“Best mutual funds to invest in 2021 in India”

**Title: The Best Mutual Funds to Invest in 2021 in India: Your Comprehensive Guide**

**Introduction**

Welcome to our comprehensive guide on the best mutual funds to invest in 2021 in India! Navigating the world of investing can be a daunting task, but fear not, for we have compiled a list of top-performing mutual funds that could potentially help you grow your wealth this year.

**Understanding Mutual Funds**

* A mutual fund is an investment vehicle that pools money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.
* They are managed by professional fund managers who make decisions based on market trends and the fund’s investment objectives.

**Why Invest in Mutual Funds in 2021?**

* Diversification: Mutual funds provide a simple way to invest in a diverse range of assets, thus reducing risk.
* Professional Management: Fund managers have the expertise and resources to make informed decisions on your behalf.
* Affordability: Minimum investment amounts are usually low, making it accessible for small investors.

**Top Performing Mutual Funds in 2021**

**Equity Funds**

1. **Axis Long Term Equity Fund:** A large-cap fund with a focus on long-term capital appreciation.
– Consistently high returns, outperforming its benchmark over the past five years.
– Invests in blue-chip companies like TCS, HDFC Bank, and Infosys.

2. **SBI Small Cap Fund:** A small-cap fund that invests in companies with a market capitalization below 3000 crores.
– High return potential due to its focus on small but growing companies.
– Managed by one of the country’s leading asset management companies, the State Bank of India.

**Debt Funds**

1. **Aditya Birla Sun Life Credit Risk Fund:** A credit risk fund with a moderate-to-high risk profile.
– Offers attractive returns in comparison to other debt funds due to its focus on high-yielding corporate bonds.
– Managed by Aditya Birla Sun Life Asset Management Company, one of India’s leading AMCs.

2. **DSP Banking and PSU Fund:** A debt fund that invests in banking and public sector undertaking (PSU) stocks and their instruments.
– Provides stable returns with a focus on safety.
– Managed by DSP Mutual Fund, known for its strong track record in debt fund management.

**Hybrid Funds**

1. **Mirae Asset India Equity Hybrid Scheme:** A hybrid fund that balances equity and debt investments to offer capital appreciation with low risk.
– Managed by Mirae Asset Global Investments, a leading global asset manager.
– Invests in a mix of large-cap equities, government securities, and corporate bonds.

**Frequently Asked Questions (FAQs)**

1. **Q:** What is the minimum investment amount for mutual funds?
– **A:** The minimum investment amount varies depending on the fund house and the specific scheme. However, it can be as low as INR 500 in some cases.

2. **Q:** Are mutual funds safe to invest in?
– **A:** Mutual funds are generally considered a safe investment due to their diversification benefits. However, they are not risk-free and the value of your investments can fluctuate based on market conditions.

3. **Q:** How do I choose the right mutual fund for me?
– **A:** Consider factors such as your financial goals, risk tolerance, and investment horizon when choosing a mutual fund. You may also want to consult with a financial advisor.

**Conclusion**

Investing in mutual funds can be a smart choice for those looking to grow their wealth in 2021. By understanding the market, choosing the right funds, and staying patient, you could potentially reap substantial returns over time. Remember, always do your due diligence and consult with a financial advisor before making any investment decisions.

Happy Investing!