Invest in Best Mutual Funds

Unlock financial growth and diversify risk with the strategic power of mutual funds for a secure and prosperous investment journey.



Your wealth


as your bank




saving options
Home Investments Mutual Funds

What are Mutual Funds?

Mutual funds are one of the most preferred investment options these days. A mutual fund collects and invests funds from thousands of individuals who have a common investment objective. They are managed by Asset Management Companies that provide various mutual fund schemes to the public. Each mutual fund can invest money in stocks, bonds, Government securities and various other listed and unlisted assets.

Mutual funds are a fantastic investment option for individuals as they can invest in different kinds of asset options without the effort to do the research. The returns generated from mutual funds are distributed proportionately to all the investors. Most AMCs have schemes designed to provide optimum returns to their investors.

Mutual Fund Investment Modes

If you want to invest in mutual funds, you have two modes of investments – lump sum and Systematic Investment Plans (SIP)

  • Lump Sum Investment : As the name indicates, it involves a one-time investment. If you have a sizable disposable income in hand, you can go in for lump sum investment.
  • Systematic Investment Plans (SIP): Systematic Investment Plan or SIP allows you to invest money at periodic intervals. Investors can facilitate transfer to their SIP through the auto-debit feature from their savings account.

SIP Calculator

At Fincover®

Advantages of Mutual Funds


Cost-Effective & Affordability

Economies of scale lead to lower transaction costs, making mutual funds a cost-effective option for Investors


Professional Management & Expertise

Experienced Fund Managers make informed decisions optimizing returns & managing Market associated risks


Liquidity & Accessibility

Easy to buy and sell at Net Asset Value (NAV). It can be liquidated easily compared to other investments in the market



Mutual funds spread your investments across various assets, minimizing risk and enhancing portfolio stability



Regular reporting and disclosure offer transparency, providing investors with clear insights into their mutual fund holdings


Power of Compounding

Dividends & capital gains can be automatically reinvested, fostering the compounding effect for long term big returns

How to Select the Best Mutual Fund?

Before investing in Mutual Funds, you must have a clear and compelling idea of your financial goals for the future. There are a few other factors that you should keep in mind before choosing a plan.

Financial Goal Performance of the fund Risk Appetite High AUM

You should always invest in any sector with an eye towards the future. Whether you are looking for a short-term profit or long-term benefit like a retirement corpus, you must be clear about your financial goals. Investing without a plan can lead to massive financial mismanagement. If you are a risk-averse individual, it's better to go for less risky funds but provide decent liquidity.

Once you select the best mutual fund category, you should opt for the top-performing mutual fund in that category. Analyzing the returns over some time is the best way to know if that mutual fund would be beneficial to you or not. If the fund has shown better returns over five years, it could be the right choice.

Choosing the best mutual fund also depends on your risk appetite. If you have a high-risk appetite, you can choose equity funds that may provide you with higher returns. On the other hand, if you are a conservative investor who is wary of taking risks, it's better to opt for a debt fund or a large-cap equity fund.

The higher the value of total assets in a fund, the chances for the returns are better. A large AUM (Assets under Management) also indicates investors' trust in that fund and its performance.

Based on Asset Class

What are the types of Mutual Funds?

Equity Mutual Fund

As the name suggests, Equity Mutual Funds invests mainly in equity shares of listed companies. At least 65 per cent of its funds must be invested in equity shares

Types of Equity Mutual funds
Large Cap Funds
Mid-Cap Funds
Small-Cap Funds
Multi-cap Funds
Top Equity Mutual funds
Motilal Oswal Midcap Fund (Direct Growth)
5Y Returns

35.27% p.a

SBI Contra Fund (Regular Plan)
5Y Returns

25.74% p.a

Nippon India Growth Fund (Direct Plan)
5Y Returns

25.63% p.a

Edelweiss Mid Cap Fund (Direct Plan)
5Y Returns

25.22% p.a

Debt Funds

Debt Funds are funds that invest in corporate debt like debentures and fixed income instruments such as government bonds.

Types of Debt Mutual funds
Top Debt Mutual funds
bandhan mf
Bandhan Government Securities Fund
1Y Returns

8.56% p.a

ICICI Prudential Constant Maturity Gilt Fund
1Y Returns

8.49% p.a

ICICI Prudential Short Term Fund
1Y Returns

8.10% p.a

HDFC Nifty G-Sec July 2031 Index Fund
1Y Returns

8.06% p.a

Hybrid Funds

As the name suggests, this is a hybrid of equity and debt mutual funds and is a great way to diversify your investment portfolio

Types of Hybrid Mutual funds
Top Hybrid Mutual funds
Bank of India Mid & Small Cap Equity & Debt Fund
1Y Returns

25.74% p.a

ICICI Prudential Equity & Debt Fund
1Y Returns

25.69% p.a

HDFC Balanced Advantage Fund
1Y Returns

25.00% p.a

ICICI Prudential Multi Asset Fund
1Y Returns

24.25% p.a

NAV represents the per-unit market value of a mutual fund's assets minus its liabilities and it is calculated everyday. It is the price at which investors buy or sell units
Yes, Most Mutual funds allow investors to redeem their units anytime. The redemption involves selling units back to fund and the proceeds are based on current NAV
Large-cap funds invest in large-sized companies (Top 100 in fortune 500), mid-cap funds focus on medium-sized companies (101 – 250), and small-cap funds target small-sized companies (250 and above), providing different risk-return profiles.
Mutual Fund returns are taxed based on factors like holding period, and the type of the fund. Equity gains have different tax implications than debt
Investment in mutual funds are subject to market risks as it is directly linked to the performance of the underlying securities in the portfolio
Fincover charges a 0% commission on MF investment. You can freely choose from over 3000+ direct mutual funds and begin your investment journey anytime