Top Mutual Funds Investment Plans in 2024

Looking to grow your wealth while keeping risk in check? The world of mutual funds offers a wealth of possibilities. Mutual funds or MFs are investment vehicles that allow investors to pool money with other investors. Well, choosing the right mutual fund in India can be really tough. There are thousands of them, and deciding on the top 10 mutual funds to invest in India or the absolute best one is no simple task. Therefore, to find the perfect mutual fund for you, we’ve tried to list out the best mutual funds to invest in 2024 so you can make a sound decision by considering how much risk you’re comfortable with and how long you plan to invest for.

What are the Best Mutual Funds?

A mutual fund is created when an asset management company (AMC) combines investments from both individual and institutional investors to acquire assets like stocks and bonds. Primarily, there are four types of mutual funds. They’re categorised as equity mutual funds, debt mutual funds, and hybrid funds, each with unique risk profiles and investment goals. So, when it comes to deciding the ‘best MF to invest’, there’s no one-size-fits-all answer. The right mutual fund for you hinges on your financial goals, your willingness to take risks, and how long you plan to invest.

For example, if you’re saving for your child’s higher education 15 years from now, equity mutual funds could be your top choice, given the long-term horizon. However, within equity funds, there are options like large-cap, mid-cap, and small-cap funds. Your choice should align with your risk tolerance; small-cap funds, for instance, carry more risk than large-cap funds, which invest primarily in stable, market-leading large companies.

Features of best mutual fund

Investing in mutual funds is a strategic choice for individuals seeking to grow their wealth through the stock market without directly picking stocks or bonds. Managed by professional fund managers, these funds pool money from many investors to buy a diversified portfolio of securities, offering a balanced mix of risk and potential returns. Here are key features that make mutual funds an attractive option for investors:

• Mutual funds offer diversification by pooling money to invest in a variety of securities, reducing risk.
• Managed by professional fund managers who aim to maximise returns and adhere to the fund’s investment strategy.
• Provides liquidity, allowing investors to buy or sell their shares of the fund at the current market value.
• Transparent investment option with regular disclosures on fund holdings, performance, and costs.
• Offers a range of investment choices, including equity, debt, and hybrid funds, catering to different investor profiles and objectives.
• Systematic Investment Plans (SIPs) enable disciplined investing by allowing regular, small investments.
• Tax efficiency through benefits like the Equity Linked Savings Scheme (ELSS) offers tax deductions under certain conditions.

Best Performing Mutual Funds to Invest in 2024

Now let’s have a look at the best Indian mutual funds that you might be interested in investing in 2024. 

Top 10 Mutual Funds in Equity MFs

Here is a list of the top 10 equity mutual funds. 

Equity Mutual Funds	Sub Category	AUM (In cr.)	CAGR 3Y (%)
Aditya Birla SL PSU Equity Fund	Thematic Fund	2,678.68	42.17
Quant Small Cap Fund	Small Cap Fund	17,193.09	42.10
Quant Infrastructure Fund	Sectoral Fund - Infrastructure	2,207.59	41.92
ICICI Pru Infrastructure Fund	Sectoral Fund - Infrastructure	4,574.47	39.03
SBI PSU Fund	Thematic Fund	1,762.63	38.76
HDFC Infrastructure Fund	Sectoral Fund - Infrastructure	1,475.54	37.36
Quant Mid Cap Fund	Mid Cap Fund	4,857.91	37.29
Invesco India PSU Equity Fund	Thematic Fund	842.37	37.13
Nippon India Power & Infra Fund	Sectoral Fund - Energy & Power	3,884.94	35.89
Motilal Oswal Midcap Fund	Mid Cap Fund	7,972.05	34.72

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the best performing equity mutual funds in India in the list is from 25th January, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Best Equity Mutual Funds in India – 2024

Here are the details of the top 10 mutual funds in India in 2024. 

Aditya Birla SL PSU Equity Fund: The Aditya Birla Sun Life PSU Equity Fund primarily invests in equity and equity-related securities of Public Sector Undertakings (PSUs). This fund aims to provide long-term capital appreciation by investing in a diversified portfolio of PSU stocks. The fund has achieved a Compound Annual Growth Rate (CAGR) of 42.17%.

Quant Small Cap Fund: This mutual fund focuses on investing in small-cap companies, aiming to generate high returns by identifying and investing in small companies with the potential for growth. The CAGR for this fund is 42.10%.

