Invest inMutual Funds With US
Mutual funds help you grow your wealth and achieve your financial goals by offering the potential to generate inflation-beating returns over the long term.
What are Mutual Funds?
It is an investment vehicle where multiple investors come together and pool their funds. This pooled money is then invested by the fund manager across various asset classes including equity, debt, gold, and other securities to generate returns.
Equity Mutual Fund
Equity mutual funds primarily invest in stocks of companies listed on stock exchanges. They aim to generate capital appreciation over the long term and are suitable for investors with a higher risk appetite and a long-term investment horizon of 5+ years.
Debt Mutual Fund
Debt mutual funds invest in fixed-income instruments like government bonds, corporate bonds, and money market instruments. They are relatively lower risk and provide stable returns, making them suitable for conservative investors.
Types of Funds
Mutual funds are classified into equity, debt, hybrid, and solution-oriented funds. Within each category, sub-types like large-cap, mid-cap, small-cap, gilt, liquid, and balanced advantage funds offer investors a wide spectrum of risk-return profiles.
Affordability
You can start your investments in these funds with as low as ₹500. Therefore, you don't need large sums to start investing.
Diversification
As mutual funds invest in a basket of stocks, bonds, etc., you can own a diversified portfolio even with a small investment amount.
Well Regulated
Mutual fund schemes are regulated by the SEBI. The tight regulations ensure transparent processes and protect the investors' interests.
Professionally Managed
Your money is managed by professional money managers who have years of investing experience.
Liquidity
Mutual Funds offer superior liquidity compared to some of the other instruments as you can buy and sell them anytime you want.
Returns
Historically, mutual fund returns have been higher than the returns delivered by other traditional investment options like Bank FDs, RDs, PPF, etc.
Ways to Invest in Mutual Funds
SIP (Systematic Investment Plan)
SIP allows you to invest a fixed sum at regular intervals. It is one of the most recommended ways to invest in mutual fund schemes as it is convenient and helps you average out the cost at which you buy units.
Lumpsum
When you make a one-time investment, it is called lumpsum. Lumpsum investments are generally done when people have a big sum like bonuses or payments from a sale of an asset.
Top Performing Mutual Funds
ICICI Prudential BHARAT 22 FOF Scheme
EquityHDFC Mid-Cap Opportunities Fund – Direct Plan
Mid-CapSBI Nifty Index Fund – Direct Growth
IndexAxis Small Cap Fund – Direct Plan Growth
Small-CapNippon India Large Cap Fund – Direct Growth
Large-CapTypes of Mutual Funds Based on Asset Class
Mutual funds in India are classified into different categories based on the asset class they invest in.
Equity Mutual Funds
Equity funds invest a majority of their assets in stocks. These funds are classified into different categories based on the market cap of the stocks they invest in.
Types of Equity funds:
Large-Cap Funds
These funds invest at least 80% of their assets in the top 100 companies by market capitalization.
Mid-Cap Funds
These funds invest at least 65% of their assets in the next 150 (101st to 250th) companies ranked by market capitalization.
Small-Cap Funds
Such funds invest at least 65% of their assets in companies ranked 251 and above by market capitalization.
Multi-Cap Funds
These funds invest at least 25% of their assets in each of the large, mid, and small-cap stocks.
Debt Mutual funds:
Equity funds invest a majority of their assets in stocks. These funds are classified into different categories based on the market cap of the stocks they invest in.
Types of Equity funds:
Large-Cap Funds
These funds invest at least 80% of their assets in the top 100 companies by market capitalization.
Mid-Cap Funds
These funds invest at least 65% of their assets in the next 150 (101st to 250th) companies ranked by market capitalization.
Small-Cap Funds
Such funds invest at least 65% of their assets in companies ranked 251 and above by market capitalization.
Multi-Cap Funds
These funds invest at least 25% of their assets in each of the large, mid, and small-cap stocks.
Hybrid Funds
Hybrid funds invest in a mix of asset classes, including equity, debt, or gold. There are multiple categories based on how much they allocate across different asset classes.
Types of Hybrid funds:
Aggressive Hybrid
These funds have to invest at least 65% of their assets in equities while it can't exceed 80%. The rest goes into debt.
Multi-Asset Allocation
These are hybrid funds that invest at least 10% of the total of their assets across at least three asset classes.
Dynamic Asset Allocation
Also known as Balanced Advantage Funds, these funds can go 0-100% in equities or debt based on predefined asset allocation models.
Arbitrage Funds
These funds generate returns by using opportunities of price differences of securities in different markets.
Frequently Asked Questions
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You can start a SIP with as little as ₹500 per month. It's a great way to build a habit of saving and investing systematically.