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	98,666 -1.33	1,17,439 -4.25	0.26
ABSL Nifty Next 50 Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,02,567 2.57	1,22,096 3.52	0.30
Axis Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,02,720 2.72	1,22,152 3.62	0.12
Bandhan Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	98,810 -1.19	1,19,004 -1.66	0.76
Bank of India Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,02,283 2.28	1,20,562 0.94	0.87
Baroda BNP Paribas Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	98,513 -1.49	1,18,549 -2.42	0.69
DSP Large Cap Dir	Very High	Avg.	EQ-LC	92,903 -7.10	1,14,344 -9.30	0.77
DSP Nifty 50 Equal Weight Index Dir	Very High	Above Avg.	EQ-LC	98,699 -1.30	1,17,452 -4.23	0.35
DSP Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,02,576 2.58	1,22,077 3.49	0.24
Edelweiss Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,02,645 2.65	1,22,157 3.63	0.07
HDFC Large Cap Dir Invest Online	Very High	Avg.	EQ-LC	95,816 -4.18	1,16,744 -5.39	0.83
HDFC NIFTY 100 Equal Wght Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,00,238 0.24	1,19,662 -0.56	0.36
HDFC NIFTY50 Equal Weight Index Dir Invest Online	Very High	Above Avg.	EQ-LC	98,587 -1.41	1,17,362 -4.38	0.34
HDFC NIFTY Next 50 Index Dir Invest Online	Very High	Above Avg.	EQ-LC	1,02,484 2.48	1,22,034 3.42	0.25
HSBC Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,02,229 2.23	1,21,877 3.15	0.28
ICICI Pru Large Cap Dir	Very High	Above Avg.	EQ-LC	93,613 -6.39	1,14,309 -9.36	0.71
ICICI Pru Nifty50 Equal Weight Index Dir	Very High	Above Avg.	EQ-LC	98,623 -1.38	1,17,406 -4.30	0.22
ICICI Pru Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,02,384 2.38	1,21,972 3.31	0.26
Invesco India Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	1,00,517 0.52	1,22,128 3.58	0.66
JM Large Cap Dir	Very High	Above Avg.	EQ-LC	97,458 -2.54	1,18,376 -2.70	0.82
Kotak Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,02,679 2.68	1,22,152 3.62	0.08
LIC MF Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,02,893 2.89	1,22,416 4.07	0.23
Motilal Oswal Nifty Next 50 Index Dir	Very High	High	EQ-LC	1,02,529 2.53	1,22,056 3.46	0.27
Navi Nifty Next 50 Index Dir	Very High	Above Avg.	EQ-LC	1,02,512 2.51	1,22,060 3.46	0.15
Nippon India Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	93,978 -6.02	1,15,714 -7.08	0.57
Nippon India Nifty Next 50 Junior BeES FoF Dir Invest Online	Very High	Above Avg.	EQ-LC	1,03,237 3.24	1,22,585 4.35	0.11
SBI Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,02,575 2.57	1,22,100 3.53	0.26
Sundaram Nifty 100 Equal Weight Dir	Very High	Above Avg.	EQ-LC	1,00,553 0.55	1,19,919 -0.14	0.49
UTI NIFTY50 Equal Wght Index Dir Invest Online	Very High	Avg.	EQ-LC	98,726 -1.27	1,17,452 -4.23	0.31
UTI Nifty Next 50 Index Dir Invest Online	Very High	High	EQ-LC	1,02,617 2.62	1,22,116 3.56	0.31
WhiteOak Capital Large Cap Dir Invest Online	Very High	Above Avg.	EQ-LC	97,931 -2.07	1,18,536 -2.44	0.53
Bandhan Large & Mid Cap Dir Invest Online	Very High	High	EQ-L&MC	1,02,285 2.28	1,21,485 2.49	0.44
HDFC Large & Mid Cap Dir Invest Online	Very High	Above Avg.	EQ-L&MC	98,643 -1.36	1,19,759 -0.40	0.75
HSBC Large and Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	1,07,211 7.21	1,27,317 12.48	0.65
ICICI Pru Large & Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	98,299 -1.70	1,18,217 -2.96	0.67
Invesco India Large & Mid Cap Dir Invest Online	Very High	High	EQ-L&MC	1,05,255 5.26	1,27,986 13.64	0.54
Motilal Oswal Large and Midcap Dir	Very High	High	EQ-L&MC	1,06,161 6.16	1,29,694 16.63	0.59