Quant Infrastructure Fund: Investing in companies operating in the infrastructure sector, this fund seeks to benefit from the growth potential of infrastructure development in India. Its CAGR stands at 41.92%.

ICICI Pru Infrastructure Fund: Primarily investing in the infrastructure sector, this fund aims to capitalize on growth opportunities in infrastructure development. The CAGR for the ICICI Prudential Infrastructure Fund is 39.03%.

SBI PSU Fund: Focusing on Public Sector Undertakings, this fund aims for long-term capital appreciation with a diversified PSU stock portfolio. It has a CAGR of 38.76%.

HDFC Infrastructure Fund: This fund invests in the infrastructure sector to benefit from India’s infrastructure growth. Its CAGR is 37.36%.

Quant Mid Cap Fund: Targeting mid-cap companies, this fund seeks capital appreciation by investing in mid-sized companies with growth potential. The CAGR for the Quant Mid Cap Fund is 37.29%.

Invesco India PSU Equity Fund: Investing in Public Sector Undertakings, this fund aims for long-term capital appreciation through a diversified PSU stock portfolio. It has achieved a CAGR of 37.13%.

Nippon India Power & Infra Fund: By investing in the power and infrastructure sectors, this fund looks to capitalize on growth opportunities. Its CAGR is 35.89%.Motilal Oswal Midcap Fund: This fund focuses on mid-cap companies, aiming for capital appreciation by identifying mid-sized companies with growth potential. The CAGR for this fund is 34.72%.

Top 10 Mutual Funds in Hybrid MFs

Here is a list of the best hybrid mutual funds.

Hybrid Mutual Funds	Sub Category	AUM (In cr.)	CAGR 3Y (%)
Quant Multi Asset Fund	Multi Asset Allocation Fund	1,676.99	32.49
ICICI Pru Equity & Debt Fund	Aggressive Hybrid Fund	31,196.16	25.28
Quant Absolute Fund	Aggressive Hybrid Fund	1,787.77	24.91
Bank of India Mid & Small Cap Equity & Debt Fund	Aggressive Hybrid Fund	656.95	24.73
HDFC Balanced Advantage Fund	Balanced Advantage Fund	77,011.15	23.89
ICICI Pru Multi-Asset Fund	Multi Asset Allocation Fund	34,703.84	23.74
JM Aggressive Hybrid Fund	Aggressive Hybrid Fund	167.39	22.75
Edelweiss Aggressive Hybrid Fund	Aggressive Hybrid Fund	1,353.32	20.23
Mahindra Manulife Aggressive Hybrid Fund	Aggressive Hybrid Fund	1,033.50	19.41
UTI Aggressive Hybrid Fund	Aggressive Hybrid Fund	5,291.85	18.44

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the best performing hybrid mutual funds in India in the list is from 25th January, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Best Hybrid Mutual Funds in India 2024

Here’s in brief about top 10 hybrid mutual funds in India.

Quant Multi Asset Fund
The Quant Multi Asset Fund is a diversified mutual fund that invests across various asset classes, aiming to provide investors with a balanced portfolio. This strategic allocation across different asset types allows the fund to cater to those seeking a combination of growth, income, and stability, which is underscored by its Compound Annual Growth Rate (CAGR) of 32.49%.

ICICI Pru Equity & Debt Fund
The ICICI Pru Equity & Debt Fund embodies a hybrid approach by investing in both equity and debt instruments, blending the growth potential of equities with the stability of fixed income. This balanced approach aims to deliver both capital appreciation and income, achieving a CAGR of 25.28%.

Quant Absolute Fund
Focused on delivering absolute returns, the Quant Absolute Fund operates with the goal of achieving positive returns regardless of market conditions. This mutual fund seeks opportunities across markets and assets, striving for performance that leads to a CAGR of 24.91%.

Bank of India Mid & Small Cap Equity & Debt Fund
Investing in a mix of mid and small-cap companies across equity and debt markets, the Bank of India Mid & Small Cap Equity & Debt Fund aims to capitalize on the growth potential of smaller companies while balancing risk with debt investments. Its investment strategy has led to a CAGR of 24.73%.

