Top 10 Mutual Funds in India for High Returns

Open Ended Scheme are those from which an investor can enter and exit anytime they like . They are highly liquid in nature . These Mutual funds are available for purchase through the Asset Management Company Only .

Close Ended Scheme are those have a fixed no of units and have restriction on entry into the fund .

Does Open Ended Scheme are trade in Stock Market ?

No Open Ended Scheme are not traded in the stock market .

What are the different types of scheme in mutual funds ?

On the Basis of Market Capitalization there are three categories of mutual funds .

Large Cap Mutual Fund –

Mid Cap Mutual Fund –

Small Cap Mutual Fund –

What is Market Capitalization ?

For Market Capatalization of a Company is the total market value of all its share being traded in stock market .

For Making the list of the mutual fund companies falling under these categories , Mutual fund share follow the list uploaded by the Association of Mutual fund in India ( AMFI ) . The list shall be updated every six month on 30^th June and 31^st December .

Types of Mutual Fund In India

Equity Mutual Funds

Debt Mutual Funds

Hybrid Mutual Funds

Solution – oriented Mutual Funds

Other Mutual Funds

Equity Mutual Funds are of different types . Here is a brief introduction of these Equity Mutual funds.

Multi Cap Funds – this is open ended and invests across combination of large , mid and small cap funds .
Large Cap Funds – this scheme is open ended and majorly invest in large cap stocks. Minimum 80 percent of the total asset of large cap funds should be invested in equity and equity related instruments of Large Cap Companies .
Large and Mid – Cap Funds – this scheme is open ended and invest in both large and mid cap stocks .
Mid Cap Funds – this scheme is open ended and invests in Mid – Cap stocks .
Small Cap Funds – This scheme is open ended invests in Small Cap Stocks
Dividend Yield Fund – This scheme is Open – ended and invests predominantly in dividend yielding stocks .
Value Stocks – This scheme is open ended and it follow a value investment strategy . This means that the Fund focuses on three types of stocks – Under Performing stocks and Stock with a low P/E Ratio .
Stocks of companies of emerging sectors – which show potential for rapid growth in future .
Contra Fund – This scheme is Open – ended and it follows a contrarian investment strategy . This means the Fund invest against the ongoing market trends .

A Fund can be either a value fund or a contra fund .It can not follow both the strategy at the same time .

Focused fund – It is a open ended scheme and invest in a maximum of 30 stocks while focusing on a certain level of market capatalization .
Sectoral Fund / Thematic Fund – This scheme is open ended and invest in a particular sector or define a theme around which its investment revolve.
Equity linked saving scheme ( ELSS ) – This scheme is open ended , with a statutory lock – in – period of 3 years and tax benefits under section 80c of the Income tax act.

Debt Mutual Fund – Under this there are variety of Funds are available of investment .

What is Macaulay Duration ?

Macaulay Duration – weighted average term for maturity of the cash flow from a bond .Portfolio managers use Macaulay duration to manage their portfolio. It is an valuable tool for the fixed income investor .

Overnight Fund- This is an open ended scheme that invests in Fixed Income securities with a maturity of one – day .
Liquid Fund – Open ended scheme that invest in debt and money market instruments with a maturity of up to 91 days .
Ultra short duration Fund – This is an open ended scheme which invests in debt and money market instruments . The Macaulay duration of the portfolio should be from Three to Six month .
Low Duration Fund – This is an open ended Fund which invest in money market and debt instruments . The macaulay duration of the portfolio should be more than 7 years .
Money Market Fund – This is an open ended scheme which invests in money market instruments with a maturity of up to 1 years .
Short Duration Fund – This is an open ended scheme which invest in money market and debt instruments . The Macaulay duration of the portfolio should be between 1 to 3 years .
Medium Duration Fund – This is an open ended scheme which invest in money market and debt instuments . The Macaulay period of the portfolio should be between 3 to 4 years .
Medium to long duration Fund – This is an open ended fund in money market and debt instruments . The Macaulay duration of the portfolio should be between 3 to 4 year .
Long duration Fund – This is an open ended Fund , which invests in money and debt instruments . The Macaulay duration of the portfolio should be more than 4 year .
Dynamic Bond Fund – This is an open ended dynamic debt fund scheme . This scheme invest across different types of duration fund .
Corporate Bond Fund – This is an open ended scheme that predominantly invests in highly – rated corporate Bonds . Minimum 80 percent of its total assets should be invested in only the highest rated corporate bond .
Credit Risk Fund – This is an open ended scheme that invests in those bonds which are ranked below the highest – rated corporated Bonds .
Banking and PSU Fund – This is an open ended scheme that invests in the debt instruments of banks – PSUs and public financial institutes . Minimum 80 percent of its total assets should be invested in the debt instuments of the above – mentioned types of organisations .
Gilt Fund – This is an open ended scheme that invests in governments securities across different duration types . Minimum 80 percent of its total assets should be invested in government securities .
Gilt Funds with 10 year constant duration – This is an open ended debt securities with a constant maturity of ten years . Minimum 80 percent of its total assets should be invested in government securities with a Macaulay duration of ten years .
Floater Funds – This is an open ended scheme which predominantly invests in floating rate instruments . A floating rate indicates that the interest rate offered by the debt instrument doesnot offer a fixed rate of interest over the life of the debt instruments .

HYBRID FUNDS –

Conservative Hybrid Funds – This is an open ended hybrid scheme that invests predominantly in debt instruments .
Balanced Hybrid Funds – This is an open ended Hybrid mutual fund scheme which has balanced investments between debt and equity . No Arbitrage is permitted in this scheme .
Aggressive Hybrid Funds – This is an open ended scheme that focuses more on equity investments .
Dynamic Asset Allocation or Balance Advantage Fund – This scheme is an open ended dynamic asset allocation fund . This scheme adjust its investment frequently to suit the ongoing market conditions .
Multi Asset Allocation Fund – This is an open ended scheme and it focuses on investing in different types of asset classes.
Arbitrage Fund – This is an open ended scheme that focuses on arbitrage opportunities . This means that the scheme profit from the difference in price between the stock and the derivatives market to generate returns .
Equity Saving Fund – This is an open ended scheme that invests in debt , equity and arbitrage opportunities .

Solution Oriented Fund –

Childeren’s Fund – This scheme is an open ended fund for investment , for children having a lock in for at least five years or till the child attains age of majority , whichever is earlier .
Retirement Fund – This scheme is an open ended Fund which is retirement solution oriented , having a lock – in for at least five years or retirement age.

Other Scheme –

Index Fund or( ETFs ) – Also known as Exchange traded funds or ETFs , an index funds shows investment in the securities of a particular index which is being tracked or replicated .
Funds of Funds ( FoFs ) – The fund invest in the units of other mutual fund instead of investing in the stock directly .