Mutual fund investments are in the spotlight for providing the best investment options for long-term creation of wealth.

The availability of more than thousands of mutual funds in the Indian market has made it a daunting task to select the best plan to suit your requirement, budget and investment goals.

SEBI, on the other hand, has brought in re-categorization of mutual funds.

Some mid-cap funds are no longer mid-cap. They have become small-cap funds. Or even large and mid-cap funds.

This re-categorization is obviously a very rare occurrence.

In that light, here is an updated list of the best mutual funds from all categories to invest in 2018. These top mutual funds have been selected based on various factors like ratings, past performance, AUM size and so on.

The mutual fund schemes are now broadly classified into the following schemes:

A. Equity Schemes

SEBI has decided a total of 11 categories under the equity scheme, but a mutual fund company can only have 10 categories and it has to choose between Value or Contra fund.

Here is the list of best mutual fund in each category of equity oriented schemes.

1. Multi Cap Funds

Minimum investment in equity & equity related instruments – 65% of total assets. In these funds, capital is invested in companies across different capitalization. Best mutual fund in this category is:

Mirae Asset India Equity Fund-Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹52.7
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹7,945 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.32%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 10.5%
3 years 17.5%
5 years 24.0%
Since launch 19.6%

2. Large Cap Funds

Minimum investment in equity & equity related instruments of large cap companies has to be 80% of total assets. Best mutual fund in this category is:

ICICI Prudential Bluechip Equity Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹45.1
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹16,539 Cr
Riskometer Moderately High
Minimum SIP ₹100
Minimum SWP ₹100
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 100 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.17%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years:

Duration Returns
1 year 15.6%
3 years 16.2%
5 years 21.6%
Since launch 16.73%

3. Large & Mid Cap Funds

Minimum investment in equity & equity related instruments of large and mid cap companies – 35% of total assets each. Best mutual fund in this category is:

Invesco India Growth Opportunities Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹37.7
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹672 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 250 Large MidCap 65:35 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.10%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 22.4%
3 years 18.3%
5 years 25.4%
Since launch 19.24%

4. Mid Cap Funds

Minimum investment in equity & equity related instruments of mid cap companies has to be 65% of total assets. Best mutual fund in this category is:

Axis Midcap Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹39.4
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,396 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE Mid Cap TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.38%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 17.4%
3 years 14.6%
5 years 27.6%
Since launch 20.3%

5. Small Cap Funds

Minimum investment in equity & equity related instruments of small cap companies has to be 65% of total assets. Best mutual fund in this category is:

HDFC Small Cap Fund – Direct – Growth

Key information:

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹48.3
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹4,143 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Small-cap 100 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 0.49%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 20.7%
3 years 23.6%
5 years 26.1%
Since launch 21.41%

6. Dividend Yield Funds

The scheme should predominantly invest in dividend yielding stocks. Minimum investment in equity must be 65% of total assets. Best mutual fund in this category is:

Principal Dividend Yield Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹56.9
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹146 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Div Opps 50 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 2.16%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 12.6%
3 years 18.1%
5 years 20.8%
Since launch 14.2%

7. Value Funds

It is an equity mutual fund following a value investment strategy. Minimum investment in equity & equity related instruments has to be 65% of total assets. Best mutual fund in this category is:

Tata Equity P/E Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹147.2
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹4,180 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE Sensex TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.01%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 5.6%
3 years 20.4%
5 years 27.3%
Since launch 20.45%

8. Contra Funds

An equity mutual fund following a contrarian investment strategy. Minimum investment in equity & equity related instruments has to be 65% of total assets. Best mutual fund in this category is:

Invesco India Contra Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹52.9
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹919 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 0.98%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 17.1%
3 years 19.9%
5 years 29.0%
Since launch 21.36%

9. Focused Funds

An equity scheme investing in maximum 30 stocks. Minimum investment in equity & equity related instruments has to be 65% of total assets. Best mutual fund in this category is:

SBI Focused Equity Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹145.6
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹2,742 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.29%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 14.5%
3 years 16.8%
5 years 24.3%
Since launch 16.2%

10. Sectoral/Thematic Funds

Sector funds invest in stocks of companies that operate in a particular industry or sector of the economy like banking, infrastructure, rural, pharma etc.