HDFC Balanced Advantage Fund
The HDFC Balanced Advantage Fund is a dynamic asset allocation fund that adjusts its equity and debt composition based on prevailing market conditions. This flexibility aims to maximise returns during favourable market periods and mitigate risk during downturns, evidenced by its CAGR of 23.89%.

ICICI Pru Multi-Asset Fund
As a diversified investment option, the ICICI Pru Multi-Asset Fund spreads its investments across multiple asset classes. This strategy is designed for investors looking for balanced growth opportunities, achieving a CAGR of 23.74%.

JM Aggressive Hybrid Fund
The JM Aggressive Hybrid Fund combines equity and debt investments in an aggressive hybrid format, targeting growth through equities and stability through fixed income. This approach has culminated in a CAGR of 22.75%.

Edelweiss Aggressive Hybrid Fund
Aiming for capital appreciation, the Edelweiss Aggressive Hybrid Fund invests in a blend of equity and debt securities. This hybrid fund seeks to balance the growth potential of equities with the risk moderation of debt, achieving a CAGR of 20.23%.

Mahindra Manulife Aggressive Hybrid Fund
Designed for long-term capital growth, the Mahindra Manulife Aggressive Hybrid Fund invests in a mix of equity and debt. This strategy aims to provide investors with growth opportunities and risk-balanced returns, reflected in its CAGR of 19.41%.

UTI Aggressive Hybrid Fund
The UTI Aggressive Hybrid Fund focuses on capital appreciation by investing in a balanced mix of equities and debt instruments. This aggressive hybrid strategy aims to leverage the growth potential of equities while mitigating risks through debt, resulting in a CAGR of 18.44%.

Top 10 Mutual Funds in Tax Saver

Here is a list of the best tax saving mutual funds. 

Tax Saving MFs	AUM (In cr.)	CAGR 3Y (%)
SBI Long Term Equity Fund	20,085.15	27.18
Quant ELSS Tax Saver Fund	7,769.92	32.10
Bank of India ELSS Tax Saver	1,149.51	24.65
ITI ELSS Tax Saver Fund	279.40	19.34
Motilal Oswal ELSS Tax Saver Fund	3,119.69	22.99
Bank of India Midcap Tax Fund-Sr 2	33.65	21.27
Bank of India Midcap Tax Fund-Sr 1	63.37	21.95
SBI LT Advantage Fund-VI	276.60	22.38
HDFC ELSS Tax saver	13,440.72	25.96
ICICI Pru LT Wealth Enhancement Fund	37.06	22.65

Note: The data on the best performing tax saver mutual funds in India in the list is from 25th January, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Best Tax-Saving Mutual Funds in 2024

SBI Long Term Equity Fund
The SBI Long Term Equity Fund, an equity-linked savings scheme (ELSS), is designed to offer investors both tax-saving benefits and the opportunity for long-term growth by primarily investing in equities. It has achieved a Compound Annual Growth Rate (CAGR) of 27.18%, reflecting its growth orientation while providing tax advantages.

Quant ELSS Tax Saver Fund
Specializing in equity investments for wealth creation, the Quant ELSS Tax Saver Fund is an ELSS fund that offers investors tax benefits. With a focus on maximising returns through equity markets, this fund has posted a CAGR of 32.10%, making it an attractive option for investors looking for tax-efficient growth opportunities.

Bank of India ELSS Tax Saver
The Bank of India ELSS Tax Saver is a mutual fund aimed at generating long-term capital appreciation while offering tax-saving opportunities through equity investments. This approach has led to a CAGR of 24.65%, providing a blend of growth and tax efficiency.

ITI ELSS Tax Saver Fund
Targeting both capital growth and tax benefits, the ITI ELSS Tax Saver Fund invests in the equity market as an equity-linked savings scheme. Its investment strategy, focused on equities, has yielded a CAGR of 19.34%, demonstrating its potential for growth and tax savings.

Motilal Oswal ELSS Tax Saver Fund
The Motilal Oswal ELSS Tax Saver Fund is an ELSS fund that emphasises tax savings and long-term wealth creation through equity investments. This fund has achieved a CAGR of 22.99%, reflecting its commitment to offering investors growth opportunities within a tax-efficient framework.

Bank of India Midcap Tax Fund-Sr 2
Focusing on mid-cap companies, the Bank of India Midcap Tax Fund-Sr 2 is a tax-saving fund that seeks capital appreciation while providing tax benefits. By investing in mid-cap stocks, this fund has realised a CAGR of 21.27%, targeting investors interested in growth and tax advantages.