Nippon India Vision Large & Mid Cap Dir Invest Online	Very High	Above Avg.	EQ-L&MC	97,549 -2.45	1,18,842 -1.93	0.90
SBI Large & Midcap Dir Invest Online	Very High	Avg.	EQ-L&MC	99,616 -0.38	1,17,864 -3.55	0.59
UTI Large & Mid Cap Dir	Very High	Above Avg.	EQ-L&MC	1,00,593 0.59	1,19,178 -1.37	0.77
360 ONE Flexicap Dir	Very High	Above Avg.	EQ-FLX	1,05,774 5.77	1,28,088 13.82	0.51
ABSL Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,05,544 5.54	1,23,665 6.19	0.69
ABSL Retirement 30s Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,10,469 10.47	1,28,563 14.65	0.97
Bajaj Finserv Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,03,336 3.34	1,23,998 6.76	0.47
Bank of India Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	1,09,750 9.75	1,28,142 13.91	0.48
Edelweiss Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	99,651 -0.35	1,19,091 -1.52	0.47
Franklin India Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	94,954 -5.05	1,16,525 -5.75	0.76
HDFC Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	99,418 -0.58	1,20,140 0.23	0.57
HDFC Retirement Equity Dir Invest Online	Very High	Avg.	EQ-FLX	93,436 -6.56	1,15,483 -7.45	0.74
HSBC Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,03,661 3.66	1,24,939 8.37	0.90
ICICI Pru Diversified Equity All Cap Omni FoF Dir	Very High	Above Avg.	EQ-FLX	99,754 -0.25	1,19,435 -0.95	0.39
ICICI Pru Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,02,618 2.62	1,23,839 6.48	0.65
ICICI Pru Retirement Pure Equity Dir	Very High	High	EQ-FLX	1,04,896 4.90	1,22,254 3.79	0.63
Invesco India Flexi Cap Dir Invest Online	Very High	High	EQ-FLX	98,980 -1.02	1,24,426 7.49	0.51
ITI Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	1,09,539 9.54	1,29,312 15.96	0.53
JM Flexi Cap Dir	Very High	Above Avg.	EQ-FLX	99,260 -0.74	1,23,911 6.61	0.54
Parag Parikh Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	94,754 -5.25	1,16,816 -5.27	0.53
SBI Children's Investment Plan Dir Invest Online	Very High	High	EQ-FLX	1,13,098 13.10	1,29,724 16.68	0.74
Union Retirement Dir	Very High	Avg.	EQ-FLX	1,02,107 2.11	1,21,500 2.52	0.98
WhiteOak Capital Flexi Cap Dir Invest Online	Very High	Above Avg.	EQ-FLX	1,02,063 2.06	1,23,157 5.32	0.47
Canara Robeco Focused Dir Invest Online	Very High	Avg.	EQ-Focused	95,967 -4.03	1,18,426 -2.62	0.48
HDFC Focused Dir Invest Online	Very High	High	EQ-Focused	97,163 -2.84	1,18,557 -2.40	0.61
ICICI Pru Focused Dir	Very High	High	EQ-Focused	98,429 -1.57	1,18,594 -2.34	0.57
Invesco India Focused Dir Invest Online	Very High	High	EQ-Focused	1,00,645 0.64	1,28,258 14.11	0.49
ITI Focused Dir	Very High	High	EQ-Focused	1,06,302 6.30	1,23,168 5.34	0.59
Kotak Focused Dir	Very High	Above Avg.	EQ-Focused	1,03,376 3.38	1,20,454 0.76	0.51
Mahindra Manulife Focused Dir	Very High	Above Avg.	EQ-Focused	98,083 -1.92	1,16,329 -6.07	0.52
SBI Focused Dir Invest Online	Very High	Avg.	EQ-Focused	1,09,360 9.36	1,25,163 8.75	0.57
Axis Multicap Dir Invest Online	Very High	High	EQ-MLC	1,07,008 7.01	1,28,733 14.94	0.65
Bank of India Multi Cap Dir	Very High	Above Avg.	EQ-MLC	1,09,913 9.91	1,26,784 11.55	0.73
HSBC Multi Cap Dir	Very High	High	EQ-MLC	1,05,453 5.45	1,25,824 9.89	0.51
ICICI Pru Multi Cap Dir	Very High	Avg.	EQ-MLC	1,04,036 4.04	1,23,339 5.63	0.78
Kotak Multi Cap Dir	Very High	High	EQ-MLC	1,02,631 2.63	1,20,997 1.67	0.42
Mahindra Manulife Multi Cap Dir	Very High	Above Avg.	EQ-MLC	1,11,144 11.14	1,29,952 17.08	0.44
Baroda BNP Paribas Midcap Dir Invest Online	Very High	Avg.	EQ-MC	1,08,400 8.40	1,24,871 8.25	0.49
