Without a doubt, the year 2020 was one of the most volatile phases the equity market has gone through since the great depression of 2018, thanks to the covid-19 pandemic and the followed lockdown. Even still, the market has held up nicely with both S&P BSE Sensex and Nifty 50 gaining 14.8% and 14% respectively owing to strong liquidity flow in the market.
Yup, even with the second surge, things still seem pretty rosy for the mutual fund market going forward. To help you capitalize on this momentum, here are the top 10 mutual fund schemes to invest in 2021 for great returns.
But wait!
Top Reasons to Invest in Mutual Funds Instead of Stocks
While stocks do offer top returns, they can be pretty risky, especially nowadays. They also require more expertise & attention from the investor. Mutual funds, on the other hands, are relatively safer & don’t require to be a market hawk 24/7 either
Likewise, here are three more reasons to invest in Mutual funds in 2021;
1. Transparent Professional Management
Mutual funds are professionally managed, with experts handling every move. It also transparent with audited records for security and easier evaluation.
2. Diversified Portfolio
Mutual funds come in many varieties, ranging from large-cap, small-cap, mid-cap, focussed to Sector funds like Banking, metals, Parma, the list goes on. This allows you to build a risk-less diversified portfolio with lesser cost.
3. High Liquidity
Mutual funds generally stay liquid, meaning that you can easily and quickly withdraw or reinvest your money as you see fit whenever you want.
Top 10 Mutual Funds to invest in Covid-19 Pandemic – Less Risky yet with great returns
Without any further delay, let’s look at the list of mutual funds that you can invest in this pandemic.
#1 Mirae large Cap fund
The Mirae large-cap scheme is ideal for those looking to invest for a longer period. Which will primarily focus on large-cap stocks.
Category: large-cap
Since Launch: 04/04/2008 – 15.48% returns
Reasons to invest in Mirae large Cap fund
- Extensive stock selection options
- Investment approach
- Though large caps, there are also a few conviction midcap ideas
#2 Axis Bluechip Fund
The Axis Blue chip fund is a long-term investing solution and is aimed at high rollers. The scheme has excellent growth history & is sure to offer good returns.
Category: Large-cap
Since Launch: 05/01/2010–12.81% returns
Reasons to invest in Axis Bluechip Fund
- Active, high [performance management
- High-quality stock selection
- Compared to similar completion, this fund has consistently performed well
#3 Motilal Oswal Focused 25 Fund
The Motilal Oswal focused fund is best recommended for investors who are experienced and is ready to take on selective, risky bets with high return chances. It has a stellar past history and can be highly rewarding to those who love to play the long game.
Category: Focused
Since Launch: 13/05/2013 – 14.52% returns
Reasons to invest in Motilal Oswal Focused 25 Fund
- Consistent returns along with above-average loss control
- The fund’s top 5 holdings are HDFC Bank, HDFC Corp.Ltd, TCS, ICICI Bank, Kotak Mahindra bank
- 25 investment ideas with high conviction
#4 Kotak Emerging Equity Fund Regular Plan
Based on past performance & peer comparison, the Kotak emerging equity fund is one of the best mid cap investment offerings out there. It has consistently given good, stable growth returns, even during these pandemic years.
Category: Mid Cap
Since Launch: 30/03/2007 – 13.34% returns
Reasons to invest in Kotak Emerging Equity Fund Regular Plan
- Excellent management
- High performing, consistent growth returns
- High conviction portfolio
#5 Mirae Asset Midcap Fund
The Mirae asset mid cap fund mostly invests in medium-sized companies, the sort that keeps a stable growth, offering consistent returns.
Category: Mid Cap
Since Launch: 29/07/2019 – 34.25% returns
Reasons to invest in Mirae Asset Midcap Fund
- Investment options with established businesses
- Growth-oriented strategies
- Works with emerging sectors/businesses that have the potential for growth
#6 Kotak Small Cap Fund
For smaller investors looking to limit loss risk, the Kotak small cap fund seems a pretty compelling choice. Being small cap with a focus on mid-tier companies, there is plenty of high returns to be had, both in the short and long term.
