10 Mutual Funds To Buy This Diwali

Festivals are a great time to think about "Laxmi" (wealth) and plan your investments. A part of that also includes securing your family’s financial future by investing in the right mutual funds this Diwali.

That said, discovering the right mutual funds doesn’t happen by chance. It requires research and an in-depth understanding of securities like stocks and bonds. 

We've made it easy to get a sneak peek into the list of the best mutual funds in India that you can invest in this Diwali.

Top 10 Best Mutual Funds To Buy This Diwali

This list of the top 10 best mutual funds to buy this Diwali has been curated on the app by Cube’s mutual fund advisor, Wealth First, who’ve outperformed the market by ~50% over the past decade. Before adopting any investment strategy, it's advisable to download the Cube Wealth app and consult a Cube Wealth Coach who can provide guidance based on your risk tolerance.

The list includes the likes of liquid funds, corporate bond funds, large-cap funds, mid-cap funds, international funds, and ELSS funds, which have a history of helping investors generate wealth. 

1. Nippon India Liquid Fund

Nippon India Liquid Fund invests in low-risk debt securities like government bonds, T-bills, commercial paper, and others that mature in less than 91 days. 

It’s known to generate predictable returns in the range of 4-6% and can be useful for your emergency fund or short term expenses like Diwali gifts. That’s not all. Nippon India Liquid Fund is also eligible for Cube ATM. 

• AUM: ₹21,655 crores
• 1-Year Return: 3.16%
• 3-Year Returns: 5.30%
• 5-Year Returns: 5.95%
• Expense Ratio: 0.32%
• Fund Manager: Ms Anju Chhajer
  

What’s Cube ATM you ask? Cube ATM allows you to withdraw money from your Nippon India Liquid Fund in less than 30 minutes. 

2. Axis Liquid Fund

Axis Liquid Fund is known to hold bonds and other debt securities that mature in less than 91 days. Liquid funds like this one are known to be used as an alternative to bank savings accounts. 

The reason is simple. Axis Liquid Fund has historically generated returns in the range of 4-6%, which is better than the average bank savings account that gives you up to 2.5% interest. 

• AUM: ₹24,318 crores
• 1-Year Return: 3.22%
• 3-Year Returns: 5.30%
• 5-Year Returns: 5.95%
• Expense Ratio: 0.25%
• Fund Manager: Mr Devang Shah and Mr Aditya Pagaria

3. IDFC Banking & PSU Debt Fund

IDFC Banking & PSU Debt Fund invests in debt securities issued by banks and companies that are classified as public sector undertakings. Debt funds like this one are used to generate wealth for short term expenses. 

For example, buying a new gadget or phone for Diwali that’s 1 to 3 years down the line. In fact, IDFC Banking & PSU Debt Fund is known to generate better returns than the average bank FD. 

• AUM: ₹19,205 crores
• 1-Year Return: 4.78%
• 3-Year Returns: 9.39%
• 5-Year Returns: 7.97%
• Expense Ratio: 0.62%
• Fund Manager: Mr Suyash Choudhary

4. ICICI Prudential Corporate Bond Fund

ICICI Prudential Corporate Bond Fund invests in debt securities issued by corporations and is known to generate better returns than typical bank FDs. It can be a potential option for short term wealth creation.

• AUM: ₹20,979crores
• 1-Year Return: 4.89%
• 3-Year Returns: 8.48%
• 5-Year Returns: 7.78%
• Expense Ratio: 0.58%
• Fund Manager: Mr Rahul Goswami, Mr Anuj Tagra, and  Ms Chandni Gupta

5. Mirae Asset Large Cap Fund

Mirae Asset Large Cap Fund features on this list of the top 10 best mutual funds to buy this Diwali because of its consistent performance and philosophy. It invests in relatively stable large-cap companies. 

This is an equity fund, which means that there may be short term volatility. Thus, this fund can be a potential option for long term wealth creation goals like retirement, buying a house, or funding your child’s college fees. 

• AUM: ₹30,456 crores
• 1-Year Return: 47.76%
• 3-Year Returns: 14.63%
• 5-Year Returns: 15.45%
• Expense Ratio: 1.59%
• Fund Manager: Mr Gaurav Misra and Mr Gaurav Khandelwal

6. Canara Robeco Emerging Equities Fund

Canara Robeco Emerging Equities Fund invests in shares of companies that are potential future leaders. Since this equity fund banks on future potential, it’s known to be suitable for 5+ years. 

Goals 5+ years down the line would include setting up a college fund for your child’s foreign education, paying for a European or Pan-American holiday, buying a new house, and others.  

• AUM: ₹11,461 crores
• 1-Year Return: 57.36%
• 3-Year Returns: 15.94%
• 5-Year Returns: 17.69%
• Expense Ratio: 1.87%
• Fund Manager: Mr Miyush Gandhi and Mr Shridatta Bhandwaldar

7. Axis Focused 25 Fund

Axis Focused 25 Fund can invest in as many as 25 stocks from different market caps. It’s an equity fund that’s why it is potentially suitable for long term goals like buying a plot of land during Diwali 2030. 