Edelweiss Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,04,962 4.96	1,23,723 6.29	0.41
HDFC Mid Cap Dir Invest Online	Very High	Above Avg.	EQ-MC	1,04,919 4.92	1,23,193 5.38	0.60
HSBC Midcap Dir	Very High	High	EQ-MC	1,15,971 15.97	1,33,419 23.24	0.53
ICICI Pru Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,10,490 10.49	1,25,316 9.02	0.88
Invesco India Mid Cap Dir Invest Online	Very High	High	EQ-MC	1,06,689 6.69	1,27,611 12.99	0.47
JM Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,06,028 6.03	1,29,662 16.58	0.53
Mahindra Manulife Mid Cap Dir	Very High	Above Avg.	EQ-MC	1,06,839 6.84	1,23,746 6.33	0.48
Nippon India Growth Mid Cap Dir Invest Online	Very High	High	EQ-MC	1,04,631 4.63	1,23,546 5.99	0.57
Sundaram Midcap Dir	Very High	Avg.	EQ-MC	1,03,701 3.70	1,22,647 4.46	0.75
WhiteOak Capital Mid Cap Fund Dir Invest Online	Very High	High	EQ-MC	1,11,104 11.10	1,29,099 15.59	0.43
Axis Nifty Smallcap 50 Index Dir Invest Online	Very High	Above Avg.	EQ-SC	1,10,679 10.68	1,33,490 23.37	0.23
Bandhan Small Cap Dir Invest Online	Very High	High	EQ-SC	1,08,532 8.53	1,30,977 18.90	0.35
Bank of India Small Cap Dir Invest Online	Very High	High	EQ-SC	1,23,002 23.00	1,44,293 43.20	0.41
Edelweiss Small Cap Dir	Very High	Avg.	EQ-SC	1,06,088 6.09	1,27,918 13.52	0.43
Invesco India Small Cap Dir Invest Online	Very High	Above Avg.	EQ-SC	1,12,920 12.92	1,33,864 24.04	0.40
ITI Small Cap Dir	Very High	Above Avg.	EQ-SC	1,17,753 17.75	1,38,980 33.33	0.45
Kotak Nifty Smallcap 50 Index Dir	Very High	Above Avg.	EQ-SC	1,10,403 10.40	1,33,359 23.13	0.17
Mahindra Manulife Small Cap Dir	Very High	Above Avg.	EQ-SC	1,14,412 14.41	1,35,843 27.61	0.47
Nippon India Small Cap Dir Invest Online	Very High	Avg.	EQ-SC	1,06,301 6.30	1,29,102 15.59	0.51
Sundaram Small Cap Dir	Very High	Avg.	EQ-SC	1,12,447 12.45	1,33,174 22.80	0.72
Union Small Cap Dir	Very High	Above Avg.	EQ-SC	1,18,128 18.13	1,37,766 31.10	0.77
Axis Value Dir Invest Online	Very High	Above Avg.	EQ-VAL	1,06,137 6.14	1,24,786 8.10	0.63
DSP Value Fund Dir	Very High	Avg.	EQ-VAL	1,04,996 5.00	1,20,201 0.34	1.01
HDFC Value Dir Invest Online	Very High	Above Avg.	EQ-VAL	1,04,633 4.63	1,23,650 6.16	0.86
HSBC Value Dir	Very High	High	EQ-VAL	1,01,774 1.77	1,19,684 -0.53	0.64
ICICI Pru Value Dir	Very High	Avg.	EQ-VAL	93,869 -6.13	1,13,503 -10.66	0.79
Kotak Contra Dir	Very High	Above Avg.	EQ-VAL	99,012 -0.99	1,18,521 -2.46	0.55
Motilal Oswal BSE Enhanced Value Index Dir	Very High	High	EQ-VAL	1,05,857 5.86	1,15,110 -8.06	0.35
Nippon India Value Dir Invest Online	Very High	Above Avg.	EQ-VAL	95,881 -4.12	1,16,194 -6.29	0.89
Quant Value Dir Invest Online	Very High	High	EQ-VAL	1,14,592 14.59	1,28,196 14.01	0.46
SBI Contra Dir Invest Online	Very High	Avg.	EQ-VAL	96,218 -3.78	1,16,296 -6.13	0.61
UTI Nifty 500 Value 50 Index Dir Invest Online	Very High	High	EQ-VAL	1,09,278 9.28	1,19,187 -1.36	0.50
Baroda BNP Paribas ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-E-TS	1,02,808 2.81	1,21,375 2.31	0.93
DSP ELSS Tax Saver Dir	Very High	Above Avg.	EQ-E-TS	97,084 -2.92	1,16,638 -5.56	0.67
Edelweiss ELSS Tax Saver Dir	Very High	Avg.	EQ-E-TS	1,03,220 3.22	1,20,865 1.45	0.69
HDFC ELSS - Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-E-TS	93,292 -6.71	1,15,696 -7.11	0.96
HSBC ELSS Tax Saver Dir	Very High	Above Avg.	EQ-E-TS	1,02,146 2.15	1,23,517 5.94	0.96
JM ELSS - Tax Saver Dir	Very High	Above Avg.	EQ-E-TS	1,05,367 5.37	1,27,543 12.87	0.93
Motilal Oswal ELSS Tax Saver Dir	Very High	High	EQ-E-TS	1,07,276 7.28	1,30,915 18.79	0.63
