Best mutual funds 2021

Before starting with the topic, first let us know and have a basic knowledge about, what is mutual funds.

Mutual fund is an investment fund that pools money from many  investors to purchase securities and it is an open end professionally managed fund.

 Mutual fund is formed when an asset management company (AMC) pools investments from various individual and institutional investors to purchase securities. 

The asset management company ( AMC), they have fund manager to manage investments from investors. If we say in short, mutual funds club investment from different and various investors to invest their money in bonds, stocks etc.

Now, by the above mentioned definitions, we can have some knowledge about mutual funds.

So, what are the best mutual funds to invest in 2021. Let's have a look:

• Axis Bluechip fund

Fund type- large cap

AUM(crores)- Rs.12,717

3 years return- 8.25%

Shreyash Devalkar is the Current Fund Manager of Axis Bluechip Fund Direct Plan Growth fund. The fund currently has an Asset Under Management(AUM) of ₹15,945 Cr and the Latest NAV as of is ₹33.81.

The past performance is quite impressive as with a 7-year return of 14.86%, the fund has outperformed the benchmark index (12.33%) and the category average (12.21%). 

•Axis small cap fund

Fund type- small cap

AUM(crores)- Rs.2,169

3 years return- 2.20

The fund manager of Axis Small Cap fund, Anupam Tiwari, who has been managing the fund since October 2016 says that the outperformance of the fund can be attributed to the stock selection strategy.

The past performance shows that fund has 86.73% investment in indian stocks of which , 14.32% is in mid cap stocks, 65.79% in small cap stocks.

•Motilal Oswal Mid cap 30 fund

Fund type- Mid cap

AUM(crores)- Rs.1,415

3 years return- -7.81%

The past performance shows that fund has 94.54% investment in indian stocks of which 14.24% is in large cap stocks, 60.84% is in mid cap stocks, 14.16% in small cap stocks.

I.  Mr. Gautam Sinha Roy

Mr Roy comes with extensive experience and expertise and has been in the mutual fund management domain for over 11 years. He has handled Market Strategy, Product Development, Corporate Investments at the Motilal Oswal Asset Management Company.

II.  Mr. Anubhav Srivastava

Mr. Srivastava brings with him over 18 years of experience in the Financial Services sector, having education qualifications from the IIM-Ahmedabad and the University of Westminster.

III.  MR. ABHIROOP MUKHERJEE

With over 4 years of experience in the area of Trading Fixed Income Securities, Mr. Mukherjee has a strong presence in the Motilal Oswal Asset Management Company.

•DSP Tax saver fund

Fund type- ELSS

AUM(crores)- Rs.5,407

3 years return- -1.01%

Rohit Singhania.

Managing this fund since July 2015.

The past performance shows that fund has 92.63% investment in indian stocks of which 57.36% is in large cap stocks, 17.48% is in mid cap stocks, 9.25% in small cap stocks.

How one can select the best mutual funds for investment?

All investors want to end up with the best mutual funds which gives them higher returns. The entire selection process has to be guided by three basic pointers i.e. your life goals, risk profile and investment horizon.

 These are the three main factors which are important for investing in mutual funds

Any type of investment, should be made after considering one's personal life goals.

A long-term objective cannot be funded with a short-term scheme.

And one should always keep in mind that risk and return go hand in hand.