Minimum investment in equity & equity related instruments of a particular sector/particular theme has to be 80% of total assets. Best mutual fund in this category is:

ICICI Prudential Technology Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹65
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹391 Cr
Riskometer High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE IT TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.76%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 56.8%
3 years 15.3%
5 years 22.1%
Since launch 23.6%

11. Equity Linked Savings Scheme (ELSS)

ELSS is a dedicated mutual fund scheme that allows investors to save tax and also provides an opportunity for long-term capital appreciation.

Minimum investment in equity & equity related instruments has to be 80% of total assets. Best mutual fund in this category is:

Aditya Birla Sun Life Tax Relief 96 – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹34.8
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹6,187 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.11%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 15.8%
3 years 17.3%
5 years 25.4%
Since launch 20.4%

B. Debt Schemes

These mutual funds are best for investors who are risk averse. SEBI has decided total 16 categories under the debt scheme.

Here is the list of the best mutual fund in each category of debt oriented schemes.

1. Overnight Fund

Investment in overnight securities that have a maturity of 1 day. Best mutual fund in this category is:

HDFC Overnight Fund – Direct – Growth

Key information

Launch Date 31 December 2012
NAV (14 Sep 2018) ₹2730.4
Plan Type Direct
Rating by Groww 1 Star
AUM (Fund Size) ₹112 Cr
Riskometer Low
Minimum SIP Not supported
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its CRISIL CBLO Index since its launch.
Age of the fund 5 years old
Expense Ratio 0.15%
Exit Load NIL
Type  Open Ended

Performance over the years

Duration Returns
1 year 6.0%
3 years 6.3%
5 years 7.0%
Since launch 7.11%

2. Liquid Fund

Investment in debt and money market securities with a maturity of up to 91 days only. Best mutual fund in this category is:

ICICI Prudential Liquid Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹265.7
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹47,395 Cr
Riskometer Moderately Low
Minimum SIP ₹500
Minimum SWP Not Supported
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.15%
Exit Load NIL
Type  Open Ended

Performance over the years

Duration Returns
1 year 7.1%
3 years 7.3%
5 years 8.0%
Since launch 8.15%

3. Ultra Short Duration Fund

Investment in debt & money market instruments, such that the duration of the portfolio is between 3 – 6 months. Best mutual fund in this category is:

Franklin India Ultra Short Bond Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹25
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹13,240 Cr
Riskometer Low
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.34%
Exit Load NIL
Type  Open Ended

Performance over the years

Duration Returns
1 year 7.5%
3 years 8.9%
5 years 9.4%
Since launch 9.4%

 4. Low Duration Fund

Investment in debt & money market instruments, such that the duration of the portfolio is between 6 months – 12 months. Best mutual fund in this category is:

Franklin India Low Duration Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹21
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹5,908 Cr
Riskometer Moderately Low
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short-Term Bond  since its launch.
Age of the fund 5 years old
Expense Ratio 0.45%
Exit Load If redeemed bet. 0 Months to 3 Months; Exit Load is 0.5%;
Type  Open Ended

Performance over the years

Duration Returns
1 year 7.4%
3 years 9.1%
5 years 9.7%
Since launch 9.6%

5. Money Market Fund

Investment in money market instruments that has a maturity of up to 1 year. Best mutual fund in this category is:

L&T Money Market Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹18.1
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹872 Cr
Riskometer Moderately Low
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.28%
Exit Load NIL
Type  Open Ended

Performance over the years

Duration Returns
1 year 7.3%
3 years 8.6%
5 years 8.7%
Since launch 8.7%

6. Short Duration Fund

Investment in debt & money market instruments such that duration of the portfolio is between 1 – 3 years. Best mutual fund in this category is:

HDFC Short Term Debt Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹19.8
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹9,490 Cr
Riskometer Moderately Low
Minimum SIP ₹1,000
Minimum SWP NIL
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short-Term Bond since its launch.
Age of the fund 5 years old
Expense Ratio 0.25%
Exit Load NIL
Type  Open Ended

