Category: Mutual Funds

Top 10 Best Flexi Cap Mutual Funds in India

A flexi cap fund is a special type of equity fund that gives the fund manager total freedom. The manager can invest your money across large, mid, and small companies based on the market conditions. This means you do not have to stress about picking the right company size yourself.

If you are searching for the best flexi cap fund for your portfolio, you are in the right place. We will help you understand how these funds work in simple words. We will also review the best flexi cap mutual funds available in India right now. These flexi cap funds are very popular because they adapt quickly to changes in the economy.

By the end of this blog, you will know everything about investing in a flexi cap mutual fund. We will look at past returns, taxes, and how to start your investment journey. Let us dive deep into the world of flexible investing.

List of Top 10 Best Equity Mutual Funds in 2026

When we talk about mutual funds, looking at past performance is very important. It helps us understand how the fund manager handled market ups and downs. We have gathered the data for the top 10 flexi cap funds for the year 2026 and is mentioned below

Fund Name	Minimum Investment (INR)	Fund Size (AUM)	NAV (₹)	Expense Ratio	Exit Load
Parag Parikh Flexi Cap Fund	1,000	₹1,28,966 Cr	91.98	0.62%	2.0%
HDFC Flexi Cap Fund	100	₹91,335 Cr	2191.73	0.68%	1.0%
Kotak Flexicap Fund	100	₹50,146 Cr	96.79	0.59%	1.0%
Aditya Birla Sun Life Flexi Cap	100	₹23,018 Cr	2069.40	0.87%	1.0%
SBI Flexicap Fund	1,000	₹20,626 Cr	120.63	0.86%	0.1%
UTI Flexi Cap Fund	5,000	₹20,438 Cr	321.17	1.05%	1.0%
ICICI Prudential Flexicap Fund	5,000	₹18,458 Cr	20.30	0.80%	1.0%
Franklin India Flexi Cap Fund	5,000	₹17,536 Cr	1779.60	0.91%	1.0%
Canara Robeco Flexi Cap Fund	5,000	₹11,922 Cr	377.51	0.57%	1.0%
Bank of India Flexi Cap Fund	5,000	₹2,033 Cr	39.51	0.58%	1.0%

Note: Data is sourced from value research of direct plans up to 18 April 2026.

Overiew of Best Equity Mutual Funds in India

1. Parag Parikh Flexi Cap Fund

This is a very popular fund among Indian investors. It manages a massive fund size of over 1.28 lakh crore rupees. The fund follows a value investing style to buy good stocks at cheap prices.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Parag Parikh Flexi Cap Fund	6.98%	18.97%	20.26%

2. HDFC Flexi Cap Fund

This fund is one of the oldest and most trusted funds in India. The fund mainly invests in strong banks like ICICI Bank and HDFC Bank.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
HDFC Flexi Cap Fund	6.37%	21.48%	21.19%

3. Kotak Flexicap Fund

Kotak Flexicap Fund is a great choice for safe growth. The fund manager prefers to invest largely in big companies to keep your money safe.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Kotak Flexicap Fund	9.98%	17.46%	14.80%

4. Aditya Birla Sun Life Flexi Cap Fund

This fund spreads your money across 78 different strong companies. It tries to balance both growth and value in its stock choices.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Aditya Birla Sun Life Flexi Cap	11.01%	19.51%	15.34%

5. SBI Flexicap Fund

If you do not like big market jumps, this fund is for you. It tries to offer steady returns with lower risks. It has given a 10 year return of 13.42 percent.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
SBI Flexicap Fund	6.20%	13.11%	12.33%

6. UTI Flexi Cap Fund

This fund currently manages 20,438 crore rupees. It focuses on buying quality businesses that have a good chance to grow.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
UTI Flexi Cap Fund	-2.13%	10.70%	7.83%

7. ICICI Prudential Flexicap Fund

This is a relatively new fund that started in July 2021. Because it is new, it does not have old stocks slowing it down. It has performed very well with a 3 year return of 20.14.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
ICICI Prudential Flexicap Fund	11.66%	20.14%	N/A

8. Franklin India Flexi Cap Fund

This fund believes in buying stocks and holding them for a long time. It does not buy and sell shares too often.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Franklin India Flexi Cap Fund	3.11%	18.45%	16.80%

9. Canara Robeco Flexi Cap Fund

This fund is a hidden gem with a very low expense ratio of 0.57 percent. It manages 11,922 crore rupees for its investors. The fund manager actively changes the stock choices to find the best profits.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Canara Robeco Flexi Cap Fund	7.20%	16.05%	14.24%

10. Bank of India Flexi Cap Fund

Do not let its small size fool you. This fund manages only 2,033 crore rupees but gives amazing returns. Its small size allows the manager to invest easily in fast growing small companies. It has the highest 5 year return on our list at 20.82 percent.

Fund Name	1Y Return (CAGR)	3Y Return (CAGR)	5Y Return (CAGR)
Bank of India Flexi Cap Fund	15.29%	24.48%	20.82%

Read Also: Best Long-Term Mutual Funds

Advantage and Disadvantage of Flexi Cap Mutual Fund

Every investment has its own good and bad points. It is important to know both sides before you invest your money. Let us look at the benefits and risks of flexi cap funds.

Advantages of Flexi Cap Mutual Fund

Total Flexibility: The fund manager can quickly move your money to the safest or fastest growing companies. This keeps your money safe during bad market days.
Great Diversification: Your money is spread across many different sectors like banking, IT, and healthcare. If one sector falls, the others can protect your money.
Professional Help: You get highly experienced experts managing your money daily. You do not need any stock market knowledge yourself.

Disadvantages of Flexi Cap Mutual Fund

Manager Dependency: Since there are no strict rules, everything depends on the fund manager. If the manager makes a bad guess, your returns will drop.
Lower Bull Market Returns: When the market is booming, pure small cap funds will give huge returns. Flexi cap funds might give lower returns because they also hold safe large companies.
Not for Short Term: If you need your money in 1 or 2 years, this is a bad choice. You might lose money if the market is down when you need to withdraw.

Factors to Consider While Choosing a Flexi Cap Mutual Fund

Here are some important factors we suggest you look at before investing:

Fund Size (AUM): Look at the total money the fund manages. A very big fund like Parag Parikh is safe but might grow slowly. A small fund like Bank of India can grow faster but might be slightly riskier.
Expense Ratio: This is the fee the company charges to manage your money. You should always look for funds with a low expense ratio to save money.
Fund Manager Track Record: The fund manager makes all the buying decisions. Check if the manager has a history of giving good returns over the long term.
Exit Load: This is a penalty fee charged if you take your money out too early. Most funds charge a 1 percent fee if you leave before one year.

Read Also: Best SIP Mutual Funds in India

Who Should Invest in Flexi Cap Mutual Fund?

Flexi cap funds are a great choice for many types of investors. First, they are perfect for people who have a moderate to high risk appetite. Since these funds invest only in the stock market, the value will go up and down daily. You must be comfortable seeing these changes.

Finally, these funds are best for busy people. If you do not have the time to track different large cap or small cap funds, a flexi cap fund solves your problem. You can just invest your money and let the professional manager do the hard work for you.

How to Invest in Flexi Cap Mutual Fund

Investing in mutual funds is very simple and completely online nowadays.

Here are the simple steps to start your investment:

Step 1: Visit the official website like Pocketful and click on open an account.
Step 2: Complete your Know Your Customer (KYC) process online. You will need your PAN card and Aadhaar card details.
Step 3: Search for the best flexi cap fund that suits your financial goals. You can compare different funds on the platform.
Step 4: Choose your investment type. You can start a Systematic Investment Plan (SIP) with a small amount every month, or you can invest a lump sum amount at once.

By following these simple steps you can start building your wealth today. Regular investing is the secret key to financial freedom.

Conclusion

Building wealth for your future does not have to be a stressful job. Flexi cap funds offer a beautiful balance of safety and high growth. By allowing experts to move your money across different company sizes, you get peace of mind and great returns.

Whether you choose a large fund like Parag Parikh or a fast growing one like Bank of India, the key is to stay invested. Start your Mutual Fund journey with Pocketful – no brokerage, diverse fund options, and a seamless investing experience.

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8	Mutual Fund Fees & Charges in India 2024
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10	History of Mutual Funds in India

Frequently Asked Questions (FAQs)

Meaning: What exactly is a flexi cap mutual fund?
The fund manager has the flexibility to invest your money in large, mid, or small companies without any restrictions.
Benefits: Why should you invest in flexi cap funds?
These funds give you the benefit of diversification. They lower your risk during bad market conditions.
How do you use flexi cap funds in your portfolio?
You should use a flexi cap fund as your main, core investment. Instead of buying four different mutual funds, you can just put most of your monthly savings into one good flexi cap fund for the long term.
Is there a lock in period for flexi cap funds?
No, there is no mandatory lock in period for standard flexi cap funds. You can take your money out anytime.
What is the minimum amount required to start investing?
You do not need a lot of money to start. One can start a monthly SIP with just 100 rupees.

April 29, 2026

Top 10 Best Equity Mutual Funds in India

When you invest in mutual funds, professional experts manage your hard-earned money. They pool money from many investors and buy shares of different companies. Finding the Best Equity Mutual Funds can seem like a tough task with so many options available today. But do not worry, because we have simplified the process for you.

In this blog, we will guide you through everything you need to know about equity mutual funds. We have carefully selected the top equity mutual funds based on their past performance, fund size, and risk levels. By the end of this read, you will easily know which are the best equity mutual funds to invest in for your future goals. Let us dive right in and explore how you can make your money work harder for you.

List of Top 10 Best Equity Mutual Funds

To understand this , we have put together a list of the top 10 equity mutual funds. We looked at their returns over 1 year 3 years 5 years and 10 years to see their consistency. It also includes minimum investment required, their Fund Size (Assets Under Management or AUM), their current Net Asset Value (NAV), and the exit load.