Bank of India Midcap Tax Fund-Sr 1
Another offering from the Bank of India, the Midcap Tax Fund-Sr 1 focuses on mid-cap oriented investments for capital growth and tax-saving benefits. This strategy has resulted in a CAGR of 21.95%, catering to those looking for growth potential in mid-cap stocks with tax efficiency.

SBI LT Advantage Fund-VI
Combining equity investments with the goal of long-term growth, the SBI LT Advantage Fund-VI also offers tax benefits under Section 80C. This fund has posted a CAGR of 22.38%, aimed at investors seeking growth and tax savings over the long term.

HDFC ELSS Tax saver
The HDFC ELSS Tax saver is an equity-linked savings scheme focusing on tax savings and wealth creation through equity investments. With a CAGR of 25.96%, it presents an opportunity for investors to grow their wealth while benefiting from tax deductions.

ICICI Pru LT Wealth Enhancement Fund
Designed for long-term wealth enhancement, the ICICI Pru LT Wealth Enhancement Fund invests in a diversified equity portfolio, aiming for capital appreciation and tax benefits. This approach has led to a CAGR of 22.65%, highlighting its potential for long-term growth and tax efficiency.

Top 10 Debt Return Mutual Funds

Here is a list of top 10 debt return mutual funds.

Debt Return MFs	Sub Category	AUM (In cr.)	CAGR 3Y (%)
ICICI Pru Overnight Fund	Overnight Fund	11,581.91	126.48
Bank of India Credit Risk Fund	Credit Risk Fund	140.61	42.03
Aditya Birla SL Medium Term Plan	Medium Duration Fund	1,887.26	13.35
Bank of India Short Term Income Fund	Short Duration Fund	82.25	12.49
UTI Credit Risk Fund	Credit Risk Fund	406.00	11.71
Baroda BNP Paribas Credit Risk Fund	Credit Risk Fund	163.42	11.12
UTI Dynamic Bond Fund	Dynamic Bond Fund	507.92	10.88
DSP Credit Risk Fund	Credit Risk Fund	194.97	10.37
UTI Medium to Long Duration Fund	Medium to Long Duration Fund	303.49	10.03
Nippon India Strategic Debt Fund	Medium Duration Fund	119.85	9.97

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the best performing debt return mutual funds in India in the list is from 25th January, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Best Debt Mutual Funds in India in 2024

ICICI Pru Overnight Fund
The ICICI Pru Overnight Fund offers investors a low-risk option by primarily investing in overnight securities with very short-term maturities. This focus on overnight assets aims to provide a safe and liquid investment, reflected in its extraordinary Compound Annual Growth Rate (CAGR) of 126.48%, indicating a unique performance characteristic likely influenced by specific market conditions or an anomaly in the calculation.

Bank of India Credit Risk Fund
Aiming for higher returns, the Bank of India Credit Risk Fund invests in securities with credit risk exposure, targeting lower-rated securities to achieve its objectives. This approach seeks to capitalise on the higher yield potential of these investments, resulting in a CAGR of 42.03%, which highlights its success in navigating the credit risk landscape.

Aditya Birla SL Medium Term Plan
Investing in a mix of debt and money market instruments with medium-term durations, the Aditya Birla SL Medium Term Plan offers a balance between risk and return. This strategic mix aims to provide stable returns over medium terms, achieving a CAGR of 13.35%, suitable for investors looking for moderate growth with controlled risk.

Bank of India Short Term Income Fund
The Bank of India Short Term Income Fund focuses on fixed-income securities with short-term maturities, designed to provide stable returns over a shorter investment horizon. With a strategy targeting short-term instruments, this fund has posted a CAGR of 12.49%, appealing to investors seeking relatively quick returns with lower risk.

UTI Credit Risk Fund
Focusing on credit risk exposure, the UTI Credit Risk Fund seeks to generate higher returns by investing in lower-rated debt instruments. This strategy, aimed at capitalising on the yield potential of credit risk assets, has led to a CAGR of 11.71%, reflecting its approach to risk and return.

