21 Best Mutual Funds for 2021 – Mutual Fund via SIP route is one of the best investment options for the novice as well as a professional investor. You can get mutual funds for every financial goal. Mutual funds give multiple benefits to the investors such as high returns, the flexibility of SIP, professional management, diversification, etc.
Although mutual funds offer multiple benefits and higher returns, it is difficult to find out good mutual fund for investment. 44 mutual funds houses are operating in India. The count of mutual funds offered by these fund houses is more than 2000+. You need to shortlist mutual funds on various parameters and returns. This requires a lot of time and energy. To help you I am here with 21 Best Mutual Funds for Investment 2021 via SIP. This list contains mutual funds from large-cap, mid-cap, small-cap, multi-cap, ELSS schemes.
In the last year 2020, I have also recommended mutual funds. A few of them have generated magnificent returns details are given below.
- Axis Blue Chip Fund – Growth – Direct – 11.69%
- Canara Robeco Bluechip Equity Fund – 15%
- Axis Mid Cap Fund – 18%
- SBI Small Cap Fund – 20%
- Axis Long term equity fund – 12%
Similar to last year, here is a list of the top 21 best mutual funds for investment in 2021. If you are planning to invest in a mutual fund for the long term you should consider these funds.
Shortlisting method for Mutual Fund –
Category of Funds – The first factor for the shortlisting is a category of funds like large-cap, small-cap, mid-cap, ELSS, debt, balance, etc. Shortlisting is given here for every fund category.
Fund performance – Fund performance is the second important shortlisting factor. Here research is done to find out best-performing fund 3-5 years.
Fund Rating – Fund rating is an important factor for shortlisting. Higher the fund rating better is fund. I have considered the rating given by CRISIL and Value Research. The fund rating above 3 stars is considered.
Fund Manager Expertise and Experience – A Fund manager is the person who decides on buying, selling, or holding the stock in the mutual funds. The returns of the fund depend on the decision taken by the fund manager and its expertise.
Holdings – Another factor for the shortlisting of Best Mutual fund is fundholding. Fundholding with good blue-chip stocks or making an investment in stocks that are likely to appreciate in the future.
Expense Ratio – Expense ratio is one of the important factors that affect mutual funds return. A higher expense ratio means a lower return. All the funds given below are with low expense ratio.
Scheme and Asset Size – Scheme type and asset size is another important factor while selecting funds. All funds selected here are higher in asset size – 100 Cr or above.
Based on the above parameters the Best Mutual Funds SIP to Invest for 2021 are given below.
21 Best Mutual Funds for Investment in 2021 – 22
Top 3 Large Cap Mutual Funds for 2021
#1 Axis Bluechip Fund
Axis Bluechip Fund is five star rated large-cap mutual fund for investment in 2021-22. This fund has given very good returns to the investors in the last five years. This fund was recommended by use in last year list also. As the name indicate this fund invest in bluechip stocks such as HDFC Bank, Infosys, Bajaj Finance, TCS, etc. It is managed by an experienced fund manager. This fund is beating benchmark returns consistently.
#2 Canara Robeco Bluechip Equity Fund
Canara Robeco Bluechip Equity Fund is next in the best mutual funds list. Canara Robeco fund is a recommended fund for medium to long term investment. In the last five years, this fund has given 80% returns to the investor. This fund is given five-star rating. It is managed by an experienced fund manager.
#3 Kotak Blue Chip Fund Growth
Kotak Blue Chip Fund Growth is one of the best large-cap funds for investment. Kotak Blue Chip Fund has generated magnificent returns for the investors in the past. This fund is beating benchmark returns over the past few years. It is managed by an experienced fund manager. Overall it is a good fund for investment.
Top 3 Multicap Funds for 2021
#4 UTI Equity Fund
UTI Equity Fund is Multicap fund for investment. It is a four star rated fund. The expense ratio of this fund is low. The investment portfolio of this fund is very good. If you are looking for diversification and good returns over the long term you can invest in this fund.
#5 Parag Parikh Long Term Equity
Parag Parikh Long Term Equity is a true multi-cap fund that invests in large-cap, mid-cap, and small-cap stocks. This fund is beating the benchmark and giving consistently good returns to the investors. In the last five years, this fund has generated 100% absolute returns for the investors. This fund also invests money in foreign equities.