Fund Name	Minimum Investment (INR)	Fund Size (AUM)	NAV (INR)	Exit Load
Parag Parikh Flexi Cap Fund	1,000	₹1,28,966 Cr	91.57	2.00%
Quant Small Cap Fund	5,000	₹25,821 Cr	268.39	1.00%
Nippon India Small Cap Fund	5,000	₹61,809 Cr	186.33	1.00%
SBI PSU Fund	5,000	₹5,891 Cr	38.73	0.50%
UTI Nifty 50 Index Fund	1,000	₹24,433 Cr	169.13	Nil
Mirae Asset Large Cap Fund	5,000	₹35,343 Cr	124.18	1.00%
Canara Robeco Bluechip Fund	100	₹15,235 Cr	70.69	1.00%
Kotak Emerging Equity Fund	100	₹55,675 Cr	158.95	1.00%
HDFC Mid Cap Fund	100	₹85,358 Cr	218.21	1.00%
ICICI prudential Bluechip	100	₹69,948 Cr	119.47	1.00%

(Note: The returns data represents the trailing historical performance as on 17 April 2026. Data are sourced from Value Research for the direct plans)

Overview of Best Equity Mutual Funds in India

1. Parag Parikh Flexi Cap Fund

This fund is extremely popular because of its unique investing style. The fund managers invest your money in Indian companies as well as foreign giants like Microsoft and Amazon.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Parag Parikh Flexi Cap Fund	7.22%	19.00%	17.51%

2. Quant Small Cap Fund

If you have a high appetite for risk, this small cap fund might catch your eye. The fund manager actively buys and sells stocks based on changing market trends.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Quant Small Cap Fund	6.00%	20.85%	23.86%

3. Nippon India Small Cap Fund

This is one of the largest small cap funds in India today. It has a brilliant 10-year track record of multiplying investor wealth.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Nippon India Small Cap Fund	8.65%	21.71%	23.61%

4. SBI PSU Fund

This is a sectoral fund that invests only in Public Sector Undertakings. These are companies where the government holds a majority share.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
SBI PSU Fund	19.87%	34.81%	29.21%

5. UTI Nifty 50 Index Fund

This fund simply copies the Nifty 50 index, investing in the top 50 companies of India. Because it is passively managed, the fees you pay are very low, and there is zero exit load.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
UTI Nifty 50 Index Fund	4.2%	11.72%	11.63%

6. Mirae Asset Large Cap Fund

This fund focuses on the biggest and most stable companies in the stock market. It is a great choice for conservative investors looking for steady growth.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Mirae Asset Large Cap Fund	5.51%	12.79%	12.17%

7. Canara Robeco Bluechip Equity Fund

This fund strictly invests in the top 100 bluechip companies. It aims to provide capital appreciation with relatively lower risk compared to small cap funds. Large cap funds.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Canara Robeco Bluechip Fund	3.96%	14.78%	13.12%

8. Kotak Emerging Equity Fund

The portfolio is nicely diversified across sectors like financial services and healthcare. It strikes a great balance between the safety of large caps and the high growth of small caps.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
Kotak Emerging Equity Fund	16.79%	22.92%	20.20%

9. HDFC Mid Cap Opportunities Fund

This scheme holds the title of being the largest mid cap fund in India. It is widely trusted by retail investors across the country.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
HDFC Mid Cap Fund	14.74%	25.24%	22.73%

10. ICICI Prudential Bluechip Fund

This is another highly trusted large cap fund in the mutual fund industry. It protects your capital much better than smaller funds during severe market corrections.

Fund Name	1 Yr Return (CAGR)	3 Yr Return (CAGR)	5 Yr Return (CAGR)
ICICI prudential Bluechip	6.03%	16.83%	15.94%

Read Also: Best Long-Term Mutual Funds

Advantage and Disadvantage of Equity Mutual Fund

We have listed them below to help you set realistic expectations.

Advantages

Professional Management: You do not need to be a stock market expert to invest. Dedicated professionals do all the complex research and manage your money for you.
Diversification: Your money is spread across many different companies and sectors. If one company does poorly, the profits from other companies can cover the loss.
Power of Compounding: By staying invested for a long time, you earn returns on top of your previous returns. This helps your money grow at a much faster rate.

Disadvantages

Market Risk: There are no guaranteed returns. The value of your investment is directly tied to the performance of the stock market.
Management Fees: You have to pay an expense ratio to the fund house. Over many years, this fee can reduce your overall profits.
Tax Implications: When you sell your mutual fund units for a profit, you have to pay capital gains tax. This can slightly reduce your final take-home amount.

Factors to Consider While Choosing an Equity Mutual Fund

Following are some factors which you need to check.

Fund Manager Experience: Investors should check if the manager had a good past track record of handling money during tough market conditions.
Risk Profile: Understand the category of the fund. Large cap funds have lower risk, while small cap funds have very high risk.
Exit Load: This is a penalty fee charged if you withdraw your money too early. Most equity funds charge a 1% fee if you sell within one year.

Read Also: Best SIP Mutual Funds in India

Who Should Invest in Equity Mutual Funds

Equity mutual funds are not meant for everyone. You need to understand your own financial situation before putting your money into the stock market. You should invest in equity mutual funds if you have a long-term goal, these funds are suited for people who want to beat inflation.

Finally, you must have a decent appetite for risk. When the market falls and If you easily panic and sell your investments, you might end up making a loss. If you can stay calm, equity funds can reward you handsomely.

How to Invest in Equity Mutual Fund

Investing in mutual funds has become incredibly simple today.

Choose a Reliable Platform
Start by selecting a trusted platform like Pocketful for a smooth investing experience.
Complete Your KYC
Submit your PAN card, Aadhaar card, and a photograph online for quick verification.
Create Your Account
Sign up and activate your investment account within minutes.
Explore Equity Funds
Browse different categories of equity mutual funds based on your goals and risk appetite.
Start Investing
Invest via lumpsum or SIP (Systematic Investment Plan) as per your convenience.
Track & Manage
Monitor your investments easily through the dashboard and stay updated with performance.

SIP you invest an amount every month, the bank automatically deducts the money from your account.

Conclusion

Wealth isn’t built overnight. It takes a solid plan and a bit of grit. Equity mutual funds offer a fantastic entry point into the indian market. Whether you prefer the safety of large cap funds or the risky growth of small cap funds there is an option for everyone.

To enter into indian market Pocketful is a trusted and user friendly platform that makes investing very easy. You can enjoy zero account opening charges and zero annual maintenance.

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Frequently Asked Questions (FAQs)

What is the meaning of an Equity Mutual Fund?
Equity mutual fund collects money from many investors to buy shares of companies listed on the stock market and It is managed by a professional fund manager.
What are the key advantages of investing in equity mutual funds?
The primary benefits include professional money management, diversification and Most importantly they offer the potential to generate high returns over the long term.
How to use equity mutual funds for my financial goals?
One can use equity mutual funds for long-term goals that are at least 5 to 7 years away. You can start a Systematic Investment Plan (SIP) or lump sum. This helps to save money for your retirement or children’s education.
Do I need a large amount of money to start investing?
No, In a mutual fund you can start investing your money in SIP with as little as ₹100 or ₹500 per month.
Are equity mutual funds safe for beginners?
While all stock market investments carry some risk, equity mutual funds are generally safer than buying individual stocks directly.

April 22, 2026

What is Association of Mutual Funds in India (AMFI)?

In India, mutual funds are no longer limited solely to large investors by February 2026, the industry’s AUM had surpassed ₹82 lakh crore, reflecting the growing confidence of the public. In this context, it becomes essential to understand what AMFI is and what role it plays within the mutual fund industry, as this very body helps ensure the industry operates effectively.

What is AMFI Full Form?

The full form of AMFI is the “Association of Mutual Funds in India.” Within the mutual fund industry, AMFI is an organization that represents all Asset Management Companies (AMCs) and assists in maintaining industry standards.

What is AMFI in Mutual Fund Industry?

In the mutual fund industry, AMFI is an association where almost all mutual fund companies are affiliated. Its job is simple: to ensure that the industry’s operations are fair and everyone follows a set standard. AMFI establishes guidelines and a Code of Conduct, which companies and distributors must adhere to. This reduces mis-selling and maintains investor confidence. An important point: AMFI itself is not a regulatory authority. The actual regulation is handled by SEBI. AMFI simply ensures that the industry operates properly.

Mutual Fund Industry in India is Regulated By Whom?

SEBI is responsible for regulating the mutual fund industry in India. This authority formulates the rules and ensures that all fund houses adhere to them correctly.

SEBI vs AMFI

Feature	SEBI	AMFI
Role	Regulator	Industry Body
Power	Legal authority	Advisory
Work	Formulating and Enforcing Rules	Standards and Awareness

History & Formation of AMFI

AMFI was established in 1995. At that time, the mutual fund industry in India was growing gradually, but it lacked a clear structure. Various companies were operating according to their own norms, making it difficult to maintain uniform standards. Consequently, a need was felt for a body that could bring all mutual fund companies together and establish a common framework for operations and this is precisely how the concept of AMFI emerged.

Why AMFI Was Needed

To introduce uniform standards across the industry
To enhance transparency for investors
To improve coordination among companies
To curb malpractices (such as mis-selling)

Objectives of AMFI

Investor Protection : AMFI’s primary focus is to ensure that investors are treated fairly and equitably. To this end, it emphasizes transparency and the provision of accurate information within the industry.
Mutual Fund Awareness : AMFI continuously conducts awareness campaigns to educate the public about mutual funds, thereby enabling new investors to make informed decisions.
Ethical Practices (Code of Conduct) : AMFI establishes a Code of Conduct that companies and distributors are required to adhere to. The objective is to prevent mis-selling and to ensure the provision of sound advice.
Industry Standardization : AMFI sets guidelines to ensure uniform operational practices across the entire industry, thereby maintaining an organized and consistent ecosystem.
Data Transparency : AMFI regularly releases industry data (such as AUM), providing investors with a clear picture of the sector and fostering greater trust.

Major Functions of AMFI

ARN Registration : AMFI issues an ARN (AMFI Registration Number) to mutual fund distributors. This ensures that only registered and verified individuals sell or recommend funds to investors.
Code of Conduct : AMFI establishes a clear Code of Conduct that companies and distributors are required to follow. Its primary objective is to ensure fair dealing with investors and to prevent mis-selling.
Investor Awareness : AMFI educates the public about mutual funds through awareness campaigns. This provides new investors with accurate information, enabling them to make better decisions.
Industry Data : AMFI regularly publishes industry data, such as AUM (Assets Under Management) and fund trends. This assists investors and market participants in understanding the current state of the industry.
Certification & Support : AMFI helps maintain a structured process for the certification and registration of distributors. This ensures the maintenance of quality and professionalism within the industry.

