Top Mutual Funds to Help Grow Your Wealth

Dawn Richard  |

Mutual Funds have triggered staggering fundamental changes impacting our lives and surroundings like never before. There are millions who are reaping a rich harvest of opportunities and then there are a set of bystanders watching in amazement, unaware of the long sweep of this theory of investment.

Mutual Funds: A-Pillar That Stands Tall

India has seen a tremendous flow of never ending investment opportunities for its people. An average Indian is made up of a belief to save and secure his or her future. It is this strong belief that has given various insurance companies an option to float the best possible mutual funds for investment. The idea of the mutual fund is to draw money from long-term investors and make it grow. Though there is always a possibility of risk involved yet the returns are good and can prove to be really fruitful if we take into account the long-term benefits out of it. And the best part is that these funds are registered by Security and Exchange Board of India which itself means that there is a regulatory authority which keeps a check.

Some of the Top Mutual Funds Which Are Available Today Are:

HDFC Mutual Fund offers a variety of mutual funds categorized in 13 different kinds. They are one of the largest fund managers of the country and have acquired Morgan Stanley business in 2014. HDFC Mutual Funds are categorized in the following types-

  • Equity Funds/Growth Funds
  • Capital Protection Oriented Scheme
  • Dual Advantage Fund
  • Rajiv Gandhi Equity Savings Scheme
  • Exchange Traded Funds
  • Fixed Maturity Plan
  • Retirements Savings Fund
  • Children’s Gift Fund
  • Liquid Funds
  • Debt Fund/ Income Fund
  • Fund of Fund Schemes
  • Annual Interval Fund – Series 1
  • Cancer Cure Fund

HDFC Mutual Fund Plans offer one of the best options to the users who look forward to having a secured future. As discussed, there is always an element of risk involved but still, the returns are pretty attractive and hence most of the mutual fund managers promote it. The above-listed plans are a mix of short-term bonds, long-term bonds, money markets, debts which intend to create an income for the investor.

Then there are options where investments are made in securities and come with a maturity of 91 days. This scheme is called HDFC Liquid Funds where the idea is to provide best returns with minimum risk.

Tax Benefits of Mutual Funds

When enrolled with HDFC Mutual Funds, an individual can avail tax benefits under the Tax Act 1961. HDFC Mutual Fund offers multiple tax saving mutual funds schemes and also comes with a swapping facility.

One of the most important benefits of this mutual fund is that it is very flexible; one can invest any magnitude of an amount. While starting HDFC Mutual Fund, individual just needs to furnish basic KYC documents and that’s about it. The range of HDFC Mutual Funds is elaborative and an individual with the help of the fund manager should zero down on the best option.

Next inline is Reliance Mutual Fund which has started to gather pace and is rated to be one of the top most mutual funds investment options. As of today, it manages the investment of more than 83 lakh investors. Various kinds of Reliance Mutual Funds that are available for investment are as follows-

Debt Funds is still the habit of saving amongst the investors. Though the returns offered are average but the amount of risk involved is very less. They are further classified into some major options like below-

  • Ultra-Short Debt Fund
  • Short Term Debt Fund
  • Monthly Income Plan
  • Long-Term Debt Funds
  • Dynamic Debt Funds

Equity Funds deal with the money and are completely dependent on the exchange of stocks and commodities. They are further classified into the following options-

  • Diversified Large Cap Fund
  • Exchange Traded Fund
  • Diversified Multi-Cap Fund
  • Sector Fund
  • Diversified Small Cap & Lid Cap Fund

Tax Saving Funds are majorly taken in order to save taxes. Their primary objective is to ensure that the money is saved and one does not end paying extra from the pocket.

Index Funds are completely based on the sentiments of the stock market. They are risk funds but some times can offer really good returns.

Arbitrage Funds invest more in equity funds and less in debt funds. They are one of the best mutual funds for those who are looking out to invest in the dynamic market.

Balanced Funds make equal investments in both, equity as well as debt funds. This ensures that the risk is balanced out.

International Funds are those where the investors can deal in foreign securities and they are comparatively risk-free as compared to directly investing in the international market.

Liquid Funds lets an investor invest in government schemes, bonds etc. They are the short-term funds and carry very less risk.

Gold Funds invests purely in gold or commodity or in companies that deal in gold mining and trading.

The above types of mutual funds offered by Reliance can be completely relied on. They have a very strong base of knowledgeable fund managers who can guide the investors accordingly.

ICICI Prudential Mutual Fund is one of topmost and genuine investment option available in India today. They have a strong base of fund managers spread across the country who give out a proper understanding of the range of products to the customers. One of the major reasons why they are the most preferred is because both ICICI and Prudential happen to be the best in business in their respective regions.

They have a diverse product portfolio that is well received by all. It has everything for everyone and is considered to be one of the best options to choose from. Be it the blue-chip fund or the value discovery fund, the returns offered are huge. The product portfolio of ICICI Mutual Fund is varied and immense. It is well to be noted that if the range of any mutual fund is huge, higher the investment options in it. ICICI Mutual Funds has a CRISIL rating which itself is the much-needed transparency that is required. Having a banking background has definitely helped in giving them the required client base and understanding of the product. One of the most well-known benefits of ICICI Mutual Funds is the diversified set of mutual funds it has. They have set of well-trained full-time fund managers that provide the best consultancy to the prospective customers and also are known for their post-sales service as well. This range of mutual funds also provides flexibility on payments and are said to be very user-friendly. One ends up paying as low as Rs.5000 to start this mutual fund with almost nil sales charges.

Some of the most important benefits of investing in ICICI mutual fund exposure are-

Volatile markets will never affect the investment.

One can withdraw the fund at will.

There is an element of risk diversification.

The portfolio is managed by experts and one can aim at getting tax advantages out of it.

A Hybrid fund is that fund where the investment is done in a mix of stocks and bonds. They offer investors a diverse portfolio and in fact, the investment includes not single but multiple asset classes. These funds offer varying level of risk tolerance. Initially known as balanced funds, they are suitable for investors seeking reasonable returns at less risk. This fund keeps the risk at bay and hence is popular among investors. In case of a hybrid fund, both debt and equity are equally distributed hence making it a pretty safe option to be a part of. Hybrid Funds are a mix of low and high-risk mutual funds investment. At times it is also felt that these funds invest more in equity than debt and hence makes it a better option for return on investment.

Mutual Funds Have Plenty to Offer

There are two sets of investors when it comes to mutual fund investments. The ones those are more averse to taking risks and others who want to invest risk-free. The beauty of mutual funds is that it offers both the sides to the investor. Most of the advisors give the best options based on the individual’s appetite to take risks. Stocks and Bonds are indeed the types of investment everybody looks into. One of the major reasons for mutual funds to prosper and become such a phenomenon is its association with stocks and bonds. The new breed of investors often ends up giving it a priority because of the transparency that they offer. Growing wealth is what one always dreams of. Mutual funds are open-ended investments, which mean that anybody can be a part of it. Any common investor can take it up and invest as much as he wants. This goes on to show how welcoming and trustworthy this option is since people end up recommending it to others because of its proven track record that has led to giving out frequent dividends.

DISCLOSURE: I love to do Long Term Investment.


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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