#6 Canara Robeco Equity Diversified Fund
Canara Robeco Equity Diversified Fund is five star rated fund. This fund follows the bottom up investment style by identifying companies with a strong competitive position in good business. This fund has a strong stock portfolio and it is managed by an experienced fund manager.
Top 5 Best Mid & Small Cap Mutual Funds for 2021
#7 Axis Mid Cap Fund
Axis Mid Cap Fund is one of the best mid-cap funds for investment. The rating of this fund is five star. The past performance history of Axis Mid Cap Fund is very good. In the last five years, this fund has generated more than 88% returns. This fund is continuously beating benchmark returns. The expense ratio of this fund is average.
#8 DSP Mid Cap Fund
DSP Mid Cap Fund is the next fund in the mid-cap small-cap category. DSP Mid Cap Fund is managed by an experienced fund manager. The fund performance is very good. The expense ratio of this fund is low. One can invest in this fund for a medium to long term perspective.
#9 Kotak Emerging Equity Growth
Kotak Emerging Equity Growth fund is three star rated mid cap fund. This fund has generated exceptionally well performance in past ten years. This fund has very good portfolio mix of mid cap and small cap stocks. The expense ratio of this fund is comparatively low.
#10 SBI Small Cap Fund
SBI Small Cap Fund is one of the best performing small cap mutual fund. This fund has generated nearly 100% returns in last five years. It is four star rated fund. This fund invests more than 75% of fund in the small cap stocks.
#11 Axis Small Cap Fund
Axis Small Cap Fund is five star rated fund. This fund is managed by expert fund manager. This fund has given very good returns for the investors. You can invest in this fund with long term perspective.
Best Hybrid Mutual Funds for 2020
#12 SBI Equity Hybrid Fund
SBI Equity Hybrid Fund is aggressive hybrid fund. This fund is moderately high risk fund. This fund make investment in equity and debt. This fund has given good returns to the investors.
#13 IDBI Hybrid Equity Fund
IDBI Hybrid Equity Fund is aggressive hybrid mutual fund. This fund has 3-star rating. Expense ratio of this fund is slightly high. However, this fund has given average returns to the investors in the past.
#14 Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is five star rated fund. This fund has given magnificent returns to the investors in the past. This fund is managed by experience fund manager.
Best ELSS Funds for 2021
#15 Canara Robeco Equity Tax Saver
Canara Robeco Equity Tax Saver is best tax saver fund for investment. This fund invests in large cap, mid cap as well as small cap stocks. Stock portfolio selection of this fund is very good. It is moderately low risk fund
#16 Mirae Asset Tax Saver Fund
Mirae Asset Tax Saver Fund is five star rated fund. This fund has given very good returns to the investors in the past. The expense ratio this fund is very low. You can invest in this fund for long term.
#17 Axis Long Term Equity Fund
Axis Long Term Equity Fund is one of the best ELSS fund for investment. This fund is giving consistently good returns to the investors. You can plan to invest in this fund for long term perspective.
Top Best Debt Mutual Funds for 2021
#18 HDFC Corporate Bond Fund
HDFC Corporate Bond Fund is four star rated fund. This fund invests in debt and government securities. This fund is for risk averse investors.
#19 Axis Dynamic Bond Fund
Axis Dynamic Bond Fund is dynamic bond fund. It is low risk fund. This fund has given good returns to investors in the past.
#20 Kotak Dynamic Bond Fund
Kotak Dynamic Bond Fund is five star rated fund. This fund invests in Government securities, NCD and bonds. It is managed by expert fund manager. Risk averse investor can invest in this fund.
#21 ICICI Prudential Constant Maturity Gilt Fund
ICICI Prudential Constant Maturity Gilt Fund is gilt fund. This fund is suitable for Investors who want to invest money for longer duration but their first and only priority is safety of their investments.
The list of best mutual funds given above are based on performance and various other parameters. You can invest in these funds based on your financial goal, risk profile & investment objective. If you are new to mutual fund investment you should take help from mutual fund advisor.
Once investment is made in the mutual funds, you need to monitor it at regular interval and make changes in the portfolio from time to time.
Have you invested in any of the mutual funds mentioned above?
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Happy Investing!
