Best Mutual Funds

Value Research Fund Rating FAQs Fund Rating Methodology

If you're looking for the best mutual fund, the answer depends on your goal, your timeline, and your risk appetite – not on a single ranking list. Value Research evaluates every fund in India using the Value Research Fund Rating, a star-based system that measures risk-adjusted returns relative to peers in the same SEBI category. This guide walks you through how to use that framework to find funds suited to your specific financial situation.

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Funds	Riskometer	Return	Category	Ret(₹ 1lakh) RETURN %	SIP Ret (₹ 10K/M) RETURN %	Base Expense Ratio
ABSL Nifty 50 Equal Weight Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,10,099 10.10	1,25,988 10.89	0.26
ABSL Nifty Next 50 Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,13,276 13.28	1,30,145 18.68	0.30
Axis Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,13,427 13.43	1,30,198 18.78	0.12
Bandhan Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,06,888 6.89	1,25,119 9.28	0.76
Bank of India Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,10,189 10.19	1,24,823 8.74	0.87
Baroda BNP Paribas Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,05,446 5.45	1,24,193 7.58	0.67
DSP Large Cap Dir	Very High	Above Avg.	EQ-LC	1,01,580 1.58	1,21,340 2.40	0.76
DSP Nifty 50 Equal Weight Index Dir	Very High	Above Avg.	EQ-LC	1,10,145 10.15	1,26,006 10.92	0.35
DSP Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,13,282 13.28	1,30,094 18.58	0.24
Edelweiss Large Cap Dir	Very High	Avg.	EQ-LC	1,05,143 5.14	1,23,145 5.67	0.58
Edelweiss Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,13,339 13.34	1,30,163 18.71	0.07
HDFC Large Cap Dir Invest Online	Very High	Avg.	EQ-LC	1,04,017 4.02	1,23,512 6.34	0.83
HDFC NIFTY 100 Equal Wght Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,11,587 11.59	1,28,257 15.12	0.36
HDFC NIFTY50 Equal Weight Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,10,028 10.03	1,25,909 10.74	0.34
HDFC NIFTY Next 50 Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,13,186 13.19	1,30,067 18.53	0.25
HSBC Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,12,909 12.91	1,29,883 18.18	0.28
ICICI Pru Large Cap Dir	Very High	Above Avg.	EQ-LC	1,02,125 2.12	1,21,235 2.21	0.71
ICICI Pru Nifty50 Equal Weight Index Dir	Very High	Above Avg.	EQ-LC	1,10,038 10.04	1,25,942 10.80	0.22
ICICI Pru Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,13,067 13.07	1,29,980 18.36	0.26
Invesco India Largecap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,09,757 9.76	1,28,531 15.63	0.67
JM Large Cap Dir	Very High	Above Avg.	EQ-LC	1,06,716 6.72	1,24,707 8.52	0.82
Kotak Large Cap Dir	Very High	Avg.	EQ-LC	1,04,201 4.20	1,22,770 4.99	0.57
Kotak Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,13,374 13.37	1,30,170 18.72	0.08
LIC MF Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,13,572 13.57	1,30,454 19.26	0.23
Motilal Oswal Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,13,244 13.24	1,30,074 18.54	0.27
Navi Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,13,213 13.21	1,30,080 18.55	0.15
Nippon India Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,03,196 3.20	1,22,084 3.74	0.57
Nippon India Nifty Next 50 Junior BeES FoF Dir Invest Online	Very High	Above Avg.	EQ-LC	1,13,368 13.37	1,30,166 18.72	0.11
SBI Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,13,293 13.29	1,30,145 18.68	0.26
Sundaram Nifty 100 Equal Weight Dir	Very High	Above Avg.	EQ-LC	1,11,787 11.79	1,28,472 15.52	0.49
UTI NIFTY50 Equal Wght Index Dir Invest Online	Very High	Avg.	EQ-LC	1,10,180 10.18	1,26,012 10.93	0.31
UTI Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,13,312 13.31	1,30,143 18.67	0.31
WhiteOak Capital Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,06,220 6.22	1,24,606 8.34	0.53
Bandhan Large & Mid Cap Dir Invest Online	Very High	High	EQ-L&MC	1,08,901 8.90	1,25,502 9.99	0.44
HDFC Large and Mid Cap Dir Invest Online	Very High	Above Avg.	EQ-L&MC	1,07,372 7.37	1,26,341 11.54	0.75
HSBC Large and Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	1,15,103 15.10	1,31,595 21.44	0.66
ICICI Pru Large & Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	1,10,560 10.56	1,27,177 13.10	0.67
Invesco India Large & Mid Cap Dir Invest Online	Very High	High	EQ-L&MC	1,13,250 13.25	1,34,317 26.68	0.55
Motilal Oswal Large and Midcap Dir	Very High	High	EQ-L&MC	1,10,407 10.41	1,29,624 17.69	0.60
Nippon India Vision Large & Mid Cap Dir Invest Online	Very High	Avg.	EQ-L&MC	1,07,292 7.29	1,25,687 10.33	0.91
SBI Large & Midcap Dir Invest Online	Very High	Avg.	EQ-L&MC	1,09,356 9.36	1,26,397 11.65	0.57
UTI Large & Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	1,08,145 8.15	1,25,261 9.54	0.77
360 ONE Flexicap Dir	Very High	Above Avg.	EQ-FLX	1,13,919 13.92	1,32,376 22.93	0.51
ABSL Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,14,071 14.07	1,30,317 19.00	0.71
Bank of India Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	1,16,291 16.29	1,31,096 20.48	0.49
Edelweiss Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,08,605 8.61	1,25,259 9.54	0.47
Franklin India Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,02,461 2.46	1,22,468 4.44	0.75
HDFC Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	1,07,431 7.43	1,25,188 9.41	0.55
HDFC Retirement Savings Equity Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,01,119 1.12	1,21,185 2.12	0.74
HSBC Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,09,763 9.76	1,28,359 15.31	0.89
ICICI Pru Diversified Equity All Cap Omni FoF Dir	Very High	Above Avg.	EQ-FLX	1,06,595 6.60	1,25,266 9.61	0.29
ICICI Pru Flexicap Dir	Very High	Above Avg.	EQ-FLX	1,14,987 14.99	1,31,649 21.54	0.66
ICICI Pru Retirement Pure Equity Dir	Very High	High	EQ-FLX	1,12,971 12.97	1,28,140 14.90	0.64
Invesco India Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	1,06,697 6.70	1,29,945 18.30	0.52
ITI Flexi Cap Dir	Very High	High	EQ-FLX	1,15,488 15.49	1,32,963 24.06	0.55
JM Flexicap Dir	Very High	Above Avg.	EQ-FLX	1,06,653 6.65	1,28,137 14.89	0.55
Nippon India Retirement Wealth Creation Dir Invest Online	Very High	Avg.	EQ-FLX	1,04,600 4.60	1,24,645 8.41	0.85
Parag Parikh Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,01,029 1.03	1,21,162 2.08	0.52
SBI Children's Investment Plan Dir Invest Online	Very High	High	EQ-FLX	1,21,522 21.52	1,34,935 27.88	0.71
Union Retirement Dir	Very High	Avg.	EQ-FLX	1,10,875 10.88	1,27,877 14.40	0.98
WhiteOak Capital Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,09,429 9.43	1,28,362 15.31	0.47
Canara Robeco Focused Dir Invest Online	Very High	Avg.	EQ-Focused	1,03,487 3.49	1,24,440 8.03	0.48
HDFC Focused Dir Invest Online	Very High	High	EQ-Focused	1,05,852 5.85	1,24,177 7.55	0.60
ICICI Pru Focused Equity Dir	Very High	High	EQ-Focused	1,08,985 8.98	1,26,086 11.07	0.57
Invesco India Focused Dir Invest Online	Very High	High	EQ-Focused	1,05,406 5.41	1,32,700 23.55	0.49
ITI Focused Dir	Very High	High	EQ-Focused	1,13,878 13.88	1,28,988 16.49	0.59
Kotak Focused Dir	Very High	Above Avg.	EQ-Focused	1,14,308 14.31	1,29,017 16.55	0.51
Mahindra Manulife Focused Dir	Very High	Above Avg.	EQ-Focused	1,06,422 6.42	1,22,834 5.10	0.51
SBI Focused Dir Invest Online	Very High	Above Avg.	EQ-Focused	1,16,650 16.65	1,30,910 20.13	0.55
Axis Multicap Dir Invest Online	Very High	Above Avg.	EQ-MLC	1,12,963 12.96	1,31,881 21.98	0.71
Bank of India Multi Cap Dir	Very High	Above Avg.	EQ-MLC	1,17,128 17.13	1,31,201 20.68	0.74
HSBC Multi Cap Dir	Very High	High	EQ-MLC	1,11,867 11.87	1,29,396 17.26	0.50
ICICI Pru Multicap Dir	Very High	Avg.	EQ-MLC	1,12,916 12.92	1,31,373 21.01	0.78
Kotak Multicap Dir	Very High	High	EQ-MLC	1,12,166 12.17	1,26,421 11.69	0.42
Mahindra Manulife Multi Cap Dir	Very High	Above Avg.	EQ-MLC	1,14,202 14.20	1,31,352 20.97	0.45
Baroda BNP Paribas Midcap Dir Invest Online	Very High	Avg.	EQ-MC	1,15,918 15.92	1,30,612 19.56	0.48
Edelweiss Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,12,237 12.24	1,29,046 16.60	0.41
HDFC Mid Cap Dir Invest Online	Very High	Above Avg.	EQ-MC	1,12,831 12.83	1,28,831 16.20	0.61
HSBC Midcap Dir	Very High	High	EQ-MC	1,22,018 22.02	1,37,086 32.08	0.54
ICICI Pru Midcap Dir	Very High	Above Avg.	EQ-MC	1,17,703 17.70	1,31,400 21.06	0.89
Invesco India Mid cap Dir Invest Online	Very High	High	EQ-MC	1,13,891 13.89	1,33,425 24.95	0.48
JM Midcap Dir	Very High	Above Avg.	EQ-MC	1,13,111 13.11	1,34,770 27.56	0.55
Mahindra Manulife Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,17,016 17.02	1,32,387 22.95	0.49
Nippon India Growth Mid Cap Dir Invest Online	Very High	High	EQ-MC	1,13,144 13.14	1,29,603 17.65	0.58
Sundaram Midcap Dir	Very High	Above Avg.	EQ-MC	1,12,583 12.58	1,29,781 17.99	0.75
WhiteOak Capital Mid Cap Fund Dir Invest Online	Very High	High	EQ-MC	1,18,766 18.77	1,34,012 26.08	0.44
Axis Nifty Smallcap 50 Index Dir Invest Online	Very High	Above Avg.	EQ-SC	1,17,131 17.13	1,37,212 32.33	0.23
Bandhan Small Cap Dir Invest Online	Very High	High	EQ-SC	1,13,917 13.92	1,33,412 24.92	0.33
Bank of India Small Cap Dir Invest Online	Very High	High	EQ-SC	1,25,279 25.28	1,45,519 49.02	0.44
Edelweiss Small Cap Dir	Very High	Avg.	EQ-SC	1,12,998 13.00	1,32,752 23.65	0.44
Invesco India Smallcap Dir Invest Online	Very High	High	EQ-SC	1,19,081 19.08	1,37,900 33.69	0.41
ITI Small Cap Dir	Very High	Above Avg.	EQ-SC	1,20,274 20.27	1,40,762 39.38	0.47
Kotak Nifty Smallcap 50 Index Dir	Very High	Above Avg.	EQ-SC	1,16,836 16.84	1,37,043 32.00	0.17
Mahindra Manulife Small Cap Dir	Very High	Above Avg.	EQ-SC	1,17,584 17.58	1,36,165 30.28	0.48
Nippon India Small Cap Dir Invest Online	Very High	Above Avg.	EQ-SC	1,11,215 11.21	1,32,278 22.74	0.52
Sundaram Small Cap Dir	Very High	Avg.	EQ-SC	1,18,836 18.84	1,35,551 29.08	0.73
Union Small Cap Dir	Very High	Above Avg.	EQ-SC	1,24,388 24.39	1,40,460 38.78	0.79
Axis Value Dir Invest Online	Very High	Above Avg.	EQ-VAL	1,13,665 13.66	1,29,484 17.43	0.64
DSP Value Fund Dir	Very High	Avg.	EQ-VAL	1,15,294 15.29	1,27,362 13.57	1.01
HSBC Value Dir	Very High	High	EQ-VAL	1,06,543 6.54	1,24,323 7.82	0.63
ICICI Pru Value Dir	Very High	Avg.	EQ-VAL	1,02,208 2.21	1,19,733 -0.48	0.79
Kotak Contra Dir	Very High	Above Avg.	EQ-VAL	1,07,770 7.77	1,25,203 9.44	0.55
Motilal Oswal BSE Enhanced Value Index Dir	Very High	High	EQ-VAL	1,15,638 15.64	1,22,272 4.08	0.35
Nippon India Value Dir Invest Online	Very High	Above Avg.	EQ-VAL	1,04,359 4.36	1,22,998 5.40	0.89
Quant Value Dir Invest Online	Very High	High	EQ-VAL	1,19,085 19.09	1,35,345 28.67	0.46
SBI Contra Dir Invest Online	Very High	Avg.	EQ-VAL	1,02,700 2.70	1,21,162 2.08	0.59
UTI Nifty 500 Value 50 Index Dir Invest Online	Very High	High	EQ-VAL	1,19,735 19.73	1,26,802 12.40	0.50
Baroda BNP Paribas ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-ELSS	1,11,133 11.13	1,28,026 14.68	0.92
DSP ELSS Tax Saver Dir	Very High	Above Avg.	EQ-ELSS	1,04,916 4.92	1,22,818 5.07	0.65
Franklin India ELSS Tax Saver Dir	Very High	Avg.	EQ-ELSS	1,01,247 1.25	1,21,866 3.35	0.92
HDFC ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-ELSS	1,01,538 1.54	1,21,539 2.76	0.96
HSBC ELSS Tax Saver Dir	Very High	Above Avg.	EQ-ELSS	1,09,552 9.55	1,28,193 15.00	0.97
JM ELSS Tax Saver Dir	Very High	High	EQ-ELSS	1,13,518 13.52	1,31,832 21.89	0.93
Motilal Oswal ELSS Tax Saver Dir	Very High	High	EQ-ELSS	1,10,840 10.84	1,31,599 21.44	0.64
Nippon India ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-ELSS	1,05,723 5.72	1,24,487 8.12	0.87
Parag Parikh ELSS Tax Saver Dir Invest Online	Very High	Avg.	EQ-ELSS	96,531 -3.47	1,19,069 -1.66	0.54
Quant ELSS Tax Saver Dir Invest Online	Very High	High	EQ-ELSS	1,17,030 17.03	1,32,780 23.71	0.67
SBI ELSS Tax Saver Dir Invest Online	Very High	High	EQ-ELSS	1,03,610 3.61	1,22,308 4.15	0.83
WhiteOak Capital ELSS Tax Saver Dir Invest Online	Very High	High	EQ-ELSS	1,08,609 8.61	1,28,525 15.62	0.64
Bandhan Financial Services Dir	Very High	Above Avg.	EQ-SB&FS	1,07,212 7.21	1,24,991 9.05	0.56
Invesco India Financial Services Dir Invest Online	Very High	High	EQ-SB&FS	1,10,345 10.34	1,26,281 11.43	0.70
Motilal Oswal BSE Fins ex Bank 30 Index Dir	Very High	Above Avg.	EQ-SB&FS	1,10,847 10.85	1,27,986 14.61	0.37
Nippon India Banking & Financial Srvices Dir Invest Online	Very High	Avg.	EQ-SB&FS	1,06,681 6.68	1,23,348 6.04	0.82
Quant BFSI Dir Invest Online	Very High	High	EQ-SB&FS	1,19,627 19.63	1,33,654 25.39	0.65
SBI Banking & Financial Services Dir Invest Online	Very High	Above Avg.	EQ-SB&FS	1,06,331 6.33	1,22,183 3.92	0.64
Sundaram Financial Services Opportunities Dir	Very High	Above Avg.	EQ-SB&FS	1,10,831 10.83	1,25,721 10.39	0.67
ICICI Pru Pharma Healthcare and Diagnostics Dir	Very High	Above Avg.	EQ-Pharma	1,12,541 12.54	1,32,322 22.83	0.89
SBI Healthcare Opportunities Dir Invest Online	Very High	High	EQ-Pharma	1,22,726 22.73	1,41,629 41.12	0.75
UTI Healthcare Dir	Very High	Above Avg.	EQ-Pharma	1,19,108 19.11	1,38,850 35.57	1.00
HDFC Consumption Dir Invest Online	Very High	Above Avg.	EQ-Consumption	1,00,384 0.38	1,24,405 7.97	0.95
ICICI Pru Bharat Consumption Dir	Very High	Above Avg.	EQ-Consumption	1,04,055 4.06	1,26,575 11.98	0.95
Mirae Asset Great Consumer Dir Invest Online	Very High	Above Avg.	EQ-Consumption	1,04,849 4.85	1,27,129 13.01	0.43
Nippon India Consumption Dir Invest Online	Very High	Above Avg.	EQ-Consumption	1,02,299 2.30	1,26,824 12.44	0.58
Tata India Consumer Dir Invest Online	Very High	High	EQ-Consumption	1,10,324 10.32	1,32,192 22.58	0.62
Bank of India Manufacturing & Infra Dir Invest Online	Very High	Above Avg.	EQ-INFRA	1,24,107 24.11	1,35,802 29.57	0.61
Canara Robeco Infrastructure Dir Invest Online	Very High	Avg.	EQ-INFRA	1,07,885 7.89	1,26,187 11.26	0.84
DSP India T.I.G.E.R. Dir	Very High	High	EQ-INFRA	1,19,134 19.13	1,34,204 26.46	0.73
Franklin Build India Dir	Very High	Above Avg.	EQ-INFRA	1,04,823 4.82	1,22,552 4.59	0.83
ICICI Pru Infrastructure Dir	Very High	Above Avg.	EQ-INFRA	1,07,944 7.94	1,25,622 10.21	0.99
LIC MF Infrastructure Dir Invest Online	Very High	High	EQ-INFRA	1,15,850 15.85	1,32,693 23.54	0.68
ABSL Long Duration Dir Invest Online	Moderate	Above Avg.	DT-LONG D	1,03,305 3.31	1,23,335 6.02	0.36
Bandhan Long Duration Dir	Moderate	Above Avg.	DT-LONG D	1,03,963 3.96	1,24,165 7.53	0.24
Franklin India Long Duration Fund Dir	Moderate	High	DT-LONG D	1,05,140 5.14	1,23,670 6.63	0.30
ICICI Pru Long Term Bond Dir	Moderate	Above Avg.	DT-LONG D	1,03,137 3.14	1,23,375 6.09	0.37
Nippon India Nivesh Lakshya Long Duration Dir Invest Online	Moderate	Avg.	DT-LONG D	1,02,587 2.59	1,23,735 6.75	0.28
ICICI Pru Bond Dir	Moderate	Above Avg.	DT-M to LD	1,05,113 5.11	1,23,967 7.17	0.46
ICICI Pru Diversified Debt Strategy Active FoF Dir	Moderately High	Avg.	DT-M to LD	1,05,942 5.94	1,23,942 7.13	0.36
JM Medium to Long Duration Dir	Moderate	Avg.	DT-M to LD	1,04,219 4.22	1,23,213 5.80	0.50
LIC MF Medium to Long Duration Dir Invest Online	Moderate	High	DT-M to LD	1,04,745 4.74	1,23,726 6.73	0.18
Axis Short Duration Dir Invest Online	Moderate	Above Avg.	DT-SD	1,06,267 6.27	1,23,881 7.02	0.32
Bandhan Short Duration Dir Invest Online	Low to Moderate	High	DT-SD	1,06,247 6.25	1,24,160 7.53	0.29
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL SD Index Dir	Moderate	High	DT-SD	1,05,673 5.67	1,23,594 6.49	0.17
HDFC Short Term Debt Dir Invest Online	Moderate	Avg.	DT-SD	1,06,035 6.04	1,23,736 6.75	0.33
ICICI Pru Short Term Dir	Moderate	High	DT-SD	1,06,609 6.61	1,24,049 7.32	0.38
Nippon India Short Duration Dir Invest Online	Moderate	Above Avg.	DT-SD	1,06,120 6.12	1,23,822 6.91	0.32
Sundaram Short Duration Dir	Low to Moderate	Avg.	DT-SD	1,05,856 5.86	1,23,587 6.48	0.24
Axis Treasury Advantage Dir Invest Online	Low to Moderate	Above Avg.	DT-LD	1,06,436 6.44	1,23,741 6.76	0.30
ICICI Pru Savings Dir	Moderate	High	DT-LD	1,06,516 6.52	1,23,800 6.87	0.36
Kotak Low Duration Dir	Low to Moderate	High	DT-LD	1,06,443 6.44	1,23,779 6.83	0.35
Mirae Asset Low Duration Dir Invest Online	Low to Moderate	Above Avg.	DT-LD	1,06,511 6.51	1,23,860 6.98	0.17
Nippon India Low Duration Dir Invest Online	Moderate	Above Avg.	DT-LD	1,06,502 6.50	1,23,784 6.84	0.32
Axis Ultra Short Duration Dir Invest Online	Moderate	Above Avg.	DT-USD	1,06,693 6.69	1,23,886 7.02	0.30
Invesco India Ultra Short Duration Dir Invest Online	Low to Moderate	Avg.	DT-USD	1,06,645 6.65	1,23,901 7.05	0.21
ITI Ultra Short Term Dir	Low to Moderate	Avg.	DT-USD	1,06,452 6.45	1,23,737 6.75	0.17
LIC MF Ultra Short Duration Direct Invest Online	Low to Moderate	Above Avg.	DT-USD	1,06,615 6.62	1,23,911 7.07	0.21
Mahindra Manulife Ultra Short Duration Dir	Low to Moderate	Avg.	DT-USD	1,06,566 6.57	1,23,854 6.97	0.26
Mirae Asset Ultra Short Duration Dir Invest Online	Low to Moderate	Above Avg.	DT-USD	1,06,693 6.69	1,23,939 7.12	0.18
Tata Ultra Short Term Dir Invest Online	Moderate	High	DT-USD	1,06,890 6.89	1,24,027 7.28	0.26
ABSL Liquid Dir Invest Online	Moderate	High	DT-LIQ	1,06,509 6.51	1,23,782 6.80	0.18
Axis Liquid Dir Invest Online	Low to Moderate	High	DT-LIQ	1,06,508 6.51	1,23,789 6.81	0.10
Bank of India Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,431 6.43	1,23,730 6.70	0.07
Edelweiss Liquid Dir	Low to Moderate	High	DT-LIQ	1,06,477 6.48	1,23,761 6.76	0.09
Franklin India Liquid Super Inst Plan Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,469 6.47	1,23,766 6.77	0.12
Groww Liquid Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,437 6.44	1,23,730 6.71	0.09
Invesco India Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,418 6.42	1,23,734 6.71	0.13
Mahindra Manulife Liquid Dir	Moderate	Above Avg.	DT-LIQ	1,06,441 6.44	1,23,728 6.70	0.13
Mirae Asset Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,359 6.36	1,23,672 6.60	0.08
Nippon India Liquid Dir Invest Online	Moderate	Above Avg.	DT-LIQ	1,06,469 6.47	1,23,765 6.77	0.17
PGIM India Liquid Dir	Low to Moderate	High	DT-LIQ	1,06,469 6.47	1,23,766 6.77	0.10
Tata Liquid Dir Invest Online	Moderate	Above Avg.	DT-LIQ	1,06,435 6.44	1,23,729 6.70	0.19
Union Liquid Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,447 6.45	1,23,733 6.71	0.06
Axis Money Market Dir Invest Online	Moderate	Above Avg.	DT-MM	1,06,490 6.49	1,23,822 6.91	0.15
Bajaj Finserv Money Market Dir	Low to Moderate	Above Avg.	DT-MM	1,06,441 6.44	1,23,799 6.87	0.10
Bandhan Money Market Dir Invest Online	Low to Moderate	High	DT-MM	1,06,523 6.52	1,23,837 6.94	0.09
Kotak Money Market Dir	Moderate	Above Avg.	DT-MM	1,06,454 6.45	1,23,813 6.89	0.14
Tata Money Market Dir Invest Online	Moderate	High	DT-MM	1,06,534 6.53	1,23,842 6.94	0.15
Union Money Market Dir	Low to Moderate	Avg.	DT-MM	1,06,649 6.65	1,23,947 7.14	0.14
Axis Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,357 5.36	1,22,952 5.29	0.06
Bajaj Finserv Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,381 5.38	1,22,959 5.31	0.07
Bandhan Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,326 5.33	1,22,932 5.26	0.04
Bank of India Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,573 5.57	1,23,118 5.59	0.08
Baroda BNP Paribas Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,346 5.35	1,22,947 5.28	0.05
Franklin India Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,387 5.39	1,22,973 5.33	0.06
HSBC Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,330 5.33	1,22,936 5.26	0.05
ICICI Pru Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,331 5.33	1,22,937 5.27	0.07
Kotak Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,342 5.34	1,22,945 5.28	0.06
Mahindra Manulife Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,312 5.31	1,22,918 5.23	0.06
Mirae Asset Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,337 5.34	1,22,937 5.27	0.07
Tata Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,361 5.36	1,22,956 5.30	0.05
360 ONE Dynamic Bond Dir	Moderately High	High	DT-DB	1,06,560 6.56	1,24,518 8.18	0.29
Axis Dynamic Bond Dir Invest Online	Moderate	Above Avg.	DT-DB	1,06,495 6.49	1,24,642 8.41	0.27
Mirae Asset Dynamic Bond Dir Invest Online	Moderate	Avg.	DT-DB	1,05,709 5.71	1,23,227 5.82	0.14
Nippon India Dynamic Bond Dir Invest Online	Moderate	High	DT-DB	1,05,479 5.48	1,23,855 6.97	0.30
SBI Dynamic Bond Dir Invest Online	Moderate	Above Avg.	DT-DB	1,05,424 5.42	1,23,715 6.71	0.53
UTI Dynamic Bond Dir	Low to Moderate	Avg.	DT-DB	1,05,260 5.26	1,23,650 6.59	0.74
Axis Corporate Bond Dir Invest Online	Moderate	High	DT-CB	1,06,021 6.02	1,23,839 6.94	0.30
Bandhan Corporate Bond Dir Invest Online	Moderate	Above Avg.	DT-CB	1,06,062 6.06	1,23,999 7.23	0.28
Baroda BNP Paribas Corporate Bond Dir Invest Online	Moderate	High	DT-CB	1,06,196 6.20	1,24,044 7.31	0.18
DSP Corporate Bond Dir	Low to Moderate	Avg.	DT-CB	1,05,933 5.93	1,23,534 6.38	0.25
Franklin India Corporate Debt Dir	Moderate	Above Avg.	DT-CB	1,06,225 6.22	1,23,765 6.80	0.21
ICICI Pru Corporate Bond Dir	Moderate	Above Avg.	DT-CB	1,06,321 6.32	1,23,977 7.19	0.31
Kotak Corporate Bond Dir	Moderate	Above Avg.	DT-CB	1,05,637 5.64	1,23,536 6.38	0.31
Nippon India Corporate Bond Dir Invest Online	Moderate	Above Avg.	DT-CB	1,05,716 5.72	1,23,765 6.80	0.31
ABSL Credit Risk Dir Invest Online	Moderately High	Above Avg.	DT-CR	1,13,144 13.14	1,27,263 13.26	0.67
Axis Credit Risk Dir Invest Online	High	Above Avg.	DT-CR	1,08,939 8.94	1,25,237 9.51	0.68
Baroda BNP Paribas Credit Risk Dir Invest Online	Moderately High	Above Avg.	DT-CR	1,07,023 7.02	1,23,916 7.08	0.68
Invesco India Credit Risk Dir Invest Online	Moderately High	High	DT-CR	1,08,364 8.36	1,25,468 9.93	0.24
Nippon India Credit Risk Dir Invest Online	Moderately High	Above Avg.	DT-CR	1,08,086 8.09	1,24,869 8.83	0.51
Bandhan Banking and PSU Dir Invest Online	Moderate	Above Avg.	DT-BK & PSU	1,06,070 6.07	1,23,943 7.13	0.30
Franklin India Banking & PSU Debt Dir	Low to Moderate	High	DT-BK & PSU	1,06,385 6.38	1,23,803 6.87	0.19
ICICI Pru Banking & PSU Debt Dir	Moderate	Above Avg.	DT-BK & PSU	1,06,014 6.01	1,23,764 6.80	0.33
ITI Banking & PSU Debt Dir	Low to Moderate	Below Avg.	DT-BK & PSU	1,05,346 5.35	1,23,177 5.73	0.18
UTI Banking & PSU Dir Invest Online	Low to Moderate	Above Avg.	DT-BK & PSU	1,05,923 5.92	1,23,581 6.47	0.18
ABSL Floating Rate Dir Invest Online	Low to Moderate	Below Avg.	DT-Floater	1,06,272 6.27	1,23,650 6.59	0.21
HDFC Floating Rate Debt Dir Invest Online	Moderate	Avg.	DT-Floater	1,06,382 6.38	1,23,827 6.92	0.23
ICICI Pru Floating Interest Dir	Moderate	Avg.	DT-Floater	1,07,038 7.04	1,24,153 7.51	0.26
Kotak Floating Rate Dir	Moderate	Avg.	DT-Floater	1,06,324 6.32	1,23,730 6.74	0.22
Axis Gilt Dir Invest Online	Moderate	Above Avg.	DT-GL	1,04,972 4.97	1,24,004 7.24	0.37
Bandhan Gilt Dir Invest Online	Moderate	Above Avg.	DT-GL	1,07,779 7.78	1,26,083 11.07	0.45
Baroda BNP Paribas Gilt Dir Invest Online	Moderate	Above Avg.	DT-GL	1,03,336 3.34	1,23,292 5.94	0.13
Franklin India Government Securities Dir	Moderate	Avg.	DT-GL	1,05,648 5.65	1,24,063 7.35	0.54
ICICI Pru Gilt Dir	Moderate	Above Avg.	DT-GL	1,05,424 5.42	1,24,343 7.86	0.49
Motilal Oswal 5 Year G-Sec FoF Dir	Moderate	High	DT-GL	1,05,717 5.72	1,23,879 7.01	0.13
SBI Gilt Dir Invest Online	Moderate	Avg.	DT-GL	1,03,884 3.88	1,23,023 5.45	0.40
UTI Gilt Dir	Moderate	Above Avg.	DT-GL	1,05,251 5.25	1,23,921 7.09	0.57
Bandhan Aggressive Hybrid Dir Invest Online	Very High	Above Avg.	HY-AH	1,12,440 12.44	1,28,816 16.17	0.47
Bank of India Mid & Small Cap Eqt & Debt Dir Invest Online	Very High	High	HY-AH	1,14,352 14.35	1,32,003 22.22	0.60
Edelweiss Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	1,07,074 7.07	1,25,354 9.72	0.43
ICICI Pru Children's Dir	Very High	Above Avg.	HY-AH	1,03,169 3.17	1,23,419 6.17	1.19
ICICI Pru Equity & Debt Dir	Very High	High	HY-AH	1,06,688 6.69	1,23,242 5.85	0.77
ICICI Pru Retirement Hybrid Aggressive Dir	Very High	High	HY-AH	1,13,393 13.39	1,28,080 14.78	0.72
JM Aggressive Hybrid Dir	Very High	High	HY-AH	1,04,037 4.04	1,25,470 9.93	0.74
Kotak Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	1,08,769 8.77	1,27,087 12.93	0.44
Mahindra Manulife Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	1,03,243 3.24	1,22,510 4.52	0.52
Nippon India Aggressive Hybrid Dir Invest Online	Very High	Avg.	HY-AH	1,06,190 6.19	1,24,632 8.39	0.90
SBI Equity Hybrid Dir Invest Online	Very High	Avg.	HY-AH	1,07,767 7.77	1,26,360 11.58	0.54
UTI Aggressive Hybrid Dir Invest Online	Very High	Above Avg.	HY-AH	1,04,631 4.63	1,23,153 5.68	0.97
ABSL Regular Savings Dir Invest Online	Moderately High	Above Avg.	HY-CH	1,06,551 6.55	1,24,319 7.82	0.82
Bank of India Conservative Hybrid Dir Invest Online	Moderate	Above Avg.	HY-CH	1,04,803 4.80	1,22,902 5.23	0.94
DSP Regular Savings Dir	Moderately High	Avg.	HY-CH	1,04,987 4.99	1,23,522 6.36	0.51
ICICI Pru Regular Savings Dir	High	Above Avg.	HY-CH	1,05,834 5.83	1,23,603 6.51	0.83
ICICI Pru Retirement Hybrid Conservative Dir	Moderately High	High	HY-CH	1,08,236 8.24	1,24,798 8.70	0.79
Kotak Debt Hybrid Dir	High	High	HY-CH	1,04,813 4.81	1,23,395 6.13	0.49
Nippon India Conservative Hybrid Dir Invest Online	High	Avg.	HY-CH	1,08,144 8.14	1,24,564 8.27	0.85
Parag Parikh Conservative Hybrid Dir Invest Online	Moderately High	High	HY-CH	1,05,833 5.83	1,23,827 6.92	0.24
SBI Children's Savings Plan Dir Invest Online	Moderately High	High	HY-CH	1,09,608 9.61	1,28,192 15.00	0.74
SBI Conservative Hybrid Dir Invest Online	High	Above Avg.	HY-CH	1,06,600 6.60	1,24,250 7.69	0.80
Bandhan Equity Savings Dir Invest Online	Low to Moderate	Below Avg.	HY-EQ S	1,05,641 5.64	1,23,976 7.19	0.15
DSP Equity Savings Dir	Moderate	Avg.	HY-EQ S	1,03,657 3.66	1,22,374 4.27	0.59
Edelweiss Equity Savings Dir	Moderate	Above Avg.	HY-EQ S	1,09,120 9.12	1,25,882 10.69	0.54
HSBC Equity Savings Dir	Moderate	High	HY-EQ S	1,11,063 11.06	1,27,359 13.44	0.57
ICICI Pru Equity Savings Dir	Low to Moderate	Below Avg.	HY-EQ S	1,03,924 3.92	1,22,129 3.83	0.43
Kotak Equity Savings Dir	Moderately High	High	HY-EQ S	1,07,890 7.89	1,24,403 7.97	0.57
UTI Equity Savings Dir	Moderately High	Avg.	HY-EQ S	1,06,079 6.08	1,22,984 5.38	0.64
ABSL Arbitrage Dir Invest Online	Low	Avg.	HY-AR	1,06,527 6.53	1,23,882 7.01	0.27
Axis Arbitrage Dir Invest Online	Low	Avg.	HY-AR	1,06,490 6.49	1,23,849 6.95	0.27
Edelweiss Arbitrage Dir	Low	Avg.	HY-AR	1,06,514 6.51	1,23,882 7.01	0.33
Invesco India Arbitrage Dir Invest Online	Low	Above Avg.	HY-AR	1,06,612 6.61	1,23,921 7.08	0.34
ITI Arbitrage Dir	Low	High	HY-AR	1,06,365 6.36	1,23,658 6.60	0.22
Kotak Arbitrage Dir	Low	Avg.	HY-AR	1,06,538 6.54	1,23,902 7.05	0.34
Mirae Asset Arbitrage Dir Invest Online	Low	Above Avg.	HY-AR	1,06,560 6.56	1,23,804 6.87	0.13
Motilal Oswal Arbitrage Dir	Low	High	HY-AR	1,06,911 6.91	1,24,069 7.36	0.10
Sundaram Arbitrage Dir	Low	High	HY-AR	1,06,611 6.61	1,24,067 7.35	0.20
Tata Arbitrage Dir Invest Online	Low	Above Avg.	HY-AR	1,06,591 6.59	1,23,889 7.03	0.26
UTI Arbitrage Dir Invest Online	Low	Avg.	HY-AR	1,06,428 6.43	1,23,782 6.83	0.24
WhiteOak Capital Arbitrage Dir Invest Online	Low	High	HY-AR	1,06,910 6.91	1,24,123 7.45	0.41
ABSL Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,10,014 10.01	1,27,604 13.89	0.59
Axis Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,06,447 6.45	1,24,225 7.64	0.72
DSP Dynamic Asset Allocation Dir	Moderately High	Avg.	HY-DAA	1,06,834 6.83	1,24,384 7.93	0.59
Franklin India Balanced Advantage Dir	Very High	Avg.	HY-DAA	1,04,230 4.23	1,23,256 5.87	0.47
Franklin India Dynamic Asset Allocation Active FoF Dir	High	Above Avg.	HY-DAA	1,04,159 4.16	1,23,255 5.87	0.82
HDFC Balanced Advantage Dir Invest Online	Very High	High	HY-DAA	1,04,501 4.50	1,22,910 5.24	0.64
ICICI Pru Balanced Advantage Dir	Very High	Above Avg.	HY-DAA	1,09,695 9.70	1,26,520 11.88	0.71
Mirae Asset Balanced Advantage Dir Invest Online	Very High	Avg.	HY-DAA	1,07,369 7.37	1,24,809 8.71	0.62
Nippon India Balanced Advantage Dir Invest Online	Very High	Avg.	HY-DAA	1,07,732 7.73	1,25,411 9.82	0.54
Quant Dynamic Asset Allocation Dir Invest Online	Very High	High	HY-DAA	1,02,166 2.17	1,23,150 5.68	0.73
SBI Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,06,573 6.57	1,22,873 5.17	0.58
WhiteOak Capital Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,07,017 7.02	1,25,907 10.74	0.52
Edelweiss Multi Asset Allocation Dir	Low	Low	HY-MAA	1,06,650 6.65	1,24,149 7.51	0.42
HDFC Multi-Asset Active FoF Dir Invest Online	Very High	Below Avg.	HY-MAA	1,10,286 10.29	1,25,386 9.78	0.12
ICICI Pru Multi Asset Dir	Very High	Above Avg.	HY-MAA	1,10,540 10.54	1,23,999 7.23	0.55
Nippon India Multi Asset Allocation Dir Invest Online	Very High	High	HY-MAA	1,18,251 18.25	1,27,747 14.16	0.31
Nippon India Multi-Asset Omni FoF Dir Invest Online	Very High	Above Avg.	HY-MAA	1,13,837 13.84	1,26,538 11.91	0.08
Quant Multi Asset Allocation Dir Invest Online	Very High	High	HY-MAA	1,21,299 21.30	1,29,699 17.83	0.55
SBI Multi Asset Allocation Dir Invest Online	Very High	Avg.	HY-MAA	1,14,873 14.87	1,25,260 9.55	0.47
WhiteOak Capital Multi Asset Allocation Dir Invest Online	High	Avg.	HY-MAA	1,14,637 14.64	1,27,113 12.98	0.39
Axis Gold Dir Invest Online	High	Below Avg.	Gold-Funds	1,47,234 47.23	1,28,213 15.03	0.15
Groww Gold ETF FOF Dir	High	Low	Gold-Funds	1,44,711 44.71	1,27,454 13.61	0.10
Quantum Gold ETF FoF Dir	High	Above Avg.	Gold-Funds	1,47,191 47.19	1,27,822 14.30	0.03
SBI Gold Dir Invest Online	High	Avg.	Gold-Funds	1,46,956 46.96	1,27,864 14.38	0.20
UTI Gold ETF FoF Dir	High	Above Avg.	Gold-Funds	1,47,026 47.03	1,27,905 14.46	0.07

India’s mutual fund industry in 2026: What the numbers show

The scale of retail participation in Indian mutual funds has crossed milestones this year that are directly relevant to you as an investor. According to AMFI’s March 2026 monthly data release (published on 10 April 2026), industry AUM stands at Rs 73.73 lakh crore, with a total of 27.39 crore folios. SIP contributions reached Rs 32,087 crore in March 2026, with approximately 9.72 crore contributing SIP accounts – the 61st consecutive month of positive equity net inflows according to AMFI.

The AUM figure reflects a market-correction-driven decline from Rs 82.03 lakh crore in February 2026, not investor exits. The mutual fund industry closed FY26 with AUM 12.2 per cent higher than FY25, compared to 23 per cent growth in FY25 and 36 per cent in FY24. The moderation is a natural consequence of market volatility rather than a withdrawal of investor confidence. Equity schemes drew net inflows of Rs 40,366 crore in March 2026 alone, a 55 per cent jump month-on-month.
One figure worth noting for first-time investors: according to AMFI’s January 2026 investor trends report, only 28.4 per cent of retail investor assets were held in direct plans. The remaining 71.6 per cent of retail assets were still invested via distributor (regular plan) routes – a gap that has direct compounding consequences over long horizons (see Section 3 below).

What the SEBI February 2026 circular means for your fund choices

SEBI issued a revised circular on categorisation and rationalisation of mutual fund schemes on 26 February 2026, superseding the earlier framework. Compliance is required within six months of this circular. Four changes are directly relevant to retail investors:

1. Categories expanded from 36 to 40. SEBI has added new categories, including Life Cycle Funds (goal-based, glide-path funds that shift from equity to debt as a target date approaches) and Sectoral Debt Funds (investing over 80 per cent in debt of a specific sector). For most retail investors, the core equity and hybrid categories remain unchanged in structure.
2. Minimum equity exposure raised to 80 per cent for several categories. Large-cap, mid-cap, small-cap, focused, contra, value, and dividend-yield equity funds must now invest at least 80 per cent of their assets in their stated market-cap segment. This ‘true-to-label’ mandate means a fund calling itself large-cap must genuinely hold large-cap stocks – reducing the risk of category drift that confused investors in the past.
3. Solution-oriented schemes discontinued. SEBI has eliminated the Children’s Funds and Retirement Funds categories. Existing schemes in these categories will not accept fresh investments and will eventually be merged into equivalent equity or hybrid schemes. If you hold SIPs in these fund types, watch for fund house communications on the merger timeline.
4. Portfolio overlap cap of 50 per cent for sectoral and thematic funds. Fund houses must ensure no more than 50 per cent overlap between their sectoral or thematic offerings and other equity schemes (except large-cap). This addresses the problem of investors buying three ‘different’ funds that actually hold the same 40 stocks. Existing schemes have three years to comply.

Direct plans vs Regular plans: The Rs 4–6 lakh gap most investors miss

Regular and direct plans of the same mutual fund hold identical portfolios, managed by the same fund manager. The only structural difference is the expense ratio. Regular plans embed a distributor trail commission in the expense ratio; direct plans do not. For equity funds, this difference typically ranges from 0.5 per cent to 1.5 per cent per annum.
To make this concrete: an investor putting Rs 10,00,000 into a fund delivering 12 per cent gross annual return would accumulate approximately Rs 31.1 lakh over 15 years in the direct plan (0.5 per cent expense ratio, 11.5 per cent net return). The same investor in the regular plan of the same fund, with a 1.5 per cent total expense ratio (10.5 per cent net return), would accumulate approximately Rs 26.5 lakh – a Rs 4.6 lakh difference on a single Rs 10 lakh investment over 15 years. Actual figures depend on the specific fund’s expense ratios.
This gap explains the AMFI January 2026 data point: only 28.4 per cent of retail assets are in direct plans. The 71.6 per cent still in regular plans represents a structural wealth erosion that most investors are unaware of. Value Research Fund Ratings are published separately for direct and regular plans; a regular plan typically carries a lower star rating than its direct equivalent because its higher expense ratio reduces net risk-adjusted returns.
Use the Fund Screener and always confirm you are looking at the direct plan column. Use the Fund Compare tool to verify expense ratio differences side by side before investing.

Mutual fund categories: matching your goal to the right category

Under SEBI’s revised February 2026 framework, mutual funds in India are now organised into 40 categories. The table below covers the categories most relevant to retail investors, updated to reflect the new structure:

Category	Suitable For	Min. Equity (SEBI 2026)	Typical Horizon	Risk Level
Large Cap Equity	Core portfolio, first-time equity investors	80 per cent in the top 100 cos.	5+ years	Moderate-High
Flexi Cap Equity	Active allocation across all market caps	65 per cent equity min.	5+ years	Moderate-High
Large & Mid Cap	Blended exposure to top 200 companies	35 per cent large + 35 per cent mid	5+ years	Moderate-High
Mid Cap Equity	Higher growth, higher volatility	80 per cent in top 101–250 cos.	7+ years	High
Small Cap Equity	Satellite allocation, experienced investors	80 per cent in companies beyond top 250	7–10+ years	Very High
Multi-Cap Equity	Diversified across all caps, min 25 per cent each	25 per cent large + 25 per cent mid + 25 per cent small	5+ years	High
ELSS (Tax-Saving)	Section 80C savings + equity; 3-yr lock-in	80 per cent equity min.	3+ years (lock-in)	Moderate-High
Aggressive Hybrid	First-time equity investors, stability + growth	65–80 per cent equity	5+ years	Moderate-High
Debt: Short Duration	Short-term parking, 1–3 year horizon	N/A (debt only)	1–3 years	Low-Moderate
Debt: Liquid	Emergency corpus, idle cash management	N/A (debt only)	Up to 3 months	Low
Index Funds / ETFs	Low-cost passive market participation	Tracks index (95 per cent+)	5+ years	Moderate-High
Life Cycle Funds (NEW – 2026)	Long-term goal-based investing with auto glide path	Glide path: starts high equity, shifts to debt	10+ years	Starts High, Reduces Over Time

How to use the Value Research fund screener to find your fund

The Fund Screener translates your financial goal into a shortlist in three steps.

Step 1 – Pick your category first. Use the SEBI category table above. If you are a first-time investor, large-cap or aggressive hybrid categories offer a more stable starting point. If your horizon is under three years, stay within debt categories. Do not move to mid- or small-cap categories before establishing a core large-cap or flexi-cap holding.
Step 2 – Filter by VRO Star Rating. The Value Research Fund Rating evaluates risk-adjusted returns using rolling 3-year and 5-year windows against all peers in the same SEBI category. Only funds with a minimum three-year track record and at least 10 peers in their category qualify for a rating. A 4-star or 5-star fund has delivered better risk-adjusted returns than most category peers – not the highest returns, but the best returns relative to the risk taken.
Step 3 – Verify the direct plan and expense ratio. For equity funds, a direct plan expense ratio above 1.2 per cent is worth questioning. For index funds, above 0.25 per cent in the direct plan is expensive relative to market benchmarks. If the fund you are looking at is listed only in the regular plan column, you may be viewing a distributor-facing interface – switch to direct.

SIP vs lump sum in 2026: what a 25-year study shows

A Systematic Investment Plan (SIP) invests a fixed rupee amount in a chosen fund at regular intervals. For a full explanation, including step-up SIPs and pause mechanics, see the Value Research guide What is an SIP and how does it work?.
AMFI data shows SIP contributions crossed Rs 32,087 crore in March 2026 – up from Rs 29,845 crore in February. This sustained SIP momentum during a market correction (the industry AUM fell by over 10 per cent in March due to equity mark-to-market losses) directly illustrates the core advantage of SIPs: investors continued systematic investing through volatility rather than waiting for a recovery.
Value Research’s 25-year SIP study found that for equity SIPs with 7-year or longer horizons, negative-return outcomes were rare regardless of market entry point. For horizons under 5 years in equity, return outcomes were significantly more variable. This is why equity mutual funds are generally unsuitable for goals with a timeline under five years.
For investors with a lump sum, a Systematic Transfer Plan (STP) – parking the lump sum in a liquid fund and transferring a fixed amount to an equity fund each month – provides rupee cost averaging while keeping idle money earning a return.

Mutual fund taxation in FY 2026–27: Current applicable rules

Union Budget 2026 made no changes to capital gains tax rates on mutual funds. The framework established by the Finance Act 2024 (effective 23 July 2024) continues to apply for FY 2026–27:

Fund Type	Holding Period	Tax Treatment (FY 2026-27)
Equity-oriented funds (≥65 per cent in Indian equity)	≤12 months (STCG)	20 per cent + cess & surcharge
Equity-oriented funds (≥65 per cent in Indian equity)	>12 months (LTCG)	12.5 per cent on gains above Rs 1.25 lakh p.a. No indexation benefit
ELSS funds	>36 months (mandatory lock-in)	12.5 per cent LTCG on gains above Rs 1.25 lakh p.a.
Debt funds (≤35 per cent equity, bought after 1 Apr 2023)	Any period	Taxed at income slab rate (no LTCG/STCG distinction)
Aggressive Hybrid (65–80 per cent equity)	≤12 months (STCG)	20 per cent + cess & surcharge
Aggressive Hybrid (65–80 per cent equity)	>12 months (LTCG)	12.5 per cent on gains above Rs 1.25 lakh p.a.

Important note for SIP investors: each SIP instalment is a separate purchase with its own holding period. When you redeem, older instalments may qualify as LTCG while recent ones may be STCG – a single redemption can contain both components. Tax is assessed in instalments using the FIFO (first-in, first-out) method.
ELSS investors under the Old Tax Regime can claim a deduction of up to Rs 1.5 lakh under Section 80C on the invested amount, in addition to the LTCG treatment on gains after the 3-year lock-in.

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FAQs about best mutual funds

What are mutual funds, and why should I invest in them?

Mutual funds are professionally managed investment vehicles that pool money from investors to build a diversified portfolio of stocks, bonds, or other securities. They are ideal for achieving both short-term and long-term financial goals, offering diversification, liquidity, and the benefit of professional management. Mutual funds are a great choice for investors of all experience levels.

What are the best mutual funds to invest in for 2026?

The best funds for you depend on your financial goals, risk appetite, and investment horizon. For long-term wealth creation, consider large-cap equity funds, flexi-cap funds, or index funds. If you’re seeking stability, debt funds or balanced hybrid funds are excellent options. At Value Research, we curate and rate funds based on performance, consistency, and risk to help you make the best choice.

How do I track the performance of my mutual funds?

You can easily track your mutual fund performance using tools like the Portfolio Tracker. This tool allows you to monitor returns, analyse historical performance, and compare funds across categories to stay on top of your investments.

Are mutual funds safe?

Mutual funds come with market-related risks, but diversification helps reduce the impact of individual asset performance. For risk-averse investors, debt funds, liquid funds, or aggressive hybrid funds offer relatively safer investment options. Remember, aligning your fund selection with your goals and time horizon is key to mitigating risks.

Can I withdraw from a mutual fund anytime?

Yes, most mutual funds allow withdrawals at any time, offering liquidity. However, some funds, like ELSS (Equity Linked Savings Schemes), have a lock-in period, and others may charge an exit load for early redemptions. Always review the fund terms to avoid surprises.

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Is a high-NAV mutual fund more expensive than a low-NAV one?

No. NAV (Net Asset Value) is simply the per-unit value of a fund's portfolio on a given day. A fund with a NAV of Rs 500 and one with a NAV of Rs 50 can have identical expense ratios and identical costs to the investor. What makes a fund costly to own is a high expense ratio, not its NAV. The belief that NFOs (new fund offers) with a low NAV of Rs 10 are common is a common false belief with no basis in fund economics.

What changed with SEBI's February 2026 circular – should I restructure my portfolio?

For most retail investors holding diversified equity or hybrid funds, the February 2026 circular does not require immediate action. The removal of solution-oriented schemes (children's and retirement funds) is the main category affecting existing SIPs. If you hold such a fund, your fund house will write to you with merger details before the scheme closes to fresh investments. The 80 per cent equity mandate for large-cap, mid-cap, and small-cap funds reinforces rather than changes the existing category behaviour.

Can I switch from a regular plan to a direct plan of the same fund?

Yes, but switching is treated as a redemption and fresh purchase for tax purposes. For equity funds held over 12 months, LTCG above Rs 1.25 lakh is taxed at 12.5 per cent under the current applicable law. For holdings under 12 months, STCG is taxed at 20 per cent. The long-term cost savings from the direct plan typically outweigh the one-time tax on switching for investors with long remaining horizons, but this depends on your specific corpus, gain, and tax position. Consult a SEBI-registered investment adviser before switching.

How many mutual funds should I hold?

Holding more than 5–7 equity funds rarely adds diversification – it adds complexity and overlap. A flexi-cap fund already invests across large, mid, and small caps; adding separate large-cap and mid-cap funds on top typically replicates the same exposure at higher combined cost. Use the Fund Compare tool to check portfolio overlap before adding any new fund to your portfolio.

Do mutual fund returns come with any guarantee?

No mutual fund in India – equity, debt, or hybrid – offers guaranteed returns. SEBI regulations explicitly prohibit mutual funds from assuring any specific return. Even liquid and overnight funds, while the lowest-risk mutual fund categories, carry credit risk and are not capital-guaranteed. Be wary of any communication implying a guaranteed return from a mutual fund.