Category: Small Cap
Since Launch: 24/02/2005 – 16.72% returns
Reasons to invest in Kotak Small Cap Fund
- Sector-wise, the portfolio composition is very good
- Focuses mainly on domestic businesses
- Wonderful current growth positioning with expected high growth
#7 SBI Banking And Financial Services Fund
With healthy multi-cap investment options, the SBI banking and financial services fund offer room for high growth & reliability as its past performance clearly proves. The fund is fast performing hence it’s best for investors familiar with handling macro trends.
Category: Banking
Since Launch: 26/02/2015 – 13.93% returns
Reasons to invest in SBI Banking And Financial Services Fund
- Consistent past performance
- The fund’s ability to control losses in a falling market is particularly high
- Allows for tactical, flexible investment strategies
#8 ICICI Prudential Technology Fund
Yet another fund targeting the top growing IT sector, the ICICI prudential technology fund is suitable for investors looking to make large investments & is ready to work for their gains. There is a risk of moderate to low level of losses here though.
Category: IT industry
Since Launch: 03/03/2000 – 12.09% returns
Reasons to invest in ICICI Prudential Technology Fund
- Tactical, flexible investment choices and strategies
- For stability, the fund mostly invests in tech, communication, and engineering sectors
- Well-positioned across market capitalization
#9 Tata India Consumer Fund
Offering investment options in consumer-facing companies, the Tata India Consumer fund offers chances of excellent returns both short & long term. It’s perfect for investors trained in macro trends and isn’t afraid to take risks time and again.
Category: Consumption
Since Launch: 28/12/2015 – 15.26% returns
Reasons to invest in Tata India Consumer Fund
- Works with industry titans like Hindustan Unilever Ltd., ITC Ltd., Dabur India Ltd., Tata global, etc…
- GARP model portfolio
- Makes for excellent and consistent returns, especially in the long run
#10 DSP Healthcare Fund
With the pandemic, the Pharma sector has shown to be a game-changer for making quality investments – and the DSP healthcare fund is one of the best. The fund invests in some big names & even beyond the quarantines; there is huge growth potential here.
Category: Pharma
Since Launch: 30/11/2018 – 34.92% returns
Reasons to invest in DSP Healthcare Fund
- Impressive past performances
- Invests with industry leaders like Cipla Ltd., Lupin Ltd., Dr. Reddy’s Laboratories Ltd., etc…
- Perfect and sensible for the pandemic era investments
#11 ICICI Prudential Pharma Healthcare And Diagnostic Fund
With the pandemic, the Pharma sector has shown to be a game-changer for making quality investments – and the DSP healthcare fund is one of the best. The fund invests in some big names & even beyond the quarantines; there is huge growth potential here.
Category: Pharma
Since Launch: 30/11/2018 – 34.92% returns
Reasons to invest in ICICI Prudential Pharma Healthcare And Diagnostic Fund
- The Pharmaceutical foundation gives this fund scheme a massive advantage in these times
- Exit load comfort
- Ideal for both short and long term investors
#12 Aditya Birla Sun Life Pharma And Healthcare Fund
While it’s wise to avoid single sector funds, the ICICI Prudential Pharma Healthcare & Diagnostic Fund & its Pharma investing options are well worth all the risks. It’s especially valuable if you’re a risk-ready investor with training on handling macro trends.
Category: Pharma
Since Launch: 13/07/2018 – 26.36% returns
Reasons to invest in Aditya Birla Sun Life Pharma And Healthcare Fund
- With the pandemic resurgence, the Pharma industry is on the up and up
- Exit load comfort
- Recent trend performance has been pretty impressive
#13 Axis ESG Equity Fund
The Aditya Birla Sun life Pharma and healthcare fund is best suited for well-trained & experienced investors who can handle the risks involved with big investments. The past results of this fund have also been nothing short of impressive.
Category: Pharma
Since Launch: 10/07/2019 – 37.39% returns
Reasons to invest in Axis ESG Equity Fund
- Invests in high quality, consistently well-performing businesses
- Fund holding
- Has close investment ties with multinational companies
Final Words
To put it bluntly, none of these mutual fund schemes can make you a millionaire overnight. Rather, they can help you still enjoy reliable, sizable returns in these haphazard times. With minimal investment & risk, these schemes are a great way to earn a bit while you keep safe at home.
If you want to know more about these impressive mutual fund schemes, please let us know and we will help you invest smartly.
In the meantime, keep safe and wear a mask, my friend.