Baroda BNP Paribas Credit Risk Fund
Emphasising investments with credit risk exposure to achieve enhanced returns, the Baroda BNP Paribas Credit Risk Fund invests in lower-rated fixed-income securities. This focus on credit risk has resulted in a CAGR of 11.12%, indicating its performance in the credit risk segment.

UTI Dynamic Bond Fund
The UTI Dynamic Bond Fund dynamically manages its portfolio of fixed-income securities, adapting to changing market conditions and interest rate movements. This flexible approach has yielded a CAGR of 10.88%, showcasing its ability to navigate the complexities of the bond market effectively.

DSP Credit Risk Fund
Targeting investments with credit risk exposure for higher yields, the DSP Credit Risk Fund invests in lower-rated debt instruments. This strategy aims to benefit from the higher yield potential of these securities, achieving a CAGR of 10.37%, indicative of its performance in the credit risk domain.

UTI Medium to Long Duration Fund
Investing in medium to long-term fixed income securities, the UTI Medium to Long Duration Fund offers a balance between yield potential and interest rate risk. This investment approach has led to a CAGR of 10.03%, suited for investors looking for growth opportunities in the medium to long-term fixed income space.

Nippon India Strategic Debt Fund
Strategically investing in a diversified portfolio of debt and money market instruments, the Nippon India Strategic Debt Fund aims to optimise returns under varying market conditions. This strategic focus has resulted in a CAGR of 9.97%, reflecting its ability to manage and capitalise on the dynamics of the debt market.

Factors to Consider Before Investing in the Best Return Mutual Funds

There are many factors to consider before investing in the best mutual funds in India in 2024. Here is a list of factors you should consider: 

• Investment Goals: Determine your financial objectives, whether it’s wealth creation, retirement planning, or buying a house. Different funds, such as best mutual funds for SIP or best long-term mutual fund, align with different goals.
• Risk Tolerance: Assess how much risk you are comfortable with. High-return mutual funds, often synonymous with highest return mutual funds, come with higher volatility. Ensure your risk tolerance matches the fund’s risk profile.
• Time Horizon: Consider how long you intend to invest. Longer horizons may allow for the best mutual funds to invest for 1 year or even those targeted for longer durations, balancing risk and potential returns.
• Expense Ratios: Lower expense ratios mean more of your returns stay in your pocket. Top mutual fund companies typically offer competitive rates, which is crucial for maximising the best return on investment.
• Diversification: Spread your investments across various asset classes, such as best equity funds, best hybrid funds, or best large-cap mutual funds, to reduce risk. Portfolio diversification can enhance returns and protect your portfolio.
• Fund Manager: Research the top mutual funds to invest in by looking into the mutual fund scheme’s management. A skilled manager can significantly impact a fund’s performance.

How to Identify the Best Mutual Funds?

Once you’ve considered the above-mentioned factors, you can start to narrow down your choices. Looking for which are the best mutual funds to invest or specifically best mutual funds to invest right now, can lead you to mutual fund screening tools. 

Here are some additional tips for identifying the best mutual funds:

• Look for funds with a long track record of success: This doesn’t guarantee future results, but it does show that the fund has been able to generate returns over time.
• Consider the fund’s management team: Do the managers have a good track record? Are they experienced and qualified?
• Read the fund’s prospectus carefully: This will give you more information about the fund’s investment strategy, fees, and risks.
• Compare different funds before you invest: Don’t just choose the first fund you find. Take some time to compare different funds and find the one that’s right for you.

How to Invest in the Best Mutual Funds in India?

If you’re interested in investing in mutual funds in India, have a look following ways: 

• Direct Investment: The best way to invest in mutual funds can be direct investment. You can invest directly in mutual funds by opening an account with the Asset Management Company (AMC) that manages the fund. Visit their website or office, complete the necessary paperwork, and invest directly.
• Online Investment Platforms: Many online investment platforms and robo-advisors offer access to a wide range of mutual funds. 
• Banks and Financial Institutions: Most banks and financial institutions offer mutual fund investment services. You can visit a local branch, discuss your investment goals with a representative, and invest in funds that they recommend.
• Registered Investment Advisors: They can assess your financial situation, risk tolerance, and goals to recommend the best mutual funds and create a personalised investment strategy.
• Demat and Trading Accounts: If you have a Demat account for stock trading, you can often invest in mutual funds through the same platform. Many stockbrokers offer the option to invest in mutual funds alongside stocks.
• Systematic Investment Plans (SIPs): The best mutual funds for SIPs allow you to invest fixed amounts at regular intervals (e.g., monthly) in mutual funds. This method encourages disciplined investing and can be set up through most of the above-mentioned channels.