AMFI Certification & ARN Explained

What is ARN?

ARN (AMFI Registration Number) is a unique registration number assigned to mutual fund distributors. Without it, no individual can officially sell or recommend mutual funds.

ARN Registration Process (Step-by-Step)

Step	Process
1	First, you need to pass the NISM-Series-V-A (Mutual Fund Distributors) exam.
2	After clearing the exam, you need to apply for registration with AMFI.
3	Required documents (ID proof, photograph, etc.) must be submitted.
4	Upon completion of the verification process, an ARN number is allotted.
5	Subsequently, the distributor can legally sell mutual funds.

Common Myths About AMFI

Myth	Reality
AMFI regulates mutual funds.	Mutual funds are regulated by SEBI, not AMFI.
AMFI is a government body.	AMFI is a non-profit industry association, not a government body.
AMFI guarantees returns.	AMFI has nothing to do with returns; returns depend on the market.
AMFI formulates and enforces rules.	SEBI frames the rules, while AMFI merely maintains guidelines and standards.
AMFI approves funds.	SEBI handles fund approval and regulation.
AMFI manages investors’ money.	AMFI does not handle funds; this task is performed by fund houses (AMCs).
Investing in AMFI is essential.	Investors do not have any direct role in AMFI.
AMFI resolves complaints directly.	SEBI is the primary platform for complaints, while AMFI plays a supporting role.

AMFI’s Role in Financial Awareness

From a practical perspective, AMFI’s greatest impact is not limited solely to the industry; it also lies in fostering financial awareness. Over the past few years particularly in Tier-2 and Tier-3 cities the reach of mutual funds has expanded significantly, a development to which AMFI’s campaigns have contributed immensely. AMFI’s initiatives such as awareness drives and simplified messaging have helped new investors understand how mutual funds function and why long-term investing is essential.

Real Impact

The number of SIP investors from smaller cities is consistently on the rise.
Reaching first-time investors has become easier through digital campaigns.
A gradual improvement in financial literacy has been observed.

Conclusion

AMFI plays a crucial role in providing a proper structure and discipline to the mutual fund industry, while the responsibility for regulation lies with SEBI. If you invest in mutual funds, it is essential to understand AMFI’s basic role so that you can make sound and informed decisions. For market insights & latest news, download Pocketful – offering zero brokerage on delivery, zero AMC, and advanced tools for F&O trading.

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Frequently Asked Questions (FAQs)

What is the full form of AMFI?
The full form of AMFI is the Association of Mutual Funds in India.
What is AMFI in the context of mutual funds?
AMFI is an industry body that maintains standards and guidelines for mutual fund companies.
Who regulates the mutual fund industry in India?
In India, mutual funds are regulated by SEBI.
Is AMFI a government organization?
No, AMFI is a non-profit association; it is not a government body.
Does AMFI guarantee returns?
No, returns depend on market conditions; AMFI does not provide any guarantees.

April 9, 2026

Best Passive Mutual Funds in India 2026

Most of the funds you invest in require active monitoring. Missing any crucial trend or news can impact your returns greatly. But the problem is that many investors look for options that require low monitoring; they aim for safer choices with stable and good returns. This is where passive funds play an important role.

This makes them a good choice for long-term savings and investing. But before you plan to invest, the question is which are the best passive funds that you should also look for. Also, you need to know what is passive investing along with the difference between active and passive funds. So, let us explore all the details you need here in this guide.

What Are Passive Funds?

Passive funds are mutual funds designed to replicate the performance of a specific market index. They are not here with the aim of beating the index performance. These funds copy the benchmark that they follow. It can be the Nifty 50, some sectoral index, or any other. The ratio of the assets will be similar to the index, which helps with tracking.

Since these funds follow the index, there is no need for highly active management. This also reduces the cost of the fund, which directly helps you with better returns. For a balanced portfolio that helps with wealth, portfolio, and outcomes, these are a good addition.

Key Features of Passive Funds

Track a specific market index such as Nifty 50, Sensex, or sectoral indices.
Lower expense ratios due to minimal active management.
Transparent portfolio as holdings replicate the index composition.
Diversification across multiple companies within the index.
Lower portfolio turnover compared to actively managed funds.

Pros of Passive Funds

Lower management costs compared to actively managed funds.
Reduced dependence on fund manager decisions.
Diversified exposure to multiple companies through the index.
Straightforward investment structure that is easy to understand.
Suitable for long-term investors seeking market-linked growth.

Cons of Passive Funds

Cannot outperform the index they track.
Returns depend entirely on overall market performance.
Limited flexibility during market downturns.
Tracking error may cause slight variation from index returns.
No opportunity to benefit from active stock selection.

But before we explore the top choices for you, let us explore the active and passive fund differences.

Difference Between Active and Passive Funds

When you talk about the active and passive funds, you would see that the basic aspects are the same. The difference mainly lies in how these are managed. So, here are the key points that you must know:

Basis	Active Funds	Passive Funds
Investment Approach	Fund managers actively select and manage stocks to outperform the market.	The fund replicates a market index and follows its composition.
Objective	Aim to generate higher returns than the benchmark index.	Aim to match the performance of the index being tracked.
Management Style	Requires continuous research, analysis, and portfolio adjustments.	Minimal intervention as the portfolio mirrors the index.
Expense Ratio	Usually higher due to active management and research costs.	Generally lower because there is limited active management.
Risk Level	Performance depends on fund manager decisions and strategy.	Performance closely follows the overall market movement.
Return Potential	Possibility to outperform the market if the manager performs well.	Returns are usually similar to the index performance.

Top Passive Funds to Invest in 2026

As a passive investor, you will come across hundreds of options that are worthy of investing in. But only a few of these actually stand out. These are as follows:

Fund Name	AUM (₹ Cr)	NAV (₹)	Expense Ratio (%)	Sharpe Ratio
UTI Nifty 50 Index Fund	26,681.34	161.87	0.2	0.04
HDFC Nifty 50 Index Fund	22324.27	225.11	0.2	0.25
ICICI Pru Nifty 50 Index Fund	15,390.61	243.36	0.19	0.03
SBI Nifty Index Fund	11879.12	215.16	0.19	0.02
HDFC BSE Sensex Index Fund	8869.18	709.22	0.2	0.04
UTI Nifty200 Momentum 30 Index Fund	8711.89	19.65	0.43	0.18
ICICI Pru Nifty Next 50 Index Fund	8396.38	60.03	0.31	0.4
UTI Nifty Next 50 Index Fund	6245.96	23.93	0.35	0.41
Navi Nifty 50 Index Fund	3872.53	15.18	0.06	0.04
Nippon India Index Fund Nifty 50 Plan	3160.460	42.450	0.07	0.26

(Data as of 15 Mar 2026)

Overview of Best Passive Mutual Funds

1. UTI Nifty 50 Index Fund

This fund tracks the Nifty 50 index. It does so by investing in the same companies with similar weightage. The structure allows investors to invest ina fund that follows the top index. This helps with better returns and management as well.

It is often used as a core holding in long-term portfolios. Since the strategy simply mirrors the index, costs remain relatively low while investors gain diversified exposure to leading large-cap businesses.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.32	11.55	10.1

(Data as of 15 Mar 2026)

2. HDFC Nifty 50 Index Fund

This fund aims to replicate the Nifty 50. The fund follows this by holding all its constituent stocks in proportions similar to the index. The objective is to deliver returns that remain closely aligned with the benchmark.

It offers a simple way to access India’s large-cap equity market. The rule-based approach also makes it suitable for investors who prefer a stable and low-maintenance investment strategy.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.27	11.51	10

(Data as of 15 Mar 2026)

3. ICICI Pru Nifty 50 Index Fund

This fund follows a passive strategy. It is designed to closely track the Nifty 50 index. By holding the same basket of companies it attempts to match the index performance.

The approach provides broad exposure to India’s large-cap segment. Many investors use it as a foundational component in their equity portfolios. This aims to capture overall market growth over time.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.27	11.51	13.99

(Data as of 15 Mar 2026)

4. SBI Nifty Index Fund

This fund seeks to replicate the performance of the Nifty 50. This fund aims at keeping management costs relatively low. The portfolio includes the same companies that form part of the index.

It is commonly selected by investors who want straightforward exposure to India’s top companies. Many use it through systematic investment plans or long-term allocations to participate in market growth.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.24	11.52	10

(Data as of 15 Mar 2026)

5. HDFC BSE Sensex Index Fund

This fund tracks the S&P BSE Sensex. This means it consists of 30 well-established companies across key sectors of the Indian economy. These businesses are widely regarded as leading blue-chip companies.

The structure provides focused exposure to large-cap stocks. This makes it a stable and even more efficient fund for your investment.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
1.9	9.63	9

(Data as of 15 Mar 2026)

6. UTI Nifty200 Momentum 30 Index Fund

This fund follows the Nifty200 Momentum 30 index. It selects stocks from the Nifty 200 universe based on strong recent price performance.

The strategy focuses on companies showing momentum in their price trends. This approach offers a good potential but it can also involve greater volatility compared to traditional index funds.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
6.65	16.54	14.6

(Data as of 15 Mar 2026)

7. ICICI Pru Nifty Next 50 Index Fund

This fund replicates the Nifty Next 50 index. It includes companies ranked just below the Nifty 50 in terms of market capitalisation.

These businesses are often viewed as potential future large caps. As a result, the fund may appeal to investors seeking higher growth opportunities, though it may involve relatively higher risk.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
10.2	20.15	14.9

(Data as of 15 Mar 2026)

8. UTI Nifty Next 50 Index Fund

This fund invests in the companies that form the Nifty Next 50 index. It focuses on keeping the same composition and weightage as the benchmark.