Nippon India ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-E-TS	98,165 -1.84	1,18,493 -2.51	0.87
Parag Parikh ELSS Tax Saver Dir Invest Online	Very High	Avg.	EQ-E-TS	88,819 -11.18	1,14,091 -9.71	0.54
Quant ELSS Tax Saver Dir Invest Online	Very High	High	EQ-E-TS	1,09,734 9.73	1,27,162 12.20	0.67
SBI ELSS Tax Saver Dir Invest Online	Very High	Above Avg.	EQ-E-TS	95,136 -4.86	1,15,393 -7.60	0.83
WhiteOak Capital ELSS Tax Saver Dir Invest Online	Very High	High	EQ-E-TS	1,01,427 1.43	1,23,421 5.77	0.63
Bandhan Financial Services Dir	Very High	Above Avg.	EQ-SB&FS	1,01,961 1.96	1,21,033 1.73	0.58
Invesco India Financial Services Dir Invest Online	Very High	High	EQ-SB&FS	1,06,248 6.25	1,21,231 2.06	0.70
Kotak Nifty Financial Services Ex-Bank Index Dir	Very High	Above Avg.	EQ-SB&FS	1,02,748 2.75	1,19,623 -0.63	0.18
Motilal Oswal BSE Fins ex Bank 30 Index Dir	Very High	Above Avg.	EQ-SB&FS	99,021 -0.98	1,18,895 -1.84	0.37
Nippon India Banking & Financial Srvices Dir Invest Online	Very High	Above Avg.	EQ-SB&FS	1,01,999 2.00	1,19,258 -1.24	0.82
Quant BFSI Dir Invest Online	Very High	High	EQ-SB&FS	1,15,511 15.51	1,29,171 15.71	0.64
SBI Banking & Financial Services Dir Invest Online	Very High	Above Avg.	EQ-SB&FS	1,00,301 0.30	1,16,947 -5.06	0.34
Sundaram Financial Services Opportunities Dir	Very High	Above Avg.	EQ-SB&FS	1,08,154 8.15	1,22,155 3.62	0.67
ICICI Pru Healthcare Dir	Very High	Above Avg.	EQ-Pharma	1,04,970 4.97	1,26,816 11.61	0.88
SBI Healthcare Opportunities Dir Invest Online	Very High	High	EQ-Pharma	1,19,186 19.19	1,38,440 32.34	0.76
UTI Healthcare Dir	Very High	Above Avg.	EQ-Pharma	1,14,313 14.31	1,36,111 28.09	0.98
HDFC Consumption Dir Invest Online	Very High	Above Avg.	EQ-Consumption	90,773 -9.23	1,18,224 -2.95	0.96
ICICI Pru Bharat Consumption Dir	Very High	Above Avg.	EQ-Consumption	93,347 -6.65	1,19,034 -1.61	0.95
Mirae Asset Great Consumer Dir Invest Online	Very High	Above Avg.	EQ-Consumption	93,550 -6.45	1,20,573 0.96	0.43
Nippon India Consumption Dir Invest Online	Very High	Above Avg.	EQ-Consumption	91,360 -8.64	1,19,193 -1.35	0.59
Tata India Consumer Dir Invest Online	Very High	High	EQ-Consumption	1,01,971 1.97	1,26,513 11.08	0.62
Bank of India Manufacturing & Infra Dir Invest Online	Very High	Above Avg.	EQ-INFRA	1,14,132 14.13	1,29,034 15.47	0.59
Canara Robeco Infrastructure Dir Invest Online	Very High	Avg.	EQ-INFRA	99,151 -0.85	1,18,601 -2.33	0.84
DSP India T.I.G.E.R. Dir	Very High	High	EQ-INFRA	1,11,711 11.71	1,28,460 14.47	0.73
Franklin Build India Dir	Very High	Avg.	EQ-INFRA	96,433 -3.57	1,14,777 -8.60	0.83
ICICI Pru Infrastructure Dir	Very High	Above Avg.	EQ-INFRA	1,00,234 0.23	1,19,533 -0.78	0.99
LIC MF Infrastructure Dir Invest Online	Very High	High	EQ-INFRA	1,06,150 6.15	1,25,446 9.24	0.68
ABSL Long Term Dir Invest Online	Moderate	Above Avg.	DT-LT	1,03,271 3.27	1,21,985 3.34	0.36
Bandhan Long Term Dir	Moderate	Above Avg.	DT-LT	1,03,857 3.86	1,22,484 4.18	0.24
Franklin India Long Term Fund Dir	Moderate	High	DT-LT	1,04,059 4.06	1,22,212 3.72	0.30
ICICI Pru Long Term Dir	Moderate	Above Avg.	DT-LT	1,02,502 2.50	1,21,416 2.38	0.37
ICICI Pru Diversified Debt Strategy Active FoF Dir	Moderately High	Above Avg.	DT-MTLT	1,05,375 5.37	1,23,143 5.30	0.38
ICICI Pru Medium to Long Term Dir	Moderate	Above Avg.	DT-MTLT	1,04,716 4.72	1,22,650 4.46	0.50
JM Medium to Long Term Dir	Moderate	Avg.	DT-MTLT	1,03,432 3.43	1,21,932 3.25	0.50
LIC MF Medium to Long Term Dir Invest Online	Moderate	High	DT-MTLT	1,05,005 5.01	1,23,044 5.13	0.18
Axis Short Term Dir Invest Online	Moderate	Above Avg.	DT-ST	1,05,958 5.96	1,23,520 5.94	0.32
