Mutual Fund Schemes in India: Types, Lists, and Top-Performing Funds You Should Know

One of the most in-demand investment modes is a mutual fund scheme. It pools money collected from diverse investors to invest in different stocks, bonds, or other securities. Mutual fund schemes maintained by professional asset management companies enable people to gain exposure to various assets without directly managing them. Since the risk appetite and investment objectives can vary from person to person, these schemes attract first-time and seasoned investors.

This article profoundly explores mutual fund schemes and ascertains the types of mutual fund schemes, mutual fund schemes list, popular options, best-performing schemes, and India’s latest mutual fund schemes.

What Are Mutual Fund Schemes?

A mutual fund scheme is an instrument for pooling funds from several investors to be invested in stocks, bonds, or other securities. The collected amount is then divided into units that the investor buys for an equity interest in the fund’s overall assets. Professional management refers to the decisions on what to buy, sell, or hold being made by professionals based on current market conditions and trends.

The primary characteristic of a mutual fund scheme is the diversification of risk. It spreads over a broad range that fewer investments cannot cover. Diversification reduces risks while investing in one asset. As a result, it serves as a cushion for downturns in the market. Mutual fund schemes have proven to be an accessible and convenient solution for the uninitiated. These would otherwise be unable to find time or appropriate expertise to manage individual stocks or bonds.

Types of Mutual Fund Schemes

Many types of mutual fund schemes focus on given financial goals and risk profiles. There are four types of mutual fund schemes, the first being equity funds.

1. Equity Funds

Equity funds are long-term investment schemes with a higher concentration of equity. Hence, they are high-risk, high-return schemes. Such funds assure the likelihood of returns in the long term but are vulnerable to market fluctuations. Thus, these funds are recommended for risk-takers who have invested a long time.

2. Debt Funds

These funds put investments in fixed-income securities like government bonds, corporate bonds, and debentures. Such funds provide returns much more stable than equity funds, though at lower growth potential. They suit a conservative investor who wants a steady income with less risk.

3. Hybrid Funds

The hybrid funds can combine both equity and debt investments so that the investor can build a balanced portfolio. They are seeking moderate returns and working within a constraint of risk. Hybrid funds are actually perfect for those investors who want to strike some level of growth along with income.

4. Money Market Funds

These funds invest in short-term debt instruments. They are nearly liquid and involve no material risk. They are best for conservative investors who demand safety with quick access to their money.

5. Index Funds

These track a specific market index like Nifty 50 or Sensex. Index funds replicate the performance of the index by investing in the shares comprising the index. They are cost-efficient and suitable for investors looking to take a passive approach towards investment.

6. Sectoral/Thematic Funds

The amounts track a particular theme or sector, for example, technology, health care, or green investment. Sectoral or thematic funds may allow earning money on growth in specific industries but at higher risk due to lower diversification.

7. Tax-Saving Funds or Equity-Linked Saving Schemes (ELSS)

The equities-linked savings scheme is another tax-saving fund that invests in equities. As per the Income Tax Act, section 80C offers up to ₹1.5 lakh tax relief in investments in ELSS. They are wholly apt for those who want to save on taxes while proceeding to reap prospects of equity growth.

Mutual Fund Schemes List

There are hundreds of mutual fund schemes, each with a different investment goal. Here is a list of the popular ones. The mutual fund schemes list may not be exhaustive; still, it has some pretty good mutual fund schemes:

1. Equity Funds:

• SBI Bluechip Fund
• Axis Bluechip Fund
• Mirae Asset Emerging Bluechip Fund

2. Debt Funds:

• HDFC Corporate Bond Fund
• SBI Magnum Income Fund
• ICICI Prudential Short-Term Fund

3. Hybrid Funds:

• ICICI Prudential Balanced Advantage Fund
• SBI Equity Hybrid Fund
• HDFC Hybrid Equity Fund

4. Index Funds:

• UTI Nifty Index Fund
• HDFC Index Fund – Nifty 50 Plan
• SBI Nifty 50 Index Fund

5. Tax-Saving Funds (ELSS):

• Axis Long-Term Equity Fund
• Mirae Asset Tax Saver Fund
• DSP Tax Saver Fund

These are few of the best mutual fund schemes as it caters to tax-saving funds through long-term equity growth according to the requirements.