It is often used alongside a Nifty 50 allocation. This is to broaden market exposure. Since many of these companies are still expanding, the portfolio may experience stronger growth but also higher market fluctuations.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
10.31	20.31	13.57

(Data as of 15 Mar 2026)

9. Navi Nifty 50 Index Fund

This fund aims to closely track the Nifty 50. It also focuses on maintaining a very low expense ratio. The portfolio mirrors the benchmark index quite close.

It is known for its cost efficiency. This appeals to investors who prioritize low fees and long-term index investing. It provides diversified exposure to India’s major large-cap companies.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.39	11.6	9.4

(Data as of 15 Mar 2026)

10. Nippon India Index Fund Nifty 50 Plan

This fund follows the Nifty 50 index. It manages the same allocation and weightage as well which is the best aspect.

The strategy offers exposure to a diversified basket of leading Indian companies. It is commonly used by investors seeking market-linked returns through a disciplined passive investment approach.

1 Year Return (%)	3 Year Return (%)	5 Year Return (%)
4.39	11.57	10

(Data as of 15 Mar 2026)

How to Select the Right Passive Fund

Choosing a passive fund may look straightforward. But there are still some points that you should consider:

Check the expense ratio. Since passive funds aim to match the index, lower costs help you keep a larger share of the returns.
Look at the tracking error. Funds with lower tracking error usually follow the benchmark index more closely.
Understand the index being tracked. Some funds track the Nifty 50 or Sensex, while others follow indices like Nifty Next 50, which may carry different risk levels.
Review the fund’s assets under management (AUM). Funds with larger AUM often have better liquidity and operational efficiency.
Decide between an index fund and an ETF. Index funds allow SIP investments, while ETFs trade on the stock exchange like regular shares.
Check the exit load and other conditions. Some funds may charge a fee if you redeem within a certain period.

Read Also: Best Liquid Mutual Funds in India

Conclusion

Passive funds have become an important part of modern investment portfolios. These funds provide stability and a base for your portfolio. But to ensure this, you need to make a choice that is correct. This is where you need the right platform with you. Pocketful allows you to explore the options well and make the investment calls to stay in sync with your needs.

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Frequently Asked Questions (FAQs)

What is passive investing in mutual funds?
Passive investing is a strategy where a mutual fund tracks a specific market index. The fund aims to replicate the performance and overpass it. This makes them safer.
Are passive funds better than active funds?
Passive funds and active funds serve different purposes. Passive funds offer lower costs and market-matching returns. So, if you are an investor looking for a fund with stability, passive funds are better.
Who should invest in passive funds?
Passive funds are suitable for long-term investors who prefer a simple investment strategy, lower expense ratios, and returns that closely follow overall market performance.
How are passive funds different from index funds?
Passive funds are investment funds that aim to replicate the performance of a market index. Index funds are a type of passive funds that track indices. Overall, passive funds are safer.
Are passive funds safe for beginners?
Yes. Passive funds are often considered suitable for beginners. They do not need a regular following which makes these are great choice.

March 24, 2026

Overnight Funds vs Liquid Funds: Which Is Better?

In case you have some extra money and want to invest for the short term with an objective to maintain liquidity and get some return. There are various options available in the debt category of mutual funds. Among them, the most preferred investment options to park idle money are overnight and liquid funds.

In today’s blog post, we will give you an overview of overnight funds and liquid funds, along with their key differences.

What are Overnight Funds?

Overnight funds are a category of debt mutual funds that primarily invest money in fixed-income instruments with a maturity of just one day. As investments are made in very short-term debt instruments, the investor considers them the safest option to park their money.

Features of Overnight Funds

The key features of overnight funds are as follows:

One-Day Maturity: The overnight fund invests its money in securities that mature within one day.
Low Return: The returns are low because the maturity of the instrument is extremely short i.e. 1 day only and the amount gets reinvested daily.

Low Interest Rate Risk: The interest rate risk in the overnight fund is very low, as the funds are least affected by changes in interest rates.
Very Low Credit Risk: Overnight funds generally invest in high-quality debt instruments, reducing the risk of default.

What are Liquid Funds?

A liquid fund is a debt mutual fund offered by an asset management company which invests the money collected from the investor in fixed-income securities having a maturity of up to 91 days. The objective of these funds is to provide liquidity along with returns. It invests the money in instruments such as commercial papers, treasury bills, certificates of deposits, etc. A liquid fund offers a slightly better return than a savings account.

Features of Liquid Fund

The key features of a liquid fund are as follows:

Liquidity: Investment in a liquid fund is highly liquid. One can easily redeem their money, and the amount is credited to their bank account within one working day.
Better Returns: Liquid funds often yield higher returns than savings accounts. This makes it attractive for investors who keep their money idle in their bank accounts.
No Lock-in: Liquid funds do not come with any lock-in period. It allows investors to withdraw their money at any time.
Professional Management: Investments in liquid funds are managed by the asset management companies’ professional, experienced fund managers.

Difference between Overnight and Liquid Funds

The key difference between overnight and liquid funds is as follows:

Particulars	Overnight Funds	Liquid Funds
Duration of Investment	The overnight funds invest in securities having a maturity of 1 day.	A liquid fund invests the money in debt securities having a maturity of up to 91 days.
Risk	These funds have the lowest risk among all other debt mutual funds.	A liquid fund also carries lower risk, but has higher risk than overnight mutual funds.
Volatility due to Interest Rates	There are no or low risks related to changes in interest rates on overnight funds.	Liquid funds generally have slightly higher interest rate risk than overnight funds due to longer maturity.
Returns	Overnight funds have the lowest returns.	Liquid funds post higher returns than overnight funds.
Default Risk	These funds have almost zero default risk.	As the securities have a slightly higher maturity, they carry a higher default risk.
Ideal Investment Duration	The investment in overnight funds is suitable for 1 to 7 days.	Investment in a liquid fund is suggested for 3 to 6 months.
Suitability	Investment in overnight funds is suitable for big institutions.	Liquid funds are suitable for retail or individual investors to park their money.
Expense Ratio	Overnight funds have a lower expense ratio.	Liquid funds have a slightly higher expense ratio than overnight funds.
Portfolio Turnover Ratio	Overnight funds have a higher portfolio turnover ratio as the money is reinvested every day.	Liquid funds have a moderate portfolio turnover ratio as the securities in the portfolio are held for a few periods.

Where should you invest your money: Overnight or Liquid Fund

The decision of whether to invest in the Overnight Funds or Liquid Funds largely depends on how long you want to invest and your preference for risk. When you want to invest for a very short time, say a few days, and you want to have maximum safety with almost no interest rate risk, then overnight funds may be an appropriate choice since they invest in securities that mature after only a single day. Alternatively, when you are looking at a period of a few weeks or up to a few months and aiming at relatively higher returns, and the risk is also not that high, liquid funds can be a better option. Overnight funds are mostly suitable for overnight parking of money, in simple terms, whereas liquid funds are best for short-term investments and emergency funds.

Conclusion

On a concluding note, both overnight funds and liquid funds are suitable options for investors who want to park their money for the short term with an objective to earn a return with liquidity. These two funds are low risk and offer high liquidity, which typically means you can easily withdraw your money as needed. Overnight funds invest in securities that have a maturity of just one day, while liquid funds invest money in securities that have a maturity of up to 91 days. However, choosing among them depends on the investor’s risk profile and investment horizon; therefore, it is advisable to consult your investment advisor before making any investment decision.

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Frequently Asked Questions (FAQs)

Are overnight funds safer than liquid funds?
Both liquid funds and overnight funds are safer investment options. But overnight funds are slightly safer than liquid funds as they invest in fixed income securities that have a maturity of one day.
Which offers higher returns among overnight funds and liquid funds?
Liquid funds offer slightly higher returns than overnight funds, because liquid funds invest in fixed income securities with longer maturity and higher coupons.
Do liquid funds have any lock-in period?
No, liquid funds do not have any lock-in period, but some liquid funds have an exit load.
Do overnight funds and liquid funds offer guaranteed returns?
No, neither overnight nor liquid funds offer guaranteed returns. As the returns of these funds are market-linked.
Can I start SIP in overnight and liquid funds?
Yes, you can easily start a SIP in overnight and liquid mutual funds.

March 15, 2026

Best Liquid Mutual Funds in India 2026

There is a type of debt fund that invests your money in short-term instruments like treasury bills, commercial papers, and certificates of deposit. These securities usually mature within 91 days, making the interest rate risk low and helping the fund maintain a stable NAV (Net Asset Value). Because of this short maturity, liquid funds are designed to give you quick access to your money with limited volatility.

SEBI rules limit these investments to a maximum maturity of 91 days and also keep a check on expense ratios, which tend to be quite low for liquid funds. Exit loads are either zero or very small for a few initial days, so most of your capital stays intact even if you need the money on short notice. The main objective remains to protect your capital while earning comparatively better returns than a savings account.

In these funds the investment is done in high credit quality funds or generally funds that have AAA and A1+ rated securities to keep default risk low. In simpler terms, liquid mutual funds act like a smarter version of a savings account. Your Investment stays relatively safe, which can be accessed quickly while making you a decent amount of money in return.

Top 10 Liquid Mutual Funds in India 2026

Fund Name	AUM (Rs.Cr.)	Expense Ratio	Min. Investment (Rs.)
Axis Liquid Direct Growth	48,415	0.11%	100
HDFC Liquid Direct Growth	72,501	0.2%	100
Aditya Birla SL Liquid Direct	60,285	0.21%	100
Union Liquid Direct Growth	8,025	0.07%	5,000
Quant Liquid Direct Growth	1,327	0.22%	5,000
ICICI Prudential Liquid Direct Growth	60,474	0.2%	99
Nippon India Liquid Direct	33,500	0.2%	1,000
Kotak Liquid Direct Growth	43,974	0.2%	1,000
SBI Liquid Direct Growth	66,511	0.19%	500
UTI Liquid Direct Growth	31,333	0.15%	500

(Data as of 11 March 2026)

Overview of Top 10 Liquid Mutual Funds in India 2026

1. Axis Liquid Direct Growth

It is a very large and popular scheme where investment is mainly done in AAA-rated T-bills, CDs, and CPs, with an average maturity of around 45 days. Low expenses and a strong track record make it a common choice for emergency funds and short-term parking.

