You should keep a tab on risks like credit risk, liquidity risk, interest rate risk, and duration risk when investing in a debt fund. One thing is now clear to most investors — debt funds are not risk-free.
The returns debt funds provide are lower than their equity-based counterparts or stocks. But, financial experts believe they have the potential to deliver higher returns than FDs – although, that's subject to how the market is performing. Contrary to popular belief, debt-based MF returns are market-linked.
| Scheme name | Inception date | Category |
|---|
| L&T Ultra Short Term Reg Cum | 19-01-1998 | Ultra Short Duration |
| ICICI Pru Corporate Bond Gr | 11-08-2009 | Corporate Bond |
| Kotak Bond S/T Reg Gr | 02-05-2002 | Short Duration |
| L&T Money Market Gr | 10-08-2005 | Money Market Fund |
5. Top 10 Best Debt Mutual Funds in India
| Fund name | 3-year returns | Ratings |
|---|
| Aditya Birla Sun Life Corporate Bond Fund Regular Plan Growth | 9.37% | 5 |
| HDFC Corporate Bond Growth | 9.26% | 5 |
| Axis Dynamic Bond Fund Growth | 9.63% | 5 |
| ICICI Prudential Long Term Bond Fund Growth | 9.73% | 5/5 |
1 lakh a year from ELSS mutual funds are exempt from income tax and long-term capital gains above Rs. 1 lakh are taxed at 10%. Corpus generated out of ELSS investment can also be used to fulfil your financial goals.
Long term capital gains upto Rs 1 Lakh is totally tax free. Tax on debt mutual funds - The minimum holding period for short term capital gains in debt funds is 3 years. Short term capital gains (if the units are sold before three years) in debt mutual funds are taxed as per applicable tax rate of the investor.
Debt: Medium to Long Duration. 5 Value Research 567 25-567 SBI Mutual Fund The scheme seeks to provide investors an opportunity to generate regular income through investments in debt and money market instruments such that the Macaulay duration of the portfolio is between 4 years and 7 years.
Top 10 Sbi Mutual Funds
| Fund Name | Category | 1Y Returns |
|---|
| SBI Consumption Opportunities Fund | Equity | 1.5% |
| SBI Magnum Ultra Short Duration Fund | Debt | 6.4% |
| SBI Magnum Midcap Fund | Equity | 22.9% |
| SBI Magnum Medium Duration Fund | Debt | 12.7% |
Top 5 Fund Families in 2020
- Vanguard. Vanguard takes top honors for 2020.
- BlackRock / iShares. BlackRock is best known for its iShares line of ETFs.
- Fidelity. Over the years, Fidelity has been home to many of the best mutual fund managers.
- T. Rowe Price.
- ProShares. If you are looking for leverage, ProShares provides a variety of ETFs.
Best SIP plans for 5 year investment
| Fund Name | 3-Year SIP Returns (%) | 5-Year SIP Returns (%) |
|---|
| Kotak Emerging Equities Fund (Regular) | 6.54% | 9.73% |
| INVESCO India Financial Services Fund (Regular) | 14.61% | 16.03% |
| SBI Focused Equity Fund (Regular) | 12.40% | 12.94% |
| Franklin Build India Fund (Regular) | 4.66% | 8.07% |
The Axis Bluechip Fund aims to outperform the benchmark with risk lower than the benchmark. Axis Bluechip Fund holds asset class benefits. Equity as an asset class holds the potential to beat inflation and generate long term wealth.
Best SIP Plans to invest in for 20 years
- HDFC growth and prudence fund.
- Mirae Asset Bluechip Fund.
- Franklin India Feeder.
- SBI Small Cap Fund.
- Motilal Oswal Equity Fund (long term)
- HDFC Hybrid Equity Fund.
- Aditya Birla Sun Life Fund.
- ICICI Prudential fund.
A Blue chip fund is a term used to indicate well-established and financially sound companies. Blue chip funds invest in stocks of those companies that have a credible track record with sound financials along with regular dividend payments and profitability over the years.
Top 10 Large Cap Mutual Funds
| Fund Name | Category | 1Y Returns |
|---|
| Kotak Bluechip Fund | Equity | 11.9% |
| HSBC Large Cap Equity Fund | Equity | 9.6% |
| ICICI Prudential Bluechip Equity Fund | Equity | 8.3% |
| Axis Nifty 100 Index Fund | Equity | 5.1% |
Best SIP Investment Plans in India
| SIP Plans | Type | 3 Year |
|---|
| ICICI Prudential Equity & Debt Fund | Equity Fund | 11.11% |
| ICICI Prudential Value Discovery | Equity Fund | 7.34% |
| Kotak Standard Multicap Fund | Equity Fund | -1.28% |
| L&T India Prudence Fund | Balanced Fund | 10.03% |
Large-Cap Schemes
| Scheme Name | 5-Year Monthly SIP | 10-Year Monthly SIP |
|---|
| ICICI Pru Top 100 Fund (G) | Rs.9,41,591 | 18.43% |
| Quantum LT Equity Fund (G) – Direct Plan | Rs.9,15,695 | 17.27% |
| Reliance Growth Fund (G) | Rs.10,75,057 | 24.01% |
| SBI BlueChip Fund – Reg (G) | Rs.9,55,955 | 19.07% |
Pros & Cons of Axis Bluechip FundWith a 7-year return of 14.86%, the fund has outperformed the benchmark index (12.33%) and the category average (12.21%). This Scheme has an impressive track record of out-performance. The fund has proven to a dependable offering in this category.
