Which are the best mutual funds to invest in India in 2021-2022?

Mutual Funds are an amazing way to create wealth by investing a small amount of money monthly.

Wealth Creation through Methodic Investment

For wealth creation, investing in Mutual Funds should be done by keeping some things in mind:

  1. Invest in 3–5 Mutual Funds as a part of a diversification strategy
  2. Invest in Funds with Low Expense Ratio
  3. Invest with Fund Manager who has a good track record
  4. Invest with a fund that has lower exposure to Small-Microcap Stocks
  5. Invest with Fund Track Record Exceeding 5years
  6. Invest in Funds that have P/E < 20 & P/E > 10
P/E Ratio: Metric Before Investing in Securities

So, let us look at the Mutual Funds that we need to focus on, irrespective of the Market one is looking at

  1. Large Cap Mutual Fund
  2. Multi-Cap Mutual Fund
  3. Balanced Mutual Fund
  4. Theme Based Fund – FMCG, Technology/Digitial, Infrastructure, Banking, etc.
  5. ELSS
Functioning of Mutual Funds

Now, let us talk about the Mutual Funds in line with this for the Indian Market

  1. Large Cap
    1. Mirae Asset Large Cap
    2. Axis Bluechip
    3. Aditya Birla Advantage Fund
  2. Multi-Cap
    1. HDFC Multicap
    2. SBI Multicap
    3. Axis Triple Advantage
  3. Balanced
    1. ICICI Balanced
    2. Quant Midcap
  4. Theme Based
    1. Tata Digital Mutual Fund
    2. ICICI Prudential Technology
    3. IDFC Infra Fund
  5. ELSS(Tax Saving)
    1. Axis ELSS
    2. IDFC ELSS

Except for ELSS, all other Mutual Funds are open-ended that will allow an individual to cash out if the fund is not performing.

Financial Planning Before Investing in Mutual Funds

Having said this, please perform your due diligence from your end despite the recommendation prior to investing your hard-earned money for future wealth creation.

Hope this helps.

You can follow my blog or Facebook page on investing for getting insight into other stocks.

Happy Investing!!

Reference:

  1. Best Large Cap Equity Mutual Funds Ranked By ETMONEY
  2. https://www.valueresearchonline.com/funds/selector/category/145/equity-multi-cap/
  3. https://www.valueresearchonline.com/funds/selector/category/102/equity-multi-cap/?end-type=1&plan-type=direct&exclude=suspended-plans
  4. ELSS Mutual Funds – What is ELSS Funds & How to Invest in India
  5. Technology Mutual Funds: Best IT sector equity funds in India

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