1 Year return	3 Year return	5 Year return
6.44%	7.05%	6.01%

(Data as of 11 March 2026)

2. HDFC Liquid Direct Growth

This is one of the largest liquid funds by AUM, with most of its portfolio in high-quality bank certificates of deposit and treasury bills. Its scale and cautious investment style make it attractive for investors who prioritise stability and strong liquidity.

1 Year return	3 Year return	5 Year return
6.39%	6.99%	5.95%

(Data as of 11 March 2026)

3. Aditya Birla Sun Life Liquid Direct

This fund gives investors a mix of T-bills, CDs, and CPs, with solid and sizable returns. The fund has shown steady performance over three and five years, often slightly outpacing the category average.

1 Year return	3 Year return	5 Year return
6.44%	7.07%	6.03%

(Data as of 11 March 2026)

4. Union Liquid Direct Growth

This is a mid-sized fund with funds allocated in PSU and government-backed papers, giving investors a comfort factor on credit quality. It works well for medium-ticket surplus amounts.

1 Year return	3 Year return	5 Year return
6.40%	7.04%	6.01%

(Data as of 11 March 2026)

5. Quant Liquid Direct Growth

This is a smaller but an active fund where there is a limited exposure to higher-yielding corporate CPs. In this fund returns are competitive, but it may suit investors who are comfortable with the active actions.

1 Year return	3 Year return	5 Year return
6.28%	6.92%	6.09%

(Data as of 11 March 2026)

6. ICICI Prudential Liquid Direct Growth

This is one of the largest and most established liquid funds that allows instant redemption up to a certain amount. The fund emphasises more on T-bills to prevent higher risk, making it beneficial for managing short-term cash needs.

1 Year return	3 Year return	5 Year return
6.36%	7.00%	5.96%

(Data as of 11 March 2026)

7. Nippon India Liquid Direct

If you are an investor that is looking for credit research and high-rated securities then this is the most suitable fund for you, as this fund results in a comparable stable portfolio. It’s preferred for new liquid investors who prefer a well-known brand.

1 Year return	3 Year return	5 Year return
6.41%	7.03%	6.00%

(Data as of 11 March 2026)

8. Kotak Liquid Direct Growth

This fund holds a significant portion in bank CDs and other top-rated securities, aiming to balance safety with slightly better yields. It has managed past periods of market stress without major issues.

1 Year return	3 Year return	5 Year return
6.38%	7.00%	5.97%

(Data as of 11 March 2026)

9. SBI Liquid Direct Growth

Backed by a PSU sponsor, this fund invests heavily in government securities and high-quality corporate debt. It also offers SIP, SWP, and STP options, which help investors who want to gradually shift money into other schemes.

1 Year return	3 Year return	5 Year return
6.31%	6.96%	5.94%

(Data as of 11 March 2026)

10. UTI Liquid Direct Growth

This is a veteran liquid fund where investments are done sensibly, as this fund emphasizes liquidity buffers like overnight repos. Here the focus is on steady, low-volatility returns instead of aggressively chasing higher yields.

1 Year return	3 Year return	5 Year return
6.44%	7.05%	6.01%

(Data as of 11 March 2026)

Types of Instruments Liquid Funds Invest

Liquid funds do not invest in infrastructure companies or equities; they build a diversified basket of short-term debt instruments published by governments, banks, and large companies. The main instruments are:

Treasury Bills (T-Bills): Short-term government securities that mature within 91 days. They carry almost zero default risk and offer investors a yield around 6.3 – 6.5%.
Commercial Papers (CPs): Companies issue short-term debt with strong balance sheets. These usually offer slightly higher returns than T-bills and are often rated A1+ for safety.
Certificates of Deposit (CDs): The banks and a few other financial institutions issue the time deposits. Maturities range from a few weeks to 90 days and are backed by the strength of the banking system.
Repo and Reverse Repo: Overnight lending and borrowing arrangements with other institutions. These instruments add day-to-day liquidity to the portfolio and help meet redemption requests smoothly.

Generally, the best liquid mutual funds put 80% to 85% of their portfolio investments in financial sector debt like government securities, bank CDs, and high-quality corporate CPs. The remaining part usually goes into other AAA-rated instruments and overnight repos. This blend aims to deliver a balance of safety, liquidity, and reasonable yield.

Advantages of Investing in Liquid Funds

High Liquidity: Investors can instantly withdraw their savings up to a limited amount and the process generally takes T+1 day.
Better Returns: These funds give returns ranging from 6%-7% which is higher as compared to 3%-4% in savings accounts.
Low Volatility: Investments in short-term maturities with high-rated instruments result in minimal daily NAV fluctuations.
Useful for Emergency Funds: As investors can withdraw their savings instantly, these funds become very accessible.

Disadvantages of Investing in Liquid Funds

Lower Returns: These funds give lower returns as compared to equities and they are not designed for long-term wealth creation.
Credit and Interest Rate Risk: Although these are small, the risk associated is not exactly zero especially if a fund takes exposure to weaker issuers.
Taxed as Debt: As per the new rules the profit gained from these funds are taxed as per general income slab.

Why Invest in Liquid Mutual Funds?

These types of funds are a perfect mix of savings accounts and longer term debt options. These are best suitable for investors if they are looking for:

Putting extra cash for a few weeks or months.
Building an emergency fund without locking your savings.
Keeping funds ready for future opportunities

In savings accounts people get a return of 3-4% but in top liquid schemes a return of 6.5% – 7% can be achieved, especially on large amounts. Unlike fixed deposits, you can take out the amount saved without any penalty and investors get daily returns instead of quarterly or annually.

This possesses a substantial portion in bank CDs and other top-rated securities. The goal is to balance safety with yields. It successfully navigated past market stress without major issues

Why Liquid Funds Matter in 2026

Repo rate in India is around 6.5%, which means short-term debt instruments are also offering considerable returns in 2026. As a result, many of the best liquid funds are delivering about 6.5 – 7% annual returns, while most savings accounts are still in the 3 – 4% range. That difference becomes meaningful if you’re putting your money aside for a few months or more.

Inflation is close to 5%, so leaving money in a low-yield savings account can slowly reduce your purchasing power. Liquid mutual funds help you keep pace with inflation better, without forcing you into high-risk assets like equities. There is no lock-in, and most funds allow redemption in T+1 working days; some even offer an “instant redemption” facility for a small limit.

As an investor, this makes liquid funds a practical tool for emergency funds, parking bonuses, or keeping money aside for short-term goals. You have the option to track these funds in real time, compare returns and risks, and move between schemes easily using platforms like the Pocketful app, which also offers zero brokerage on delivery trades and a simple interface for both beginners and experienced investors.

How to Choose the Best Liquid Fund in 2026

Investors shall look for the following thighs before selecting a liquid fund:

Past Performance: Look at the fund’s past performance by judging its last 5 year returns cycle.
AUM Size and Brand: Look for large and reputable fund houses in the market as they are reliable to invest your savings.
Portfolio Quality: High share of T-bills, top-rated CDs, and CPs should be your preference, and those with too much in a single issuer should be avoided.
Expense Ratio: Lower expense ratios of around 0.07% – 0.10% will give you more gross yield. So one shall prefer funds with low expense ratio.

Investors can easily compare all these factors on the Pocketful platform, where they can check out returns, AUM, expenses, and basic portfolio details side by side and then invest.

Conclusion

Liquid Mutual Funds act as a smart and reliable substitute for cash. The best mutual liquid funds like Axis, HDFC and Aditya Birla can give returns up to 6.5%-7% along with outstanding liquidity. These funds considerably exceed the performance of conventional savings accounts. Reflect on your investment duration and risk appetite.

These funds are best suitable for those looking to save for emergency savings, short-term investments or business operating capital. However these funds are not created for long term wealth creation but gives you purchasing power confidence as you have cash that is easily accessible.

For additional market updates and insights, download Pocketful, which offers users zero brokerage on delivery trades and an easy-to-use platform designed for both beginners and experienced investors.

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Frequently Asked Questions (FAQs)

What is a liquid mutual fund?
These are direct mutual funds where your savings are put in short-term financial instruments like T-bills, CDs, and CPs. Here the maturity is up to 91 days and these funds focus on giving high liquidity with minimal risk attached to it.
Best Liquid fund for beginners?
Axis Liquid Direct Growth and HDFC Liquid Direct Growth are a prominent market choice as they have large AUM, low expenses, and consistent performance.
Can I redeem my investment anytime?
Yes, usually there is no lock-in for liquid mutual funds and most funds allow T+1 redemptions and offer instant redemption with a limited amount per day.
Are liquid funds safer than other debt funds?
They generally carry lower interest rates and credit risk than longer-duration debt funds. This is because they hold very short-term, high-rated papers.
Are liquid funds better compared to savings accounts?
Liquid funds can be a more advantageous option as compared to savings accounts as they give higher returns.

March 13, 2026

What is a Basis Point (BPS)?

Terms like “25 BPS increase” or “50 BPS cut” often appear in finance and banking news. While these terms may seem a bit technical to many, their meaning is quite simple to understand. Basis Point (BPS) is a standard way to express small changes in interest rates or percentages. Banks, investors, and central banks use this unit. In this article, we will explain the full form of BPS, its meaning, and its use in banking in simple language.

BPS Full Form

The full form of BPS is “Basis Point.” In finance and banking, it is a unit of measurement used to clearly express small percentage changes. When interest rates, bond yields, or investment returns increase or decrease slightly, they are expressed in Basis Points (BPS) rather than directly as percentages to more accurately describe the change.

Definition BPS

In finance, 1 Basis Point (BPS) equals 0.01%.
Similarly, 100 Basis Points = 1%.

This means that BPS is a standard way of measuring small percentage changes, which banks, investors and financial institutions use regularly.

BPS Formula

Percentage = BPS ÷ 100

How to Calculate BPS (Basis Point)

Formula : BPS = (New Rate – Old Rate) × 100

That is, the difference in percentage is multiplied by 100 to get the Basis Points.