Best Mutual Fund Scheme

The best mutual fund schemes can be defined based on several criteria; an investor’s short and long-term goals, risk tolerance, and time horizon are some critical criteria. However, only a few schemes have risen above the fray of their competitors and have thus been categorised as the best mutual funds.

1. Mirae Asset Large Cap: Fund invests in large-cap stocks with a consistently long-term solid return. Suitable for investors who have a moderate to high-risk tolerance.
2. Canara Robeco Bluechip Equity Fund: This is a stable fund with an investment in blue chip companies. Being an equity investment, it will serve as an excellent long-term investment.
3. Parag Parikh Flexi Cap Fund: It will hold the capacity to invest in different types of market capital and provide diversified exposure to the investor. It also benefits investors who are seeking flexibility in their equity investments.

The best mutual fund scheme investment is decided only after a review of the record of the fund, its expense ratio, and whether it suits the personal objectives of investing.

Latest Mutual Fund Schemes In India

The Indian mutual fund industry is vibrant and constantly changing, concerning new schemes launched to suit various investor needs. Some of the latest mutual fund schemes in India include:

1.  Axis CRISIL – IBX AAA NBFC Index- June 2027 Fund: This scheme is an investment by top-rated Non-Banking Financial Companies in AAA-rated bonds.
2. Baroda BNP Paribas Nifty200 Momentum 30 Index Fund: This index fund is directed to track Nifty200 Momentum 30, consisting of stocks with the best momentum quality.
3. HDFC Nifty Next 50 Index Fund: This scheme invests in the Nifty Next 50 index; it offers investment opportunities to companies not reachable within the Nifty 50 but with growth potential.

The recent mutual fund schemes in India are diversified investment options, hence drawing the attention of aggressive and conservative investors.

Conclusion

Mutual fund schemes have such a wide array that investments could be made in equities, debt, or both. Several mutual fund schemes provide different kinds of portfolios according to the risk profile and financial goals-from aggressive growth to capital preservation. Whether you’re hunting down best-performing schemes or the latest mutual fund schemes in India, there’s quite everything.

For those interested in meeting experts who can find the most appropriate mutual fund scheme for them, and will guide through what are the mutual fund schemes, SMC Global Securities is there to help them. The financial advisors at SMC Global Securities shall make sense of this complex scenario of mutual funds and provide them with individualised suggestions based on your specific objectives.

FAQs on Mutual Fund Scheme

1. What are mutual fund schemes?

A mutual fund is an investment vehicle that pools together money from various investors to invest in a diverse portfolio of stocks, bonds, or other securities. Mutual funds are a product of professional asset management companies.

2. What are the types of mutual fund schemes?

There are many types of mutual fund schemes: equityfunds, debt funds, hybrid funds, money market funds, index funds, sectoral/thematic funds, and ELSS, short for tax-saving funds.

3. How would I identify and choose the best mutual fund scheme to suit my needs?

You will depend on all factors, such as your financial goals, risk tolerance, and time horizon. One would also consider historical performance, expense ratio, and aligning with one’s investment objectives.

4. What are some of the popular mutual fund schemes in India?

The popular mutual fund schemes include SBI Bluechip Fund, HDFC Corporate Bond Fund, ICICI Prudential Balanced Advantage Fund, Axis Long Term Equity Fund, and Mirae Asset Tax Saver Fund.

5. Are new mutual fund schemes coming into India?

Yes. The Indian mutual fund industry continues to be changed with a relentless piling of new schemes that meet the changing needs of investors. You can keep up to date with the latest by looking at news on financial resources or by seeking information from your financial advisor.

Author: All Content is verified by SMC Global Securities.