2.     Franklin India Dynamic Accrual
3.     Birla Sun Life Short Term Opportunities Fund
4.     Reliance Corporate Bond Fund
5.     ICICI Prudential Corporate Bond Fund
6.     UTI Income Opportunities Fund
7.     BOI AXA Corporate Credit
8.     Franklin India Low Duration Fund
9.     HDFC Corporate Debt Opp. -Dir (G)
10.     SBI Corporate Bond Fund

Top 10 Short-Term Income Funds

1.     Birla Sun Life Short Term Fund
2.     ICICI Prudential Banking & PSU
3.     HDFC Medium Term Opportunities Fund
4.     Franklin India Low Duration Fund
5.     Indiabulls Short Term Fund - Regular Plan
6.     Reliance Medium Term Fund
7.     Axis Short Term Fund
8.     DHFL Pramerica Banking & PSU Debt Fund
9.     IDFC Super Saver Income Fund – Short Term
10.     L&T Short Term Opportunities Fund

Top 10 Ultra Short-Term Debt Funds

1.     DHFL Pramerica Short Term Floating Rate Fund
2.     UTI Treasury Advantage Fund
3.     LIC MF Income Plus Fund
4.     L&T Ultra Short Term Fund
5.     Kotak Treasury Advantage Fund
6.     DSP BlackRock Ultra Short Term Fund
7.     JM Money Manager Fund – Super Plus
8.     IDFC Ultra Short Term Fund
9.     Invesco India Credit Opportunities Fund
10.     1Axis Banking Debt Fund

Top 10 Liquid Funds

1.     Indiabulls Liquid Fund -Direct (G)
2.     JM High Liquidity Fund
3.     L&T Liquid Fund
4.     Sundaram Money Fund
5.     Axis Liquid Fund
6.     DHFL Pramerica Insta Cash Plus Fund
7.     Invesco India Liquid Fund
8.     SBI Magnum Insta Cas
9.     Kotak Floater STP – Direct
10.     HDFC Liquid Fund

Best Mutual Funds for Conservative Investors

1.     SBI Magnum MIP - Direct (G)
2.     Can Robeco Yield Adv. -Direct (G)
3.     UTI Monthly Income Scheme-Direct(G)
4.     Sundaram CPOF- Sr 4 -2 years (G)
5.     ICICI Pru MIP - Direct (G)
6.     Principal Equity Savings Fund - D - (G)
7.     HSBC MIP - Direct (G)
8.     ICICI Prudential Regular Income-Dir (G)
9.     Aditya Birla SL MI (G)
10.     JM Monthly Income Plan -Direct (G)

Best Mutual Funds for Moderate Investors

1.       HDFC Balanced Fund
2.     SBI Bluechip
3.     ICICI Prudential Value Discovery Fund
4.     Aditya Birla SL Frontline Equity Fund(G)
5.     Franklin India Bluechip Fund(G)
6.     DSPBR Opportunities Fund-Reg(G)
7.     Axis LT Equity Fund(G)
8.     ICICI Pru Banking & Fin Serv Fund(G)
9.     ICICI Prudential Dynamic Plan
10.     Quantum Long Term Equity

Best Mutual Funds for Aggressive Investors

1.     ICICI Prudential Value Discovery Fund
2.     HDFC Balanced Fund
3.     BNP Paribas Mid Cap Fund(G)
4.     Franklin India Smaller Companies Fund(G)
5.     Aditya Birla SL Tax Plan(G)
6.     ICICI Pru Banking & Fin Serv Fund(G)
7.     Franklin Build India Fund(G)
8.     Canara Robeco Emerging Equities Fund - Regular Plan
9.     DSP BlackRock Micro Cap Fund - Regular Plan
10.     Kotak Emerging Equity Scheme Regular Plan

What is a Mutual Funds and List of Best Mutual Funds