Step-by-Step BPS Calculation

Step	Calculation Process	Example
Step 1	Identify the old interest rate and the new interest rate.	Old Rate = 7.50%
Step 2	Note the new rate	New Rate = 7.75%
Step 3	Find the difference between the two rates	7.75% − 7.50% = 0.25%
Step 4	Multiply this difference by 100.	0.25 × 100 = 25
Final Result	These are Basis Points.	Interest rate increase = 25 BPS

In this example, the bank’s interest rate increased from 7.50% to 7.75%, a total change of 0.25%. In financial terms, this is known as 25 Basis Points (25 BPS).

Percentage and BPS Conversion Table

Percentage Change	Basis Points
0.01%	1 BPS
0.10%	10 BPS
0.25%	25 BPS
0.50%	50 BPS
1%	100 BPS

What is BPS in Finance?

In the world of finance, the Basis Point (BPS) is used to measure small percentage changes. This is particularly useful in cases where rate changes are very small and require accurate representation.

BPS is commonly used in the following areas:

Changes in Interest Rates
Bond Yields
Mutual Fund Expense Ratios
Loan Interest Rates
Investment Returns

Even a change of 10–25 bps is considered significant in the financial market because it can have a significant impact. For example, loan costs, bond market yields, and corporate borrowing costs can be affected by these small changes.

For this reason, central banks often adjust their monetary policy by 25 bps or 50 bps in increments to balance economic activity and liquidity.

Why Financial Institutions Use Basis Points Instead of Percentages

To clearly display small changes : In finance and banking, interest rates often experience very small changes, such as 0.10% or 0.25%. Basis Points (BPS) are used to clearly communicate these small changes, making them easily understandable.
To avoid confusion : When expressing a percentage change, it is sometimes unclear whether the change is a percentage point or a percentage increase. Using BPS eliminates this confusion and allows the change to be communicated more directly and accurately.
To standardize financial communication : Banks, investment institutions, and central banks all use Basis Points to communicate rate changes in a uniform manner. This makes reports, policy updates, and market analysis easier to understand.
To accurately report policy rate changes : Central banks like the RBI often change their monetary policy by 25 bps or 50 bps. This provides the market with a clear picture of the exact change in interest rates.
For professional financial reporting : Accurate data is crucial in financial markets, bond yields, and investment analysis. Therefore, the use of Basis Points is considered a standard method in professional reporting and analysis.

Where Basis Points Are Commonly Used

Central Bank Policy : Central banks like the RBI often express interest rate changes in their monetary policy in Basis Points (BPS). For example, when a small change is made to the repo rate, it is announced as 25 BPS or 50 BPS, making it easier to understand the exact change in the rate.
Bond Market : In the bond market, BPS is used to represent small changes in bond yields. Investors and analysts often report how many BPS the yield on a government or corporate bond has increased or decreased.
Mutual Funds : In the mutual fund industry, small changes in expense ratios or returns are also expressed in Basis Points. This helps investors understand how small the change in fund costs or performance is.
Banking and Loan Rates : When banks change interest rates on loans or deposits, they are also reported in BPS. For example, banks may announce that home loan interest rates have been reduced by 20 BPS.
Financial Market Analysis : Basis points are also used in financial market reports and analysis to explain small changes in yield, interest rates, and returns, presenting the data in a professional and accurate manner.

Why Basis Points Matter for Investors

Help in Understanding Interest Rate Changes : Interest rate movements are very important for investors. When rate changes are expressed in bps, investors can easily understand how large or small the actual change is and how it may impact their investments.
Impact on Bond Investments : Even a small bps increase in yield in the bond market can affect bond prices. Generally, when bond yields rise, the prices of existing bonds fall. Therefore, investors investing in bonds closely monitor bps changes.
Debt Mutual Fund Performance : The returns of debt mutual funds also depend on interest rates. If market interest rates rise by a few bps, this changes bond prices and can directly impact the fund’s NAV.
Loan Cost and Borrowing Impact : Many investors also invest by taking out loans or have home loans or business loans. If banks raise interest rates by 20–50 bps, EMIs and borrowing costs may increase, impacting investment plans.
Market Trend and Policy Signals : When central banks change policy rates based on bps, it sends a signal to the entire market. Investors can make informed decisions about equity, bond, and fixed-income investments by observing these changes.

Common Mistakes People Make When Understanding BPS

Mistaking BPS for Percentages : Many people mistake Basis Points (BPS) for percentages. For example, some mistake 50 BPS for 50%, when in reality, 50 BPS = 0.50%. Therefore, it’s important to understand the difference between BPS and percentage points.
Confusion Between Percentage Change and Percentage Point : In finance, percentage change and percentage point change are different. BPS always represents a percentage point change. If an interest rate changes by 100 BPS, it means a direct change of 1% in the rate.
Ignoring Small Changes : Many investors and readers think that a change of 10–20 BPS is very small, but its impact on a large investment or loan amount can be significant. Therefore, even small BPS changes are considered significant in the financial markets.
Misunderstanding Financial News : When financial news reports that interest rates have increased or decreased by 25 bps, many people don’t understand it correctly. Understanding the correct meaning of BPS makes it easier to understand banking updates, policy decisions, and market reports.

Conclusion

The term Basis Point (BPS) is frequently encountered in finance and banking news. It’s a simple and accurate way to describe small changes in interest rates or returns. Once you understand the meaning of BPS, it’s much easier to understand banking updates, RBI policy announcements, and investment news. Therefore, understanding BPS is a useful tool when learning financial terms.

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Frequently Asked Questions (FAQs)

What is the full form of BPS?
The full form of BPS is Basis Point. It is used in finance to represent small percentage changes.
What does 25 BPS mean?
25 BPS means a change of 0.25%. It is commonly used to indicate an increase or decrease in interest rates.
What is BPS in banking?
In banking, BPS is used to represent small changes in loan and deposit interest rates.
How much is 100 BPS?
100 BPS = 1%. That is, if the rate increases by 100 BPS, it increases by 1%.
Why are basis points used in finance?
Basis points are used to clearly and accurately represent small changes in interest rates.
How do you convert BPS to percentage?
To convert BPS to a percentage, divide the BPS by 100. Example: 50 BPS = 0.50%.

March 10, 2026

Best Infrastructure Mutual Funds in India: Top Funds

Infrastructure has always been the backbone of a nation’s economic growth, shaping how people move, work, and build businesses.

When you step outside, you’ll probably see the indications of India’s fast development: modern airports are growing all over the nation, metro networks are growing through cities, and new highways are stretching across states. One of the most talked-about investment themes in the market today is infrastructure development, which is occurring at a rate never seen before.

If you want to grow your wealth over the next decade, finding the best infrastructure fund might be on your mind. Many investors often look for the top 5 infrastructure mutual funds India has to offer right now. In this blog, we will learn and understand how to pick the best infrastructure mutual funds for your portfolio.

What Are Infrastructure Mutual Funds?

Infrastructure mutual funds are special types of equity mutual funds, where the main objective is to invest the money of investors in the shares of companies that help build the country. As per the rules, these funds must put at least 80 percent of their money into infrastructure related businesses.

When you invest in these funds, you are buying a small piece of many different companies. The types of infrastructure companies these funds invest in are quite varied. They include:

Construction and engineering companies that build roads and bridges.
Energy companies that generate power and manage oil refineries.
Material makers who produce cement and steel.
Transport companies that manage shipping and airports.
Telecom companies that set up mobile networks and data centers.

By investing in these funds, you are not just putting your funds in one company. You bet on the entire growth sector of India.

Top 10 Infrastructure Mutual Funds in India

Fund Name	NAV (in INR)	Fund Size (in INR Cr)	Expense Ratio (%)	No. of Stocks Holding
Quant Infrastructure Fund	39.08	2,790	0.83	38
Invesco India Infrastructure Fund	71.04	1,333	0.92	40
ICICI Prudential Infrastructure Fund	206.63	8,076	1.15	61
Bandhan Infrastructure Fund	54.14	1,428	0.94	67
Nippon India Power & Infra Fund	376.06	6,772	0.96	74
Canara Robeco Infrastructure Fund	184.33	878	1.03	45
DSP India T.I.G.E.R. Fund	351.93	5,184	0.80	69
Franklin Build India Fund	167.46	3,003	0.95	38
Kotak Infrastructure & Economic Reform	76.37	2,252	0.69	51
SBI Infrastructure Fund	51.82	4,545	1.04	36

Data as on 05 March 2026

1. Quant Infrastructure Fund

The fund’s main investment is in sectors related to construction, engineering, and power generation. Here the fund aims for high capital growth by dynamically changing its stock picks based on market trends. Major holdings of this fund includes Larsen & Toubro and Reliance Industries. Altogether this is a risky fund as the fund manager takes bold bets, which can lead to quick ups and downs in a short time span.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Quant Infrastructure Fund	8.46	18.41	23.58

2. Invesco India Infrastructure Fund

In this fund the focus is on companies that have a strong business model and also have a good cash flow. Unlike others, this fund puts nearly half of its money into mid and small companies. The fund focuses on capital goods and electrical equipment companies. As there are mostly mid and small cap companies included in this fund, the risk is very high. However, it has delivered excellent long term returns in the past.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Invesco India Infrastructure Fund	12.67	22.95	20.94

3. ICICI Prudential Infrastructure Fund

This is one of the biggest funds in the infrastructure mutual funds sector. It looks for solid companies available at a fair price. It mainly invests in large and famous companies like NTPC and Interglobe Aviation. Focus of this fund is on companies related to the energy and construction sector. It is less volatile than funds that buy small companies, but it still carries high sectoral risk.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
ICICI Prudential Infrastructure Fund	13.29	24.18	25.47

4. Bandhan Infrastructure Fund

This fund tries to find companies that will directly benefit from government spending in a specific infrastructure sector. This fund has a mix of both large and small companies in the market. Top sectors include capital goods and materials based companies. This fund comes under a very high risk profile. The fund looks for turnaround stories of companies which can take time to play out.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Bandhan Infrastructure Fund	9.40	23.43	20.37

5. Nippon India Power & Infra Fund

This fund revolves around the power sector. It wants to capture growth from electricity generation and traditional infrastructure companies. It invests deeply in the utilities and industries sector. Interestingly, this fund is a little stable and less fluctuating as compared to the general market. The fund has shown a great ability to balance risk and reward.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Nippon India Power & Infra Fund	18.12	25.56	23.27