Returns per annum

Duration Returns
1 year 5.5%
3 years 7.7%
5 years 8.8%
Since launch 8.5%

7. Medium Duration Fund

Investment in debt & money market instruments such that the duration of the portfolio is between 3 – 4 years. Best mutual fund in this category is:

SBI Magnum Medium Duration Fund – Direct – Growth

Key Information

Launch Date 28 January 2013
NAV (14 Sep 2018) ₹32
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹1,563 Cr
Riskometer Moderately Low
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Medium Duration since its launch.
Age of the fund 5 years old
Expense Ratio 0.57%
Exit Load If redeemed bet. 0 Month to 12 Month; Exit Load is 1.5%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.6%
3 years 9.7%
5 years 11.1%
Since launch 9.7%

8. Medium to Long Duration Fund

Investment in debt & money market instruments such that the duration of the portfolio is between 4 – 7 years. Best mutual fund in this category is:

ICICI Prudential Bond Fund – Direct – Growth

Key Information

Launch Date 2 January 2013
NAV (14 Sep 2018) ₹24.8
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹3,298 Cr
Riskometer Moderate
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Medium to Long Duration Debt since its launch.
Age of the fund 5 years old
Expense Ratio 0.48%
Exit Load If redeemed bet. 0 Month to 6 Month; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 1.7%
3 years 7.2%
5 years 9.1%
Since launch 8.1%

9. Long Duration Fund

Investment in debt & money market instruments such that the duration of the portfolio is greater than 7 years. Best mutual fund in this category is:

IDFC Bond Fund – Long Term Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹43.2
Plan Type Direct
Rating by Groww 3 Star
AUM (Fund Size) ₹1,316 Cr
Riskometer Moderate
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has not consistently outperformed its benchmark CRISIL Composite Bond since its launch. Last 1Y return is less than benchmark.
Age of the fund 5 years old
Expense Ratio 1.01%
Exit Load If redeemed bet. 0 Day to 365 Day; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year -0.7%
3 years 6.8%
5 years 8.4%
Since launch 8.1%

10. Dynamic Bond

It invests across different durations. Best mutual fund in this category is:

Kotak Dynamic Bond Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹23.4
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹747 Cr
Riskometer Moderate
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Medium to Long Duration Debt since its launch.
Age of the fund 5 years old
Expense Ratio 0.40%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 3.5%
3 years 8.6%
5 years 9.3%
Since launch 9.1%

11. Corporate Bond Fund

Minimum investment in highest rated corporate bonds – 80% of total assets. Best mutual fund in this category is:

Aditya Birla Sun Life Corporate Bond Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹68.1
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹15,654 Cr
Riskometer Moderately low
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short-Term Bond since its launch.
Age of the fund 5 years old
Expense Ratio 0.27%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.6%
3 years 7.8%
5 years 8.8%
Since launch 8.6%

12. Credit Risk Fund

Minimum investment in below highest rated corporate bonds – 65% of total assets. Best mutual fund in this category is:

Invesco India Money Market Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹2078
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹668 Cr
Riskometer Moderate
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.28%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 7.4%
3 years 7.6%
5 years 8.5%
Since launch 8.6%

13. Banking and PSU Fund

Minimum investment in debt instruments of banks, public sector undertakings, public financial institutions – 80% of total assets. Best mutual fund in this category is:

Kotak Banking & PSU Debt Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹40.4
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹1,022 Cr
Riskometer Moderate
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Banking and PSU Debt since its launch.
Age of the fund 5 years old
Expense Ratio 0.16%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.5%
3 years 7.7%
5 years 8.4%
Since launch 8.5%

14. Gilt Fund

Minimum investment in Gsecs – 80% of total assets (across maturity). Best mutual fund in this category is:

ICICI Prudential Gilt Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹35.5
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹860 Cr
Riskometer Moderate
Minimum SIP Not Supported
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Dynamic Gilt since its launch.
Age of the fund 5 years old
Expense Ratio 0.39%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.0%
3 years 8.8%
5 years 8.1%
Since launch 8.8%

