# What are Mutual Funds?
Mutual Funds are investment vehicles for both investors and companies. They provide capital to companies and returns to investors.
# What do Mutual Funds do?
Mutual Funds invite investments from investors and invest them in strong companies ( equity or debt ) or Government securities. They give profit in return to investors. They allot units of schemes according to the current NAV of the schemes.
# How many types of Mutual Funds are there?
Mutual Funds are of many types. The main ones are 1. Equity Mutual Funds 2. Debt Mutual Funds. Equity schemes invest in shares of different companies, whereas Debt schemes invest in bonds of companies.
# How much return do Mutual Funds give?
Mutual Funds give excellent returns compared to saving accounts or fixed deposits. In the long run, equity schemes provide greater returns than the debt schemes do. The long-term investment in these schemes can give compounding returns.
# Can we reduce Income Tax with investments in Mutual Funds?
Yes, we can reduce the income tax by investing in ELSS mutual funds. This reduction is on investments up to Rs 1.50 lakhs.
# Is investment in Mutual Funds safe?
Yes, your investment in Mutual Funds is always very safe. Mutual Funds are closely monitored by the Government watchdog the SEBI.
# Are there any mutual funds that have given multi-bagger returns?
Yes, there are many mutual funds which have given multi-bagger return over the last 20 years. They are:
1. Nippon India Growth Fund: It has delivered 27 percent return annually over the last 20 years, multiplying the money 117 times. Rupees one lakh invested in 2001 has become 1.2 crore now.
2. Franklin Prima Fund: It has delivered 26 percent return over the last 20 years. Rupees one lakh invested in 2001 has become Rupees one crore now.
3. ICICI Pru Technology Fund: It has given 24 percent return over the last 20 years. Rupees one lakh has become 74 lakh rupees now.
4. SBI Magnum Global Fund: It has compounded 24 percent over the last 20 years. One lakh has become 74 lakh rupees now.
Large & Mid-cap Funds
The Best Mutual Funds
1. Quant Tax Plan – Growth
2. Canara Robeco Equity Tax Saver - Growth
3. BOI AXA Tax Advantage Fund – Growth
4. Mirae Asset Tax Saver Fund - Growth
1. Canara Robeco Blue-chip Equity Fund - Growth
2. IDBI India Top 100 Equity Fund - Growth
3. Franklin India Blue-chip Fund - Growth
4. Axis Blue-chip Fund - Growth
5. Edelweiss Large Cap Fund - Growth
1. Mirae Asset Emerging Blue-chip Fund – Growth
2. SBI Large & Mid-cap Fund – Growth
3. Edelweiss Large and Mid-Cap Fund – Growth
4. BOI AXA Large & Mid-Cap Equity Fund - Growth
1. PGIM India Mid Cap - Growth
2. Quant Mid Cap - Growth
3. Kotak Emerging Equity - Growth
1. BOI AXA Small Cap - Growth
2. TATA Small Cap - Growth
3. Nippon India Small Cap - Growth
4. Kotak Small Cap - Growth
1. SBI Focussed Equity - Growth
2. IIFL Focussed Equity - Growth
3. Sundaram Focussed - Growth
4. Axis Focussed 25 - Growth
1. PGIM Flexi Cap - Growth
2. UTI Flexi Cap - Growth
3. Canara Robeco Flexi Cap - Growth
1. DSP Natural Resources and New Energy - Growth
2. BOI AXA Manufacturing and Infra - Growth
3. Invesco India infra - Growth