Bandhan Short Term Dir Invest Online	Low to Moderate	High	DT-ST	1,06,350 6.35	1,23,940 6.66	0.29
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL SD Index Dir	Moderate	High	DT-ST	1,05,184 5.18	1,22,829 4.77	0.17
Groww Short Term Dir	Low to Moderate	Above Avg.	DT-ST	1,05,713 5.71	1,23,515 5.94	0.25
HDFC Short Term Dir Invest Online	Moderate	Avg.	DT-ST	1,05,664 5.66	1,23,209 5.41	0.33
ICICI Pru Short Term Dir	Moderate	High	DT-ST	1,06,230 6.23	1,23,577 6.04	0.38
Nippon India Short Term Dir Invest Online	Moderate	Above Avg.	DT-ST	1,05,827 5.83	1,23,311 5.59	0.32
Sundaram Short Term Dir	Low to Moderate	Avg.	DT-ST	1,05,608 5.61	1,23,306 5.58	0.24
Axis Ultra Short to Short Term Dir Invest Online	Low to Moderate	Above Avg.	DT-USTST	1,06,430 6.43	1,23,867 6.54	0.30
ICICI Pru Ultra Short to Short Term Dir	Low to Moderate	High	DT-USTST	1,06,504 6.50	1,23,876 6.55	0.36
Kotak Ultra Short to Short Term Dir	Low to Moderate	High	DT-USTST	1,06,462 6.46	1,23,879 6.55	0.34
Mahindra Manulife Ultra Short to Short Term Dir	Moderate	Avg.	DT-USTST	1,06,456 6.46	1,23,938 6.66	0.29
Mirae Asset Ultra Short to Short Term Dir Invest Online	Low to Moderate	Above Avg.	DT-USTST	1,06,452 6.45	1,23,916 6.62	0.17
Nippon India Ultra Short to Short Term Dir Invest Online	Low to Moderate	Above Avg.	DT-USTST	1,06,493 6.49	1,23,912 6.61	0.33
Axis Ultra Short Term Dir Invest Online	Moderate	Above Avg.	DT-UST	1,06,811 6.81	1,24,173 7.06	0.30
Invesco India Ultra Short Term Dir Invest Online	Low to Moderate	Avg.	DT-UST	1,06,781 6.78	1,24,186 7.08	0.21
ITI Ultra Short Term Dir	Low to Moderate	Avg.	DT-UST	1,06,492 6.49	1,23,936 6.65	0.17
LIC MF Ultra Short Term Direct Invest Online	Low to Moderate	Above Avg.	DT-UST	1,06,731 6.73	1,24,198 7.10	0.21
Mahindra Manulife Ultra Short Term Dir	Low to Moderate	Avg.	DT-UST	1,06,679 6.68	1,24,109 6.95	0.26
Mirae Asset Ultra Short-Term Dir Invest Online	Low to Moderate	Above Avg.	DT-UST	1,06,703 6.70	1,24,095 6.92	0.18
Motilal Oswal Ultra Short Term Dir	Low to Moderate	Below Avg.	DT-UST	1,06,203 6.20	1,23,826 6.47	0.21
Tata Ultra Short Term Dir Invest Online	Moderate	High	DT-UST	1,07,024 7.02	1,24,333 7.33	0.26
ABSL Liquid Dir Invest Online	Moderate	High	DT-LIQ	1,06,580 6.58	1,24,024 6.77	0.18
Axis Liquid Dir Invest Online	Low to Moderate	High	DT-LIQ	1,06,586 6.59	1,24,032 6.79	0.11
Bank of India Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,522 6.52	1,23,993 6.72	0.07
Edelweiss Liquid Dir	Low to Moderate	High	DT-LIQ	1,06,553 6.55	1,24,009 6.75	0.09
Franklin India Liquid Super Inst Plan Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,544 6.54	1,24,013 6.75	0.12
Groww Liquid Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,511 6.51	1,23,980 6.70	0.09
Invesco India Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,508 6.51	1,23,989 6.71	0.13
Mahindra Manulife Liquid Dir	Moderate	Above Avg.	DT-LIQ	1,06,543 6.54	1,24,008 6.74	0.13
Nippon India Liquid Dir Invest Online	Moderate	Above Avg.	DT-LIQ	1,06,552 6.55	1,24,016 6.76	0.17
PGIM India Liquid Dir	Low to Moderate	High	DT-LIQ	1,06,532 6.53	1,23,998 6.73	0.10
Tata Liquid Dir Invest Online	Low to Moderate	Above Avg.	DT-LIQ	1,06,507 6.51	1,23,973 6.68	0.19
Union Liquid Dir	Low to Moderate	Above Avg.	DT-LIQ	1,06,512 6.51	1,23,969 6.68	0.06
Axis Money Market Dir Invest Online	Moderate	Above Avg.	DT-MM	1,06,647 6.65	1,24,112 6.95	0.13
Bajaj Finserv Money Market Dir	Low to Moderate	Above Avg.	DT-MM	1,06,572 6.57	1,24,057 6.86	0.10
Bandhan Money Market Dir Invest Online	Low to Moderate	High	DT-MM	1,06,681 6.68	1,24,123 6.97	0.09
Kotak Money Market Dir	Moderate	Above Avg.	DT-MM	1,06,611 6.61	1,24,094 6.92	0.14
LIC MF Money Market Dir Invest Online	Low to Moderate	Below Avg.	DT-MM	1,06,674 6.67	1,24,135 6.99	0.14
Tata Money Market Dir Invest Online	Moderate	High	DT-MM	1,06,684 6.68	1,24,141 7.00	0.15
Union Money Market Dir	Low to Moderate	Above Avg.	DT-MM	1,06,816 6.82	1,24,239 7.17	0.14
Axis Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,305 5.30	1,23,114 5.23	0.06
Bajaj Finserv Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,331 5.33	1,23,122 5.24	0.07
Bandhan Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,274 5.27	1,23,097 5.20	0.04
Bank of India Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,504 5.50	1,23,262 5.48	0.08
Baroda BNP Paribas Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,295 5.29	1,23,110 5.22	0.05
Franklin India Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,331 5.33	1,23,130 5.25	0.06
HSBC Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,275 5.28	1,23,097 5.20	0.05
ICICI Pru Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,279 5.28	1,23,099 5.20	0.07
Kotak Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,288 5.29	1,23,107 5.22	0.06
Mahindra Manulife Overnight Dir	Low	Above Avg.	DT-OVERNHT	1,05,255 5.26	1,23,079 5.17	0.06
Mirae Asset Overnight Dir Invest Online	Low	Above Avg.	DT-OVERNHT	1,05,279 5.28	1,23,097 5.20	0.07
Tata Overnight Dir Invest Online	Low	High	DT-OVERNHT	1,05,308 5.31	1,23,118 5.23	0.05
360 ONE Dynamic Term Dir	Moderately High	High	DT-DT	1,05,613 5.61	1,23,313 5.59	0.29
Axis Dynamic Term Dir Invest Online	Moderate	Above Avg.	DT-DT	1,06,400 6.40	1,23,812 6.44	0.27
Mirae Asset Dynamic Term Dir Invest Online	Moderate	Avg.	DT-DT	1,04,813 4.81	1,22,280 3.84	0.14
Nippon India Dynamic Term Dir Invest Online	Moderate	Above Avg.	DT-DT	1,05,425 5.43	1,22,779 4.68	0.30
SBI Dynamic Term Dir Invest Online	Low to Moderate	Above Avg.	DT-DT	1,05,648 5.65	1,23,635 6.14	0.53
UTI Dynamic Term Dir	Low to Moderate	Above Avg.	DT-DT	1,05,342 5.34	1,23,074 5.18	0.74
Axis Corporate Bond Dir Invest Online	Moderate	High	DT-CB	1,05,666 5.67	1,23,309 5.58	0.30
Bandhan Corporate Bond Dir Invest Online	Moderate	Above Avg.	DT-CB	1,05,824 5.82	1,23,620 6.11	0.28
Baroda BNP Paribas Corporate Bond Dir Invest Online	Low to Moderate	High	DT-CB	1,06,050 6.05	1,23,762 6.36	0.18
DSP Corporate Bond Dir	Low to Moderate	Above Avg.	DT-CB	1,06,137 6.14	1,23,771 6.37	0.25
Franklin India Corporate Bond Dir	Low to Moderate	Above Avg.	DT-CB	1,06,259 6.26	1,23,693 6.24	0.21
ICICI Pru Corporate Bond Dir	Moderate	Above Avg.	DT-CB	1,05,850 5.85	1,23,321 5.60	0.32
Nippon India Corporate Bond Dir Invest Online	Moderate	Above Avg.	DT-CB	1,05,456 5.46	1,23,250 5.48	0.31
ABSL Credit Risk Dir Invest Online	Moderately High	Above Avg.	DT-CR	1,12,478 12.48	1,26,570 11.18	0.67
Axis Credit Risk Dir Invest Online	High	Above Avg.	DT-CR	1,08,403 8.40	1,25,001 8.48	0.68
Invesco India Credit Risk Dir Invest Online	Moderate	High	DT-CR	1,07,989 7.99	1,24,878 8.27	0.24
Nippon India Credit Risk Dir Invest Online	Moderately High	Avg.	DT-CR	1,07,887 7.89	1,24,651 7.88	0.51
Bandhan Banking and PSU Debt Dir Invest Online	Low to Moderate	Above Avg.	DT-BAPD	1,05,825 5.83	1,23,655 6.17	0.30
Franklin India Banking & PSU Debt Dir	Low to Moderate	High	DT-BAPD	1,06,424 6.42	1,23,709 6.26	0.19
ICICI Pru Banking and PSU Debt Dir	Moderate	Above Avg.	DT-BAPD	1,05,693 5.69	1,23,198 5.40	0.33
ITI Banking & PSU Debt Dir	Low to Moderate	Avg.	DT-BAPD	1,05,081 5.08	1,22,985 5.03	0.18
UTI Banking & PSU Debt Dir Invest Online	Low to Moderate	High	DT-BAPD	1,06,194 6.19	1,23,825 6.46	0.19
ABSL Floating Interest Rate Dir Invest Online	Low to Moderate	Below Avg.	DT-FIR	1,06,250 6.25	1,23,704 6.26	0.21
HDFC Floating Interest Rates Dir Invest Online	Moderate	Avg.	DT-FIR	1,06,123 6.12	1,23,525 5.95	0.23
ICICI Pru Floating Interest Rates Dir	Low to Moderate	Avg.	DT-FIR	1,06,697 6.70	1,23,809 6.44	0.25
Axis Gilt Dir Invest Online	Moderate	Above Avg.	DT-GL	1,04,382 4.38	1,22,738 4.61	0.37
Bandhan Gilt Dir Invest Online	Low to Moderate	High	DT-GL	1,07,657 7.66	1,25,078 8.61	0.45
Baroda BNP Paribas Gilt Dir Invest Online	Moderate	Avg.	DT-GL	1,03,185 3.18	1,22,173 3.66	0.13
Franklin India Gilt Dir	Low to Moderate	Avg.	DT-GL	1,05,566 5.57	1,23,345 5.64	0.54
ICICI Pru Gilt Dir	Moderate	High	DT-GL	1,04,332 4.33	1,22,495 4.20	0.49
Motilal Oswal 5 Year G-Sec FoF Dir	Moderate	High	DT-GL	1,04,482 4.48	1,22,212 3.72	0.13
SBI Gilt Dir Invest Online	Moderate	Avg.	DT-GL	1,04,128 4.13	1,22,680 4.52	0.40
UTI Gilt Dir	Moderate	Above Avg.	DT-GL	1,05,126 5.13	1,22,686 4.52	0.57
Bandhan Aggressive Hybrid Dir Invest Online	Very High	Above Avg.	HY-AH	1,05,270 5.27	1,23,877 6.55	0.47
Bandhan Aggressive Hybrid Passive FoF Dir Invest Online	Very High	Avg.	HY-AH	1,06,152 6.15	1,23,822 6.46	0.05
Bank of India Aggressive Hybrid Fund Dir Invest Online	Very High	High	HY-AH	1,12,697 12.70	1,31,086 19.09	0.58
Edelweiss Aggressive Hybrid Dir	Very High	High	HY-AH	1,00,835 0.84	1,20,926 1.55	0.40
ICICI Pru Aggressive Hybrid Dir	Very High	High	HY-AH	99,105 -0.90	1,18,521 -2.46	0.77
ICICI Pru Children's Dir	Very High	Above Avg.	HY-AH	96,524 -3.48	1,18,795 -2.01	1.19
ICICI Pru Retirement Hybrid Aggressive Dir	Very High	High	HY-AH	1,04,944 4.94	1,22,398 4.04	0.72
JM Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	98,595 -1.40	1,22,283 3.84	0.74
Kotak Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	1,01,946 1.95	1,22,115 3.55	0.44
Mahindra Manulife Aggressive Hybrid Dir	Very High	Above Avg.	HY-AH	95,819 -4.18	1,16,923 -5.10	0.51
Navi Aggressive Hybrid Dir	Very High	Avg.	HY-AH	1,06,910 6.91	1,26,791 11.56	0.49
Nippon India Aggressive Hybrid Dir Invest Online	Very High	Avg.	HY-AH	99,106 -0.89	1,19,290 -1.18	0.90
SBI Aggressive Hybrid Dir Invest Online	Very High	Avg.	HY-AH	1,01,896 1.90	1,20,495 0.83	0.55
UTI Aggressive Hybrid Dir Invest Online	Very High	Avg.	HY-AH	98,648 -1.35	1,17,976 -3.36	0.97
ABSL Conservative Hybrid Dir Invest Online	Moderately High	Above Avg.	HY-CH	1,04,251 4.25	1,22,327 3.92	0.82
Bank of India Conservative Hybrid Dir Invest Online	Moderate	Above Avg.	HY-CH	1,02,842 2.84	1,21,553 2.61	0.94
DSP Conservative Hybrid Dir	Moderately High	Avg.	HY-CH	1,03,275 3.28	1,21,758 2.95	0.51
ICICI Pru Conservative Hybrid Dir	High	Above Avg.	HY-CH	1,02,724 2.72	1,21,417 2.38	0.84
ICICI Pru Retirement Hybrid Conservative Dir	Moderately High	High	HY-CH	1,05,054 5.05	1,22,606 4.39	0.79
Nippon India Conservative Hybrid Dir Invest Online	High	Avg.	HY-CH	1,06,681 6.68	1,23,567 6.02	0.84
Parag Parikh Conservative Hybrid Dir Invest Online	Moderately High	High	HY-CH	1,04,736 4.74	1,22,460 4.14	0.24
SBI Children's Savings Plan Dir Invest Online	High	High	HY-CH	1,08,533 8.53	1,26,912 11.78	0.74
SBI Conservative Hybrid Dir Invest Online	Moderately High	Above Avg.	HY-CH	1,04,508 4.51	1,22,490 4.19	0.80
Bandhan Equity Savings Dir Invest Online	Low to Moderate	Below Avg.	HY-EQ S	1,03,790 3.79	1,22,090 3.51	0.15
DSP Equity Savings Dir	Moderate	Avg.	HY-EQ S	1,01,571 1.57	1,20,369 0.62	0.58
Edelweiss Equity Savings Dir	Moderate	Above Avg.	HY-EQ S	1,07,479 7.48	1,25,296 8.98	0.54
HSBC Equity Savings Dir	Moderately High	High	HY-EQ S	1,06,549 6.55	1,25,069 8.59	0.51
ICICI Pru Equity Savings Dir	Low to Moderate	Below Avg.	HY-EQ S	1,02,366 2.37	1,21,149 1.93	0.43
Kotak Equity Savings Dir	Moderately High	High	HY-EQ S	1,03,834 3.83	1,22,059 3.46	0.57
UTI Equity Savings Dir	Moderately High	Avg.	HY-EQ S	1,02,794 2.79	1,20,180 0.30	0.65
ABSL Arbitrage Dir Invest Online	Low	Avg.	HY-AR	1,06,715 6.72	1,23,819 6.45	0.27
Axis Arbitrage Dir Invest Online	Low	Avg.	HY-AR	1,06,685 6.68	1,23,799 6.42	0.27
Edelweiss Arbitrage Dir	Low	Avg.	HY-AR	1,06,663 6.66	1,23,789 6.40	0.33
Invesco India Arbitrage Dir Invest Online	Low	Above Avg.	HY-AR	1,06,835 6.84	1,23,907 6.60	0.34
ITI Arbitrage Dir	Low	High	HY-AR	1,06,427 6.43	1,23,500 5.91	0.22
Kotak Arbitrage Dir	Low	Avg.	HY-AR	1,06,702 6.70	1,23,814 6.44	0.33
Motilal Oswal Arbitrage Dir	Low	High	HY-AR	1,06,941 6.94	1,23,902 6.59	0.10
Sundaram Arbitrage Dir	Low	High	HY-AR	1,06,725 6.73	1,23,810 6.43	0.19
Tata Arbitrage Dir Invest Online	Low	Above Avg.	HY-AR	1,06,785 6.79	1,23,889 6.57	0.26
WhiteOak Capital Arbitrage Dir Invest Online	Low	High	HY-AR	1,07,143 7.14	1,24,137 6.99	0.40
ABSL Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,04,901 4.90	1,23,228 5.44	0.59
Axis Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,01,147 1.15	1,19,771 -0.38	0.72
DSP Dynamic Asset Allocation Dir	High	Avg.	HY-DAA	1,03,311 3.31	1,21,336 2.24	0.59
Franklin India Balanced Advantage Dir	Very High	Avg.	HY-DAA	99,863 -0.14	1,19,986 -0.02	0.47
Franklin India Dynamic Asset Allocation Active FoF Dir	High	Above Avg.	HY-DAA	99,660 -0.34	1,19,469 -0.89	0.82
HDFC Balanced Advantage Dir Invest Online	Very High	High	HY-DAA	98,673 -1.33	1,18,217 -2.96	0.64
ICICI Pru Balanced Advantage Dir	Very High	Above Avg.	HY-DAA	1,02,724 2.72	1,21,232 2.07	0.71
Mirae Asset Balanced Advantage Dir Invest Online	Very High	Avg.	HY-DAA	1,03,366 3.37	1,21,437 2.41	0.62
Nippon India Balanced Advantage Dir Invest Online	Very High	Avg.	HY-DAA	1,01,767 1.77	1,21,337 2.24	0.55
Quant Dynamic Asset Allocation Dir Invest Online	Very High	High	HY-DAA	97,847 -2.15	1,19,323 -1.13	0.74
SBI Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,01,563 1.56	1,18,751 -2.08	0.61
WhiteOak Capital Balanced Advantage Dir Invest Online	Very High	Above Avg.	HY-DAA	1,02,613 2.61	1,22,742 4.62	0.53
Edelweiss Multi Asset Allocation Dir	High	Low	HY-MAA	1,06,732 6.73	1,24,171 7.05	0.42
ICICI Pru Multi Asset Allocation Dir	Very High	Above Avg.	HY-MAA	1,02,717 2.72	1,19,364 -1.06	0.55
Nippon India Multi Asset Allocation Dir Invest Online	Very High	High	HY-MAA	1,10,696 10.70	1,24,374 7.40	0.30
Nippon India Multi-Asset Omni FoF Dir Invest Online	Very High	Above Avg.	HY-MAA	1,07,318 7.32	1,23,335 5.62	0.08
Quant Multi Asset Allocation Dir Invest Online	High	High	HY-MAA	1,14,802 14.80	1,24,929 8.35	0.56
SBI Multi Asset Allocation Dir Invest Online	Very High	Avg.	HY-MAA	1,09,721 9.72	1,22,396 4.03	0.49
WhiteOak Capital Multi Asset Allocation Dir Invest Online	High	Avg.	HY-MAA	1,11,243 11.24	1,25,726 9.73	0.39
Axis Gold Dir Invest Online	High	Below Avg.	Gold-Funds	1,34,977 34.98	1,29,424 16.16	0.25
Quantum Gold ETF FoF Dir	High	Above Avg.	Gold-Funds	1,35,672 35.67	1,29,352 16.03	0.03
SBI Gold Dir Invest Online	Very High	Avg.	Gold-Funds	1,35,491 35.49	1,29,125 15.63	0.20
UTI Gold ETF FoF Dir	High	Above Avg.	Gold-Funds	1,35,396 35.40	1,29,357 16.04	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.