15. Gilt Fund with a 10 year constant duration

Minimum investment in Gsecs – 80% of total assets such that the duration of the portfolio is equal to 10 years. Best mutual fund in this category is:

SBI Magnum Constant Maturity Fund – Direct – Growth

Key information

Launch Date 2 January 2013
NAV (14 Sep 2018) ₹23.4
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹395 Cr
Riskometer Moderate
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL 10-Year Gilt since its launch.
Age of the fund 5 years old
Expense Ratio 0.41%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 3.6%
3 years 8.4%
5 years 9.6%
Since launch 9.4%

16. Floater Fund

Minimum investment in floating rate instruments – 65% of total assets. Best mutual fund in this category is:

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹28.5
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹272 Cr
Riskometer Moderate Low
Minimum SIP Not Supported
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Composite Bond since its launch.
Age of the fund 5 years old
Expense Ratio 0.52%
Exit Load Nil
Type  Open Ended

Returns per annum

Duration Returns
1 year 7.8%
3 years 8.5%
5 years 8.9%
Since launch 8.8%

C. Hybrid Schemes

These are diversified mutual funds that have a perfect balance between risk and returns on investment, and these are the most popular mutual funds these days.

There are 7 categories under hybrid schemes as defined by SEBI.

Here is a list of the best mutual fund in the hybrid category

1. Conservative Hybrid Fund

They invest predominantly in debt instruments. 10-25% of total assets in equity related instruments and 75-90% of total assets in debt instruments. Best mutual fund in this category is:

ICICI Prudential Regular Savings Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹42.3
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,641 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Hybrid Composite Debt 15:85 since its launch.
Age of the fund 5 years old
Expense Ratio 1.23%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.7%
3 years 10.2%
5 years 13.0%
Since launch 11.2%

2. Balanced Hybrid Fund

They invest 50-50% in equity and debt instruments. No arbitrage would be permitted in this scheme. Best mutual fund in this category is:

HDFC Balanced Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹154.4
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹22,109 Cr
Riskometer Moderately High
Minimum SIP Not Supported
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Arbitrage TRI (40), NIFTY 50 Total Return (30) and CRISIL Short-Term Bond (30) since its launch.
Age of the fund 5 years old
Expense Ratio 0.77%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 8.3%
3 years 12.1%
5 years 19.8%
Since launch 19%

3. Aggressive Hybrid Fund

They invest predominantly in equity and equity related instruments. 65-80% of total assets in equity related instruments and 20-35% of total assets in debt instruments. Best mutual fund in this category is:

Principal Hybrid Equity Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹82
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,480 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Hybrid 35+65 Aggressive since its launch.
Age of the fund 5 years old
Expense Ratio 1.43%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 8.8%
3 years 17.7%
5 years 20.1%
Since launch 16.31%

4. Dynamic Asset Allocation or Balanced Advantage Fund

It is a hybrid mutual fund which changes its equity exposure based on market conditions. Best mutual fund in this category is:

ICICI Prudential Balanced Advantage Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹36.4
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹27,877 Cr
Riskometer Moderately High
Minimum SIP ₹100
Minimum SWP Not Supported
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Hybrid 50+50 Moderate Index since its launch.
Age of the fund 5 years old
Expense Ratio 0.99%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 6.9%
3 years 11.3%
5 years 15.9%
Since launch 13.8%

5. Multi-Asset Allocation

They invest in atleast three asset classes with a minimum allocation of 10% each, in all three. Foreign investment will be considered a separate asset class. Best mutual fund in this category is:

ICICI Prudential Multi-Asset Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹276.8
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹10,060 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Total Return (70), NIFTY Composite Debt (20) and London Gold (10) since its launch.
Age of the fund 5 years old
Expense Ratio 1.16%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 8.6%
3 years 15.6%
5 years 18.6%
Since launch 16.1%

6. Arbitrage Fund

This scheme follows an arbitrage strategy. The minimum investment in equity & equity related instrument is 65% of total assets. Best mutual fund in this category is:

Reliance Arbitrage Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹18.8
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹8,123 Cr
Riskometer Moderately Low
Minimum SIP ₹100
Minimum SWP ₹100
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.35%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 0.25%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 7.0%
3 years 6.8%
5 years 7.6%
Since launch 10.8%

7. Equity Savings

This scheme invests in equity, arbitrage and debt schemes. The minimum investment in equity related instruments is 65% of total assets and minimum investment in debt is 10% of total assets. Best mutual fund in this category is:

HDFC Equity Savings Fund – Direct – Growth

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹37.9
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹7,445 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Arbitrage TRI (40), NIFTY 50 Total Return (30) and CRISIL Short-Term Bond (30) since its launch.
Age of the fund 5 years old
Expense Ratio 0.28%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 7.9%
3 years 13.4%
5 years 12.3%
Since launch 10.8%

D. Solution Oriented Schemes

These types of schemes are particularly helpful for investors who are willing to create a fund for their retirement, child’s education or a marriage corpus.

These schemes have 2 categories of mutual funds.

1. Retirement Fund

This scheme has a lock – in for at least 5 years or till retirement age, whichever is earlier. Best mutual fund in this category is:

Franklin India Pension Plan – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹128.3
Plan Type Direct
Rating by Groww 3 Star
AUM (Fund Size) ₹421 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Composite Bond (60), NIFTY 500 TRI (40) since its launch.
Age of the fund 5 years old
Expense Ratio 1.56%
Exit Load Exit Load is 3%
Type  Open Ended

Returns per annum

Duration Returns
1 year 4.0%
3 years 8.7%
5 years 13.6%
Since launch 12.4%

2. Children’s Fund

This scheme has a lock-in for at least 5 years or until the child attains age of majority, whichever is earlier. Best mutual fund in this category is:

UTI Children’s Career Fund – Savings Plan – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹23.5
Plan Type Direct
Rating by Groww 3 Star
AUM (Fund Size) ₹3,775 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short Term Debt Hybrid 60+40 Fund since its launch.
Age of the fund 5 years old
Expense Ratio 1.70%
Exit Load If redeemed bet. 0 Year to 2 Year; Exit Load is 3%; If redeemed bet. 2 Year to 4 Year; Exit Load is 2%; If redeemed bet. 4 Year to 5 Year; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 5.1%
3 years 9.8%
5 years 12.2%
Since launch 12.1%

E. Other Schemes

These have 2 categories:

1. Index Funds/ ETFs

The minimum investment in securities of a particular index is 95% of total assets. Best mutual fund in this category is:

UTI Nifty Index Fund – Direct – Growth

Key Information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹74.3
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹920 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP Not Supported
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Total Return since its launch.
Age of the fund 5 years old
Expense Ratio 0.12%
Exit Load NIL
Type  Open Ended

Returns per annum

Duration Returns
1 year 13.5%
3 years 13.9%
5 years 15.3%
Since launch 12.8%

2. FoF’s (Overseas/Domestic)

Minimum investment in the underlying fund – 95% of total assets. Best mutual fund in this category is:

Edelweiss US Value Equity Offshore Fund – Direct

Key Information

Launch Date 7 August 2013
NAV (14 Sep 2018) ₹17.3
Plan Type Direct
Rating by Groww 3 Star
AUM (Fund Size) ₹46 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short Term Debt Hybrid 60+40 Fund since its launch.
Age of the fund 5 years old
Expense Ratio 0.87%
Exit Load If redeemed bet. 0 Month to 12 Month; Exit Load is 1%;
Type  Open Ended

Returns per annum

Duration Returns
1 year 24.1%
3 years 12.7%
5 years 11%
Since launch 11.3%

Things to Remember

There are a lot of factors you should look into before selecting a mutual fund scheme which will match your investment goals.

Mutual fund investors in India may disagree on strategies and fund choices but one of the few things that most would agree on is the fact that investing for the long-term is an ideal method to maximize potential gains.

Equity oriented mutual fund are best for long-term investment tenure and through Systematic Investment Plan (SIP). 

SIP is much better and safer option for investing in equity oriented mutual funds.

Read More: New Mutual Fund Categories: Find out Their Meaning, and If You Should Be Investing in New Categories


Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww