Best Mutual Fund Returns for 2021

Mutual Fund is an investment avenue that is formed when numerous individuals sharing the same idea come together and invest their money. The Mutual Fund scheme then invests in various financial instruments on behalf of these individuals and earns profit. There are various categories of Mutual Fund schemes that are designed to cater the diverse requirements of the individuals. The broad categories of Mutual fund schemes Equity Funds, Debt fund, and Hybrid Fund. In 2021, the performance of all scheme categories was good. The Mutual Funds were able to earn commensurate returns for their investors. So, let us look at the performance of these schemes for 2021.

Top Performing Equity Funds based on 2021 Performance

Top Performing Debt Funds based on 2021 Performance

Top Performing Hybrid Funds based on 2021 Performance

How to Select Best Mutual Funds?

The process of selecting best mutual funds are as follows.

• Investment Objective: Individuals do any investment to accomplish a particular objective. Therefore, it is important to decide why the investment is being done. Some of the objectives for which individuals invest in Mutual Funds are purchasing a house, purchasing a vehicle, Retirement planning, planning for marriage, and much more.

• Tenure, Expected Returns, & Risk-Appetite: Once you determine the investment objective, the next step is to determine the tenure of the investment along with expected returns and risk-appetite. Individuals should decide the tenure till which they need to invest. Along with tenure, individuals should also check for expected returns and risk-appetite. Determining the three parameters will help you decide the type of scheme that you can choose to invest.

• Check Details About Mutual Fund Scheme: After deciding the type of scheme to invest, individuals should understand about the scheme. People should check various aspects of the scheme such as the fund age, its AUM or asset size of the scheme, expense ratio, and fund performance. Along with these parameters, individuals should also check the credentials of the fund manager managing the scheme.

• Check the Credentials of Fund House: Apart from assessing the details of Mutual Fund scheme, individuals should also check the credentials of the fund house or the Asset Management Company (AMC). It is because, it is the fund house that is responsible for managing the schemes. As a result, the fund house is also responsible for the performance of the scheme.

• Review Your Investments Regularly: Just Investing is not enough. Individuals should not take a back seat after investing in Mutual Funds. They should review their investments regularly and in a timely manner so that they can earn maximum returns on their investments.