Still, wondering if you should put some money away in mutual funds or not? The March 2021 market crash may have kept some of you on the fence about investing. But in the long run all fluctuations even out. 

All market gurus have always mentioned that time in the market is more important than timing the market.  There is no wrong or right time to invest in some of the best mutual funds in India. The right time is whenever you want to invest.

Markets never indicate bouncing back! Those who continued their investments bear fruits in the long term.

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Hence pick any moment as an opportunity for your long-term financial planning and stay ahead of others.

Disclaimer: Here we have filtered the top five best mutual funds to invest for you who have returned the most in the past three years. Please note this is solely for information purposes and not a recommendation. Returns should not be the only or the main parameter to invest in a mutual fund. Please do the due diligence in research and pick mutual funds and asset classes that suit your investment profile. The list was last updated on February 4.

Best Mutual Funds 2021

Equity Funds

Equity funds are mutual funds that are mandated to invest maximum money in stocks of different companies. They derive their name and categorisation depending on the kind of stocks they are investing in. For example, large-cap funds invest in stocks of large-cap companies.

Here are some of the best lump sum investment plan for equity fund category:

Large Cap Funds

Large-cap funds invest some of the largest companies by market capitalization.

Mid Cap Funds

Small-Cap Funds

Multi-Cap Fund

Multi cap funds are mandated to invest 25% each in small-, mid- and large-cap funds.

ELSS Funds

Equity-linked saving schemes (ELSS) provide tax relief under section 80 C.

Debt Funds

Debt funds invest in bonds and money market instruments of companies. There are up to 15 sub-categories under debt funds. Here are some of the best mutual fund for lumpsum investment under the debt fund category:

Top Liquid Funds

Liquid funds invest in securities with maturity up to 91 days.

Top Banking and PSU Debt Funds

These funds lend to banking and public sector undertakings.

Top Corporate Funds

These funds buy debt securities of companies.

Ultra Short Term Funds

Ultra short term funds invest in securities with maturity between 3 to 6 months.

Hybrid Funds

Hybrid funds are a combination of equity and debt investments.

Arbitrage Hybrid Fund

These funds use the arbitrage technique to invest. Arbitrage is a strategy that aims to take advantage of price differences.

Balanced Advantage Fund

These funds have the advantage to invest across equity and debt without restrictions.

Aggressive Hybrid Fund

Aggressive hybrid funds invest more in equity instruments than debt.

Conservative Hybrid Fund

Conservative hybrid funds invest more in debt instruments than equity.

Other Funds

Gold Funds

Final Words

These may be some of the best performing mutual funds based on highest returns; however, returns should not be considered as the only criteria. When selecting mutual funds, fund manager and AMC history, asset class, category of fund, goals, other financial metrics and performance of peer funds are also required to be ascertained. Research, understand your requirements and begin your mutual fund journey.

Happy Investing!


Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.