• AUM: ₹20,333  crores
• 1-Year Return: 47.56%
• 3-Year Returns: 13.46%
• 5-Year Returns: 16.82%
• Expense Ratio: 1.83%
• Fund Manager: Mr Jinesh Gopani

8. PGIM India Midcap Opportunities Fund 

This is a fund that looks to spot the right opportunities in the midcap categories. It primarily invests in the shares of companies that have the potential to transform into large-cap companies in the future.  

• AUM: ₹3,060 crores
• 1-Year Return: 88.60%
• 3-Year Returns: 25.91%
• 5-Year Returns: 19.20%
• Expense Ratio: 2.29%
• Fund Manager: Mr Aniruddha Naha and Mr Vivek Sharma

9. Franklin India Feeder - Franklin U.S. Opportunities Fund

Franklin India Feeder - Franklin U.S. Opportunities Fund is an international fund. It features on the list of the top 10 best mutual funds to buy this Diwali because of its stellar performance, among other factors. 

• AUM: ₹3,837 crores
• 1-Year Return: 28.91%
• 3-Year Returns: 25.21%
• 5-Year Returns: 23.35%
• Expense Ratio: 1.62%
• Fund Manager: Mr Sandeep Manam

10. Mirae Asset Tax Saver Fund

This is an ELSS fund that can help you save up to ₹46,800 in tax. It offers a potentially suitable way to start your tax planning early right from Diwali. Bear in mind that it carries a 3-year lock-in. 

• AUM: ₹9,832 crores
• 1-Year Return: 61.13 %
• 3-Year Returns: 19.41%
• 5-Year Returns: 20.39%
• Expense Ratio: 1.69%
• Fund Manager: Mr Neelesh Surana

You may also see a Cube Wealth Coach or download the Cube Wealth app to effectively implement these tactics and accomplish long-term financial objectives.

Why Buy Mutual Funds This Diwali?

Mutual funds offer a relatively safe way to get the best out of multiple stocks and bonds in one neat portfolio. A professional fund manager and their team of analysts will handle the everyday trading.

This can ensure that wealth creation is a stress-free experience for you. Moreover, mutual funds are known to generate potentially better returns than traditional investment options like bank FDs and gold.

As you can tell, mutual funds have become one of the most favourite investment options for a reason. They offer a way to build wealth by outperforming inflation and at times, the market. 

However, the secret lies in selecting the right mutual funds for you this Diwali. The wrong mutual funds (or the ones that are right for your neighbour) can put a damper on your wealth creation goals. 

Apps like Cube make it easy for you to invest in the right mutual funds by giving you access to world-class mutual fund advisory for FREE. That’s not all. The app also helps you build the Perfect Portfolio of investments. 

How To Buy Top Mutual Funds This Diwali?

You can start investing in mutual funds during this Diwali using investment apps, AMC websites, or by visiting the branch of an AMC directly. Options #1 and #2 are known to be relatively comfortable compared to #3. 

Broadly speaking, the process of investing in mutual funds is more or less similar across all 3 ways. You’ll have to:

• Download app or visit AMC website/branch
• Complete the KYC process
• Select mutual funds
• Transfer amount
• Start investing
  

Bear in mind that there’s something known as a cut-off time for mutual fund investments that can determine the NAV you’ll get for your investment. 

Mutual funds don’t trade during holidays. That said, there are certain caveats. Events like “Muhurat Trading” are done on auspicious days like Diwali to welcome prosperity.  

FAQs 

1. Why should I consider mutual funds for my Diwali investments? 

Ans. Mutual funds offer a diversified and professionally managed approach to investing in various asset classes, making them a convenient choice for long-term wealth creation.

2. How should I select mutual funds for my Diwali investments? 

Ans. Selecting the right mutual funds should depend on your financial goals, risk tolerance, and investment horizon. It's crucial to assess these factors and choose funds that align with your objectives.

3. Are there any specific tax benefits for investing in mutual funds during Diwali? 

Ans. There are no specific tax benefits for investing during Diwali, but mutual funds may offer tax advantages like lower capital gains taxes, depending on your investment duration.

4. Should I invest in all ten mutual funds mentioned in the article? 

Ans. Not necessarily. Diversifying your portfolio is essential, but the selection of mutual funds should be tailored to your unique financial situation and objectives. Consult with a financial advisor for personalized guidance.

Conclusion

‍As Diwali approaches, many individuals are considering mutual funds as a means to invest and grow their wealth. The ten mutual funds recommended in this article present diverse options for potential investors. However, it's important to approach Diwali investments with a clear understanding of your financial goals, risk tolerance, and investment horizon. These factors should guide your selection from the suggested mutual funds or any other investment options. By doing so, you can make the most of the festival of lights and embark on a path towards financial prosperity.

Note:

Facts & figures are true as of 01-11-2021. The funds mentioned are suggestions based on funds handpicked by Cube's expert Mutual Fund Advisory partner. Before investing please take Cube's Portfolio Planner feature to ensure the funds you see are right for your goals, life stage, risk level and finances. None of the information shared here is to be construed as investment advice.

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