Mutual Funds

Top Mutual Fund Investment Plans With High Returns

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A mutual fund is an arrangement where several shareholders collectively purchase securities. Conditions such as age, risk tolerance, time window, and asset allocation also play a significant role in selecting the right plan. Investing in top mutual funds is an effective way to grow your wealth. However, for first-time investors, the process of choosing the perfect investment plan can be a scary task. This article will help you look at the kinds of mutual fund investment schemes that may be right for you. Additionally, we will provide a list of some of the top-performing mutual funds in India. Select the mutual fund investment plan that suits you best.

Types of Mutual Fund Schemes

As per SEBI guidelines, there are three types of mutual fund schemes. Each scheme serves a different customer objective, as listed below-

  • Equity Schemes: It is excellent for long-term investment goals but is highly volatile in the short term. Since equity involves dealing in stocks, it is a high-risk investment. Hence, if you have a longer investment horizon, i.e., willing to invest for a minimum of five years, equity schemes may be the right choice. 
  • Debt Schemes: It is also called Income Funds or Bond Funds. It deals with investments in fixed-income securities and is generally a better choice than equity schemes. It is ideal for investors with a maximum time horizon of one day to three years. 
  • Hybrid Schemes: The time window for this particular scheme is three to five years. A hybrid scheme diversifies your portfolio by investing in different assets, which reduces risk exposure. It is a mix of equity, debt, and other asset types. Perfect for medium to long-term investments.

What are the top mutual fund investment plans with high returns? 

We have prepared a list of some of the top-performing mutual funds in India, divided into categories – equity, debt, and hybrid.

*return rates were last updated on 22 September 2022.

Equity Mutual Fund

In Equity mutual funds, investment is mainly in the form of company stocks. It can be an Active fund where a fund manager actively manages the portfolio and aims to beat the benchmark index. Or a Passive fund, where the fund manager only prepares a portfolio that matches the market index. It allows a shareholder to have a more diverse portfolio through investing in different stocks/sectors in the market. Thereby it decreases the risk rate in the long run.

Two options you can consider if you are thinking of investing in Equity funds-

  • ICICI Prudential Technology Direct Plan-Growth

Ideal for long-term investments. ICICI Prudential is one of the top-performing mutual funds in India. It has an expense ratio of 0.78%, with a minimum investment of SIP hundred rupees and a lumpsum of five thousand rupees. The fund is nine years and six months old. It provides a five-year return rate of 26.82%.

  • Tata Digital India Fund

It is another top mutual fund investment plan that has consistently maintained good records in the market. This plan has an expense ratio of 0.34%. The minimum investment required is a SIP of one hundred and fifty rupees and a lumpsum of five thousand rupees. The fund age of this particular plan is six years and nine months. It has a five-year return rate of 27.84%.

Debt Mutual Funds

Debt mutual funds scheme includes investments in corporate bonds, gilt funds, government securities, and other fixed-income resources. Shareholders wishing to garner stable returns and invest in a low-risk environment opt for Debit mutual fund schemes. The two best options you can choose from if you want to invest in Debit mutual funds are –

  • IDFC Government Securities Fund Constant Maturity Direct- Growth

This mutual fund scheme, by IDFC mutual fund, is a Gilt with a 10-year Constant Duration. It has been around for nine years and eight months and is consistently one of the top-performing mutual funds. The value of assets under management 

(AUM) two hundred and nineteen crores. The expense ratio is 0.49%, slightly higher than other mid-sized mutual funds. A minimum investment amount for this fund is one thousand rupees (SIP) and a lump sum of five thousand rupees. This scheme is ideal for long-term investment as well. The five-year return percentage is 8.27%.

  • SBI Magnum Constant Maturity Fund

This medium-sized fund is a Gilt with a 10-year Constant Duration from SBI Mutual Fund. It is one of India’s top-performing mutual funds, with a good track record. The net worth of its assets under management (AUM) is eight hundred and fifteen crores. This fund maintains an excellent credit profile and has been around for nine years and eight months. It has an expense ratio of 0.33%, which is at par with most mid-sized mutual funds in India. The SIP starts at five hundred rupees. This mutual fund scheme has a five-year return percentage of 7.58%.

Hybrid Mutual Funds

Hybrid mutual funds offer choices for shareholders with high-risk tolerance to those with moderate choices. It guarantees a diverse portfolio concerning assets (equity, debt), and an investor will have multiple options within each asset category. For instance, in Equity, you can choose between large-cap and small-cap stocks. Hybrid funds can be a perfect choice if you enter the mutual funds market.

Two options you can choose from –

  • Quaint Multi Asset Fund Direct-Growth

This mutual fund scheme from Quantum Mutual Fund came into being in 2013 and has a fund age of nine years. It falls under the Multi-Asset Allocation category. It is a small mutual fund with an asset value of three hundred sixty-two crores. For a fund of this size, the expense ratio of 0.56% is higher than other mutual funds in the market in this category. Five-year return percentage is 20.61%.

  • Axis Triple Advantage Fund

Axis Triple Advantage Direct Plan-Growth has a net worth of one thousand eight hundred and seventeen crore assets under management (AUM). In contrast with the regular market trends, it is a mid-sized mutual fund scheme. It has a fund age of nine years and eight months. The expense ratio for this scheme is 0.64%. And has a five-year return percentage of 12.1%.

How to start investing in top mutual funds in India?

Before dealing with mutual fund schemes, you must have certain documents. The list is as follows –

  1. PAN Card
  2. Address proof ( Aadhar Card, Voter Registration Card, Electricity Bill, etc.)
  3. Your photograph
  4. A cancelled cheque or a bank statement

According to government guidelines, every investor must complete the KYC (Know Your Customer) formalities before investing in mutual funds. You can do this in person by approaching a registrar or a mutual funds office. Fill up the required form, and submit a copy of the necessary documents directly at the office. Along with your documents, you can also fill up the form for your first investment. Some mutual fund offices allow e-registration, i.e., you can complete the KYC formalities online. Once you complete these formalities, you can start investing directly. 


Finally, before you formally invest, there are two other things to remember. One, check how well the scheme is performing in the market. And two, make sure to check the performance record of your fund manager.

If you need help with finances, you can always take the help of experts such as Piramal Finance to guide you through your financial doubts. If you need advice regarding managing your mutual fund investment plans, visit our website now!