Top Mutual Funds

Invest in a mutual funds to grow your wealth

1.) Large Cap Funds

Name of Fund 5 Year Returns (p.a.) Scheme Category
Kotak Bluechip Fund 14.24% Large Cap
Axis Bluechip Fund 13.50% Large Cap
ICICI Prudential Bluechip Fund12.90% Large Cap
Mirae Asset Large Cap Fund13.76% Large Cap
SBI Bluechip Fund14.01% Large Cap
These funds invest minimum 80% of its assets in large/bluechip companies.These funds are less volatile as they invest in index heavy weights.

What are large cap funds?

Large cap funds are one of the types of various mutual funds with over 80 percent of its corpus in large scale companies. These companies are the market players and are highly reputed. The size of a company is decided on three major factors namely, trust, reputation, and its strength. A company that prevails all three factors falls under large-scale companies. These are the well-established companies with an outstanding track-record.

What are the main features of large cap funds?

A couple of critical features of large cap funds include stability, and dividend payouts. As larger companies have good amount of stability, funds do not fluctuate much. They can withstand a slowdown unlike a small or medium sized company, since they are the market players. However, large-scale companies do not have a higher growth rate as they are already established. But, they offer convincing dividends to its shareholders, which can act as a motivating factor for investors.

2.) Mid Cap Funds

Name of Fund 5 Year Returns (p.a.) Scheme Category
DSP Midcap Fund 17.52% Mid Cap
L&T Midcap Fund16.70% Mid Cap
Aditya Birla Sunlife Midcap Fund17.20% Mid Cap
SBI Magnum Midcap Fund17.49% Mid Cap
Sundaram Midcap Fund18.98% Mid Cap
These funds invest minimum 65% of its assets in mid size companies and you should invest for a minimum time horizon of 5 years.

What are Mid cap funds?

Mid-cap funds are the funds that explicitly invests in mid-sized companies. Mid-cap funds are said to have a higher growth rate as compared to the other two funds. This is because mid-sized companies have a higher growth rate as they are not as established as large-scale companies. Whereas, it has lower volatility than small-cap funds and higher than that of large-cap funds. The mid-cap segment offers a wide range of options for its investors.

What are the main features of Mid cap funds?

Diverse in nature : Mid-cap funds vary in terms of risk and returns. Some companies might be entering into large segment, offering more stability. Whereas, some might have just come out of the small-cap segment, offering more growth.

Moderate risk : Mid-cap funds are moderately volatile. Hence, these possess moderate risk.

Growth opportunity : Mid-cap funds provide a high opportunity of growth and have enough space to boost their profits, productivity, and market share.

3.) Small Cap Funds

Name of Fund 5 Year Returns (p.a.) Scheme Category
SBI Small Cap Fund 21.45% Small Cap
HDFC Small Cap Fund18.60% Small Cap
DSP Small Cap Fund19.50% Small Cap
Kotak Small Cap Fund19.89% Small Cap
Sundaram Small Cap Fund22.60% Small Cap

These funds invest minimum 65% of its assets in small cap companies. The minimum investment horizon is 10 years.

What are Small cap funds?

Small-cap funds are the equity-related instruments invested in small sized companies. One of the rules of SEBI (Securities and Exchange Board of India) says that a fund is said to be small-cap when at least 80 percent of its corpus is invested in small-cap companies. Small-scale companies possess a higher level of risk than both, large and medium scale companies. However, as we say, higher risk is associated with higher returns. Hence, many investors find small-cap funds as a good source of return for their investments.

What are the main features of Small cap funds?

Risk and return : As small-scale companies have a high scope of growth, they possess high risk with great returns.

Ideal long-term investment : Small-cap funds can be purchased for a minimum amount yielding high returns, if invested for long-term.

Bear and bull market : Small-cap funds tend to outperform during bull market, but performs low during a bear market.

4.)Tax Saving Funds (ELSS)

Name of Fund 5 Year Returns (p.a.) Scheme Category
Axis Long Term Equity Fund 14.30% ELSS
IDFC Tax Saver Fund 12.67%ELSS
Franklin India Taxshield Fund12.90%ELSS
DSP Tax Saver Fund13.86% ELSS
Kotak Tax Saver Scheme13.90%ELSS
You can invest in ELSS funds for tax savings u/s 80c of income tax act with a lock in of 3 years.It is one of the best options to save tax with a growth of investment amount.

What do you mean by debt funds?

A debt fund is a fund that invests in bonds or other debt securities. Apart from debt funds, they are also known as bond funds. The instruments that a bond fund invests in are corporate and government bonds, money market instruments, corporate debt securities, T-Bills etc.

What are the benefits of investing in debt funds?

Low cost structure: The overall management cost of debt funds is lower than that of equity funds. SEBI has incorporated the upper limit for this to be 2.25% of the overall assets.

Stable and Higher Returns : The returns in debt funds are stable and higher when compared to traditional options such as fixed deposits, savings bank account, etc.

High Liquidity : Debt funds are generally considered as an option to fixed deposit as both of them provide a steady income over time. FDs usually have a lock-in period ,unlike debts funds that are more liquid in nature when compared to other investment options.You can do pre mature withdrawl in FD subject to pre payment penalty which leads to reduction in yields.

Can an FD holder park their savings into debt funds? Explain?

FD is one of the safest investment options available in the market. However, if FD holder is willing to take low-risk, debt fund can be an ideal option for him. A debt fund offers different funds for different horizons. They also invest in different papers based on their credit ratings. A debt funds with AAA securities is a good option for FD holders as this is the safest papers available in the market for investments.These are ideal for investors willing to take risk for slightly higher rewards.

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