6. Canara Robeco Infrastructure Fund

In this fund the investment is majorly made in market leading companies cumulatively. It looks for businesses with a unique advantage. About 61 percent of its money is put by the fund in large companies. The focus of this fund is on companies that deal in the power and heavy engineering sector. It is a high risk fund, but focusing on big companies helps protect your money when the market falls.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Canara Robeco Infrastructure Fund	21.33	26.18	24.30

7. DSP India T.I.G.E.R. Fund

TIGER stands for The Infrastructure Growth and Economic Reforms Fund. The fund focuses on companies that do structural changes in the country. The fund buys shares across all sizes of companies. It even invests in the healthcare and telecom sector, showing a modern view of infrastructure. It is a very high risk fund and wants the investors to stay invested for at least seven years to see the best results.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
DSP India T.I.G.E.R. Fund	22.07	26.22	23.85

8. Franklin Build India Fund

This fund looks for sustainable businesses and avoids companies that only do well in specific short cycles. The main focus of the fund is on the energy sector and also holds strong positions in transport and industrials. It is known for managing risk very well as it limits downside losses better than many of its peers.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Franklin Build India Fund	20.66	28.00	24.09

9. Kotak Infrastructure and Economic Reform Fund

It aims to grow wealth by investing in companies that benefit from India’s economic development. It heavily invests in construction, telecom, and auto parts. The fund carries a very high risk rating. It also tries to capture value across many parts of the economy.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
Kotak Infrastructure & Economic Reform	20.01	20.51	21.89

10. SBI Infrastructure Fund

It aims to provide steady long term growth by picking a concentrated basket of infrastructure stocks. The fund places big bets on energy and construction giants like Shree Cement and Bharti Airtel. This fund has shown a balanced approach as it protects your capital well during bad market phases.

Fund Name	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)
SBI Infrastructure Fund	11.14	20.91	20.09

Why Invest in Infrastructure Mutual Funds?

India’s Infrastructure Growth Story: India is a developing country and growing at a fast pace. For this developing country people require more houses, faster trains, and larger data centers. For example, India’s data center capacity is expected to grow massively by 2030 because of new technologies like Artificial Intelligence. This means companies building these digital and physical assets will have a lot of work for many years.
Government Initiatives and Budgetary Support: The government is the biggest customer for infrastructure companies. Recently, the government increased its budget for infrastructure to over Rs.11 lakh crore. They have also launched plans like PM Gati Shakti to make sure projects finish on time without delays. This gives companies a clear path to make profits.
Sector Multiplier Effect on Broader Economy: You must have heard about the multiplier effect, the Reserve Bank of India shows that for every 1 rupee the government spends on infrastructure, the overall economy grows by 2.5 to 3.5 rupees. Building a road & bridges creates jobs and people with jobs tend to buy more goods. This helps the whole country grow, making infrastructure companies very valuable.
Long-Term Wealth Creation Potential: Companies that build airports or power plants face very little competition as it is too expensive for a new player to enter this sector with very less experience. Because of this, existing companies enjoy steady business and predictable cash flows. If you stay invested for a long time, these steady profits compound and create massive wealth for you.

Advantages of Investing in Infrastructure Mutual Funds

Protection from Inflation: When prices of goods go up, infrastructure companies often increase their fees. For example, toll road prices go up with inflation. This protects your investment value.
Clear Earnings: Infrastructure based companies often have long contracts with the government, investors can easily guess their future profits.
Variety: Infrastructure based companies are not limited to cement companies. You are also investing in companies related to green energy, digital data centers, and telecom networks.

Disadvantages of Investing in Infrastructure Mutual Funds

Policy Delays: These projects need a lot of permissions and norms to be fulfilled If the government changes a rule or delays a permit, the company can lose money.
Economic Cycles: If the economy slows down and interest rates go up, new construction projects are halted, which can severely hurt your fund returns.
High Risk: Because the fund only invests in one theme, if the whole infrastructure sector performs poorly, your entire investment will drop in value.

How to Choose the Best Infrastructure Mutual Fund

Past Performance and Consistency: Investors shall always look for the fund’s past performance or how the fund performed over the last 3, 5, and 10 years. A good fund is one that consistently beats its benchmark index year after year.
Fund Size and Liquidity: Fund size is also called Assets Under Management or AUM. A very small fund might be risky for the investors and a very huge fund might struggle to buy and sell small company stocks quickly. A fund with a decent size that matches its strategy is the best choice.
Fund Manager Experience: Infrastructure is a complex sector which requires understanding of government policies and big bank loans. Choose a fund managed by someone who has been in the market for a long time and has seen the markets in depth.
Expense Ratio and Charges: This is the fee the mutual fund company charges you for managing your money. Even a small difference in fees can eat up your wealth over 10 years. Always try to pick funds with a lower expense ratio, also direct plans are cheaper than regular plans.
Investment Timeline: You cannot invest in infrastructure funds for just one or two years. These projects take years to complete. You should only invest in these funds if you have patience for at least 5 to 7 years.

Conclusion

To sum it up, the infrastructure sector in India offers a brilliant chance for long term investors. The country is developing and building its future, and the government is fully supporting this growth. By adding a good infrastructure mutual fund to your portfolio, you can be a part of this amazing journey.

For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.

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Frequently Asked Questions (FAQs)

Are infrastructure mutual funds safe for beginners?
These funds carry a very high risk because they focus on only one sector so first understand the risk and then invest.
How much tax do I have to pay on my profits?
If you sell your investment before one year, you will pay a 20 percent tax on your profit. If you sell after one year, your profit up to Rs.1.25 lakh is tax free. Anything above that is taxed at 12.5 percent.
Do these funds only invest in building roads and bridges?
These funds invest in overall infrastructure alongwith telecom towers, green energy plants, airports, and digital data centers.
How long should I keep my money in these funds?
Infrastructure projects take a long time to finish and make profits. You should be ready to keep your money invested for at least 5 to 7 years to get good returns.
Can Non-Resident Indians (NRIs) invest in these funds?
Yes, NRIs can easily invest in Indian mutual funds. You just need to complete a simple KYC process and use an NRE or NRO bank account to start investing.

March 10, 2026

Best Precious Metal Mutual Funds to Invest in India

Gone were those days when one used to consider Gold and Silver as physical assets only. Now, there are various precious metal mutual funds to invest in India, through which one can invest in precious metals in a more professional, economical and convenient manner.

In today’s blog post, we will give you an overview of the best precious metal funds to invest in India.

What are Precious Metal Mutual Funds?

Precious metal mutual funds are the schemes offered by asset management companies that primarily give you exposure to precious metals or commonly known commodities such as Gold, Silver, etc. By investing in metal mutual funds, one can gain exposure to precious metals without the hassle of physical storage.

Features of Precious Metal Mutual Funds

The key features of precious metal mutual funds are as follows:

Affordability: One can easily invest in metal mutual funds with small amounts. And monthly investments through SIPs can also be made in it.
Liquidity: Unlike physical metals, mutual funds offer greater liquidity, as investors can invest and withdraw funds at any time.
Inflation Hedge: Metal mutual funds offer a hedge against inflation; hence, they can protect purchasing power during high-inflation regimes.
Transparency: Prices of metal mutual funds are linked to domestic gold prices and are influenced by global factors.

Top Precious Metal Mutual Funds to Invest in India

SBI Gold Fund
HDFC Gold ETF Fund of Fund
Nippon India Gold Savings Fund
Kotak Gold Fund
ICICI Prudential Gold ETF FoF
Nippon India Silver ETF FoF
HDFC Silver ETF FoF
SBI Silver ETF FoF
Axis Gold Fund
Edelweiss Gold and Silver ETF FoF

Funds	NAV (INR)	Net Assets (INR Cr)	Exit Load (%)	Expense Ratio (%)
SBI Gold Fund	47.56	15024	1.00 (15D)	0.24
HDFC Gold ETF Fund of Fund	48.56	11457	1.00 (15D)	0.18
Nippon India Gold Savings Fund	62.05	7160	1.00 (15D)	0.13
Kotak Gold Fund	62.83	6556	1.00 (15D)	0.16
ICICI Prudential Gold ETF FoF	49.83	6338	1.00 (15D)	0.09
Nippon India Silver ETF FoF	39.47	6099	1.00 (15D)	0.26
HDFC Silver ETF FoF	42.71	5811	1.00 (15D)	0.23
SBI Silver ETF FoF	27.59	4779	1.00 (15D)	0.30
Axis Gold Fund	49.04	2834	1.00 (15D)	0.17
Edelweiss Gold and Silver ETF FoF	36.68	3082	0.10 (15D)	0.23

(Data as of 12th Feb 2026)

Overview of the Best Precious Metal Mutual Fund

1. SBI Gold Fund

SBI Gold Fund is a recently-launched fund managed by SBI Funds Management Pvt. LTD., based in Mumbai, was launched in September 2011. Gold ETFs are the major investments in the fund as it tracks domestic gold prices, and they are a favourite investment option to provide protection against inflation, portfolio diversification, and disciplined investment in gold through SIPs.

2. HDFC Gold ETF Fund of Fund

This fund is offered by HDFC Asset Management Company Ltd., Mumbai, and was launched in November 2011. It invests in HDFC Gold ETFs to reflect the movements of the gold prices, and it is very popular in systematic investing, long-term wealth protection, and providing stability to the equity-intensive portfolios.

3. Nippon India Gold Savings Fund

This fund was started in March 2011 by Nippon Life India Asset Management Ltd, which is based in Mumbai and offers an exposure to gold using ETFs and other related instruments. It is characterised by effective cost management and is appropriate for investors interested in protecting against inflation and market volatility.

4. Kotak Gold Fund

This fund, managed by Kotak Mahindra Asset Management Company Ltd., Mumbai, and started in March 2011, tracks the movement of gold prices by investing in gold ETFs. It is the appropriate investment choice among investors who wish to have a consistent exposure to gold through SIPs with a highly rated and reputable AMC.