7 common types of mutual funds
- Money market funds. These funds invest in short-term fixed income securities such as government bonds, treasury bills, bankers' acceptances, commercial paper and certificates of deposit.
- Fixed income funds.
- Equity funds.
- Balanced funds.
- Index funds.
- Specialty funds.
- Fund-of-funds.
Money market mutual funds = lowest returns, lowest riskThese are fixed-income mutual funds that invest in top-quality, short-term debt. They are considered one of the safest investments you can make.
Best Mutual Funds for Beginners
| Fund Name | Fund Category | 1Y Return (in %) |
|---|
| Axis Long Term Equity Fund | ELSS | -4.96 |
| Mirae Asset Large Cap Fund | Equity, Large-Cap | -15.16 |
| SBI Bluechip Fund | Equity, Large-Cap | -15.18 |
| Axis Focused 25 Fund | Equity, Multi-Cap | -6.23 |
As we mentioned earlier, if you are clear about your risk profile and have an investment horizon of 5-6 years as you want to invest in equity mutual funds, then, any time is right. Investing in mutual funds online is very simple and paperless.
Top Tips for Picking a Winning Mutual Fund
- Start With Your Goals and Risk Tolerance.
- Pay Attention to the Expense Ratio—It Can Make or Break You!
- Avoid Mutual Funds With High Turnover Ratios.
- Look for an Experienced, Disciplined Management Team.
- Find a Philosophy That Agrees With Your Own.
- Buy No-Load Mutual Funds.
Top 10 Long Duration Mutual Funds
| Fund Name | Category | Rating |
|---|
| Nippon India Pharma Fund | Equity | 5star |
| Axis Bluechip Fund | Equity | 5star |
| Parag Parikh Long Term Equity Fund | Equity | 5star |
| Axis Midcap Fund | Equity | 5star |
Therefore, when compared to in terms of risk, stocks happen to be far riskier than
mutual funds. Investing directly in
equity for a beginner is quite a tough task.
Stocks vs Mutual Funds – Which Gives Better Returns?
| Fund Name | SBI Magnum Multicap |
|---|
| 3-Year Return (%) | 12.62 |
|---|
| 5-Year Return (%) | 21.12 |
|---|
| 10-Year Return (%) | 12.77 |
|---|
With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.
Compounded Annualized Growth Rate Performance
| Last 1 Year | Last 3 Year |
|---|
| SBI Savings Fund | 6.04% | 6.86% |
| Scheme Benchmark: - NIFTY Money Market Index Benchmark | 5.46% | 6.69% |
| Additional Benchmark: - Crisil 1 Yr T-Bill Index Additional Benchmark | 6.22% | 6.89% |
Investing in mutual funds offer investors a variety of benefits such as liquidity, professional management, a tax benefit and diversification. Parents can choose according to the risk they are willing to take, return expectations, and other prospects.
Type of Funds Offered by SBI Funds Management Pvt. Ltd.
| Fund Name | 3 Year (%) | 5 Year (%) |
|---|
| SBI Banking & Financial Services Fund | 15.8 | NA |
| SBI Focused Equity Fund | 11.06 | 12.98 |
| SBI Bluechip Fund | 5.32 | 9.52 |
| SBI Infrastructure Fund | 5.74 | 9.14 |
- Best Mutual Funds for Retirement Planning- Details. 1.Reliance Large Cap Fund – Direct – Growth. 2.ICICI Prudential Bluechip Equity Fund – Direct – Growth. 3.Mirae Asset India Equity Fund – Direct – Growth. 4.HDFC Small Cap Fund – Direct – Growth. 5.UTI Nifty Index Fund – Direct – Growth.
- Conclusion.
In a nutshell, mutual funds are safe. Investors should not be worried about short-term fluctuations in the returns while investing in them. You should choose the right mutual fund, which is sync with your investment goal and invest with a long-term horizon.
4. Top 5 SBI Mutual Funds
| Top 5 SBI Mutual Funds | 1yr | 3yr |
|---|
| SBI Banking & Financial Services Fund-Regular Plan (Equity Banking) | 16.1 | 18.74 |
| SBI Bluechip Fund (Equity large Cap) | 9.86 | 11.48 |
| SBI Consumption Opportunities Fund (Equity FMCG) | 28.26 | 19.43 |
| SBI Dynamic Asset Allocation Fund (Hybrid Asset Allocation Fund) | 10.36 | 9.58 |
The
fund currently has an Asset Under Management(AUM) of ₹22,421 Cr and the Latest NAV as of is ₹45.08. The
SBI Bluechip Fund Growth is rated Moderately High risk.
11. 5Y Returns are lower than the category average returns.
| Fund Name | | Returns 3Y |
|---|
| Axis Bluechip Fund | 5star | 13.1% |
| Mirae Asset Large Cap Fund | 5star | 7.2% |
SBI Bluechip and Reliance Large Cap are two of the best
mutual funds in the large-cap category. All you seasoned investors know that large-cap
funds are probably the safest
funds in the equity category.
Returns.
| Year | Returns |
|---|
| Year 1 | 9.5% |
| Year 3 | 11.30% |
| Year 5 | 21.80% |