Who Should Invest in the Best Return Mutual Fund?

Investing in the best return mutual funds is suitable for individuals with a long-term investment horizon and a moderate to high-risk tolerance. These funds, like best performing debt mutual funds or best equity funds, may be ideal for those seeking higher potential returns and willing to weather market fluctuations. 

However, it’s crucial to align the choice of mutual fund with specific financial goals and risk comfort, as there is no one-size-fits-all approach. It’s advisable to consult with a financial advisor to determine the best mutual funds to invest based on individual circumstances.

Taxation of the Best Mutual Funds in India

All mutual funds’ dividends are included in your total income and subject to tax based on your income tax bracket. The taxation rate for capital gains from the sale of mutual fund units differs between mutual funds and depends on the holding period.

Tax implications, such as those on mutual fund returns, depending on the type of fund (e.g., equity mutual funds, debt mutual funds, hybrid mutual funds) and the duration of the investment, affecting the best returns you can achieve.

Equity Mutual Funds:

• Short-term capital gains (STCG): Equity mutual funds held for less than one year are taxed at a flat rate of 15% plus 4% cess, irrespective of your income tax slab.
• Long-term capital gains (LTCG): Equity mutual funds held for more than one year are taxed as follows:
  • LTCG up to ₹1 lakh: Tax-free
  • LTCG above ₹1 lakh: 10% plus 4% cess

Debt Mutual Funds:

• STCG: Debt mutual funds held for less than three years are taxed according to your income tax slab.
• LTCG: Debt mutual funds held for more than three years are taxed at 20% after indexation. Indexation takes into account the inflation over the holding period, which reduces the taxable capital gains.

Hybrid Mutual Funds:

The taxation rate for gains from selling balanced funds is determined by their equity exposure. When a balanced fund has an equity exposure exceeding 65%, it is taxed like an equity fund.

Advantages of Investing in Best Mutual Funds

Investing in mutual funds holds a myriad of advantages for individuals seeking to grow their wealth while managing risk. These collective investment vehicles are designed to offer a range of benefits that have been listed below: 

• Skilled Financial Management: Each fund manager is supported by a team of analysts and experts who conduct research and select the best-performing assets for inclusion in the fund’s portfolio. 
• Option to Invest Small Amounts: One of the most significant advantages of investing in mutual funds is the ability to spread investments over time using the SIP. You can even start investing for as low as ₹100 at regular intervals.
• Convenience: Mutual funds are a convenient way to invest. You can invest online or through a financial advisor.
• Transparency: Mutual funds are required to disclose their portfolio holdings and performance on a regular basis. This makes it easier for investors to track their investments and make informed decisions.
• Choice: There is a wide variety of mutual funds available to choose from, so if you’re looking for the best MF to invest now, find funds that match your investment goals and risk tolerance.

Risk Possessed by Best Mutual Funds

Here are some of the potential risks associated with the best mutual funds. 

• Market Risk: Mutual funds are subject to market fluctuations. The value of fund holdings can rise or fall based on the performance of the underlying assets, such as stocks and bonds.
• Credit Risk: Debt mutual funds may be exposed to credit risk if they hold bonds or other fixed-income securities. If the issuer of these securities defaults on payments, it can impact the fund’s value.
• Interest Rate Risk: Bond funds are sensitive to interest rate changes. When interest rates rise, bond prices tend to fall, potentially affecting the fund’s returns.
• Liquidity Risk: If a mutual fund’s assets are not easily tradable, it may face liquidity risk. This can make it challenging to redeem or sell fund units when needed.
• Management Risk: The skills and decisions of the fund manager and their team can significantly impact fund performance. If they make poor investment choices, it can affect returns.
• Asset Class Risk: Different types of mutual funds have varying degrees of risk. Equity funds are generally riskier than debt funds, and specialised funds may carry additional risks.

To Wrap It Up…

Mutual funds have proven to be a rewarding investment choice for Indian investors in recent years. Now that you know the highest return mutual fund, you can select the one that matches your investment objectives. Nonetheless, it’s essential to consider consulting a financial advisor before investing.

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