5. ICICI Prudential Gold ETF FoF

This gold Fund-of-Fund, launched in 2011 by ICICI Prudential Asset Management Company Ltd., Mumbai, invests in gold ETFs to track domestic gold prices. It is attractive to investors who are interested in having a good exposure to gold with the support of ICICI Prudential’s good fund management and distribution network.

6. Nippon India Silver ETF FoF

This fund was introduced in February 2022 by Nippon Life India Asset Management Ltd., Mumbai, and it offers exposure to the prices of silver in the form of silver ETFs. It fits well with the investors who want to diversify their holdings other than gold and enjoy the benefits of the industrial and investment demand for silver.

7. HDFC Silver ETF FoF

This fund is managed by HDFC Asset Management Company Ltd., Mumbai and was launched in 2022. It tracks silver prices by using silver ETFs. It provides an investor with an easy entry to the silver price movement, enjoying the convenience and transparency of the mutual fund path.

8. SBI Silver ETF FoF

This fund was launched in the year 2022 by SBI Mutual Fund. This fund tracks the performance of silver ETFs, and investors can take the exposure in it through SIPs and a lump sum.

9. Axis Gold Fund

This is a fund which follows and tracks the price of gold by investing in gold ETFs and was launched in October 2011 by the Axis Asset Management Company Ltd., Mumbai. It is characterised by fair prices and a stable monitoring system, and is appropriate for those investors who want to have a stable portfolio in the form of gold over time.

10. Edelweiss Gold and Silver ETF FoF

Launched by Edelweiss Asset Management Ltd., Mumbai, in August 2022, this is a unique fund that holds both gold and silver ETFs. It provides two precious-metal exposures within a scheme, which is perfect for investors who want more diversification in commodities.

Why One Should Invest in a Precious Metal Mutual Fund

One should invest in a precious metal mutual fund because it acts as a hedge against inflation and also provides stability in the portfolio, as it has low correlation with equity and bonds. In case of global uncertainty, geopolitical tensions, etc., investors considered precious metals as a safe haven to park funds. Hence, one can allocate a certain portion of their portfolio into precious metals.

Conclusion

On a concluding note, investment in mutual fund is the most economical and efficient way of investing in gold, silver, etc. It offers a low-cost investment option to have an allocation in gold and silver. Most of the precious metal mutual fund tracks the performance of underlying gold and silver ETFs, reflecting the changes in domestic prices of precious metals. However, one should invest in these funds only after consulting their investment advisors.

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Frequently Asked Questions (FAQs)

What is the meaning of precious metal mutual funds?
Precious metal mutual funds are the funds offered by the asset management companies which primarily invest in metals like silver, gold, etc., generally through ETFs or Overseas funds.
Do I need a demat account to invest in metal mutual funds?
No, you do not require a demat and trading account to invest in metal mutual funds.
Are returns from precious metal mutual funds guaranteed?
No, the returns from precious metals are not guaranteed; their performance depends on various factors such as interest rates, inflation, global commodities prices, etc.
Can I invest in metal mutual funds through SIP?
Yes, one can easily invest in precious metal mutual funds through SIP (Systematic Investment Plan).
What are the factors to consider before investing in precious metal mutual funds?
There are various factors which an investor should consider before investing in precious metal mutual funds, which include AMC track records, past performance of the fund, tracking error, expense ratio, etc.

March 8, 2026

What is Fund of Funds (FOF)?

People in India want to grow their savings but they do not have the right knowledge and are even afraid of investing in the stock market. If you are one of these people, then a fund of fund strategy might be the right way to invest. It is a simple way where the experts manage your savings while you sit back and watch.

FOF full form is Fund of Funds and in the world of finance, the FOF meaning is quite easy to understand. It is a type of mutual fund that does not buy stocks or bonds directly. Instead, a FOF mutual fund takes the money it gets from investors and uses it to buy units of other mutual funds. Imagine it as a “collection of collections”. If a regular mutual fund is a basket of fruits, a fund of fund is a large box that contains many different fruit baskets.

So, what is FOF in mutual fund terms for the average Indian investor? It is a tool that offers double protection. A regular fund manager picks the best stocks, but an FOF manager picks the best fund managers. More than 5 crore Indians now invest in mutual funds, and FOFs are a growing part of this list.

What is a Fund of Funds?

A Fund of Funds (FOF) is a unique investment plan where one mutual fund scheme invests in other mutual fund schemes. This is different from a traditional mutual fund. In a traditional fund, the manager uses your money to buy assets like company shares or government bonds directly. In an FOF, the manager creates a portfolio using existing mutual funds as the building blocks.

There are two main ways these funds are structured. Some are called “fettered” funds. This means the FOF only invests in other funds managed by the same company. For example, an ICICI FOF might only buy other ICICI funds. Others are called “unfettered” funds. These have the freedom to buy funds from any company in the market, allowing the manager to pick the top performers from across the industry.

Feature	Traditional Mutual Funds	Funds of Funds (FOF)
What you can get	Direct stocks, bonds, or gold	Units of other mutual funds
Who manages it	One fund manager or team	A multi-manager approach
Risk level	Depends on the stocks or bonds chosen	Spread across many funds and styles
Number of managers	Single point of expertise	Benefits of several expert managers

How Does a Fund of Funds Work?

It starts with pooling investor money. Thousands of people like you contribute small amounts, which create a large pool of capital. The FOF manager then uses this large amount to buy units of different mutual funds. This creates a “multi-layered” portfolio.

The Role of the Fund Manager

In an FOF, the fund manager does not spend their time researching individual companies. Instead, they research other fund managers and their performance. They look at how consistent a fund has been over 3 years or 5 years. They check if a fund house follows its promises. The manager then decides how much money to put into each underlying fund.

Advantages of the Multi-Manager Approach

The multi-manager approach is like having a team of experts instead of just one. Every fund house has a different strength. One house might be great at picking small companies, while another is better at safe government bonds. An unfettered FOF can pick the best small-cap fund from one place and the best debt fund from another. This approach also reduces what we call “manager risk.”

Types of Fund of Funds

There are many types of FOFs available in the Indian market today. Each type serves a different goal. Depending on whether you want high growth or safety, you can choose the one that fits you best.

1. Multi-Asset Fund of Funds

A multi-asset FOF invests in a mix of equity, debt, and gold funds. The goal is to give you a balanced portfolio with one single investment. Financial experts often use the “Thali” analogy for this.

2. ETF-Based FOFs

Exchange-Traded Funds (ETFs) are funds that follow a market index like the Nifty 50. An ETF-based FOF allows you to invest in a basket of ETFs through a regular mutual fund application.

3. International Fund of Funds

Many Indian investors want to own shares of famous global companies like Apple, Google, or Amazon. However, investing directly in the US or European markets is very hard but in International FOFs you give them money in Indian Rupees, and they invest it in international funds.

4. Gold Fund of Funds

A Gold FOF invests in Gold ETFs, which track the market price of 24-karat gold. You can start a Systematic Investment Plan (SIP) in gold for as little as Rs.500. It gives you the same returns as physical gold without any storage worries.

Comparison of Popular Gold Investment Methods

Feature	Physical Gold	Gold ETF	Gold FOF
Storage	Home or Locker (Risky/Fees)	Digital (Safe)	Digital (Safe)
Demat Account	Not Required	Required	Not Required
Making Charges	Yes (High making charges)	No	No
Liquidity	Medium (Jeweler)	High (Trade on exchange)	High (Redeem with AMC)
Small Investment	Not easy	Can be done	Very easy (via SIP)

Other types of FOFs

Sector specific FOFs: These funds focus here on specific sectors like technology or pharma, or specific countries.
Passive vs. Active FOFs: Passive FOFs rely on simply following an index to keep costs low. Active FOFs try to beat the market by making smart choices.
Hedge Fund FOFs: These are for very wealthy investors (HNIs). They use complex strategies to make money even when the market is falling. In India, these usually require a minimum investment of Rs.1 crore.

Best FOF Funds in India

Fund Name	AUM (Rs.Cr)	1 year return	3 year return	5 year return	Expense Ratio
ICICI Pru Bharat 22 FOF – Direct Growth	2,500	27.37%	27.89%	27.03%	0.12%
Motilal Oswal Nasdaq 100 FOF – Direct Growth	6,082	21.88%	31.47%	18.33%	0.22%
Kotak US Specific Equity Passive FOF Direct	3,870	24.62%	32.07%	19.27%	0.54%
DSP World mining Overseas Equity Omni FOF	2,22,000	87.7%	46.7%	18.7-19.5%	1.6-1.7%
ICICI Pru Thematic Advantage Fund FOF	8,693	10.46%	17.86%	17.30%	0.47%

(Data as of 28 Feb,2026)

Advantages of Investing in FOFs

Excellent Diversification: The main advantage of FOFs is that the investors get access to a variety of mutual funds by doing just one investment. This layered diversification protects the investors from sudden market swings. If one company or even one fund house gives a bad result then your overall loss can be limited.
Professional Selection: There are thousands of schemes in India. An FOF manager uses institutional research to analyze performance, consistency, and risk. You get the benefit of this deep research without doing your own R&D.
Ease of Access: FOFs provide access to funds that might be hard for you to invest in directly. This includes niche sector funds or international funds from global partners like Franklin Templeton or DSP BlackRock. You can manage a global portfolio with one single NAV (Net Asset Value) to track.
Discipline and Rebalancing: When the market goes up, we want to buy more equity and as it goes down, we feel like selling. An FOF manager follows a strict plan, they even rebalance the portfolio based on market conditions, not emotions.

Disadvantages of Investing in FOFs

Higher Layered Fees: Since an FOF invests in other funds, there are two layers of fees. You pay a management fee for the FOF itself. The underlying funds also have their own expense ratios.
Diluted Returns: Diversification is a great option for safety, but too much of it can dilute your returns. If one fund in the FOF gives good returns, its impact might be reduced if the other four funds only give average returns.
Tax Complexity: In India, FOFs are often taxed like debt funds, even if they invest in equity funds. This is because they do not invest directly in the shares of Indian companies. If you are in the 30% tax bracket, the short-term tax on an FOF can be quite high.

How to Invest in a Fund of Funds

The process of investing in an FOF is straightforward. You can do it online from the comfort of your home.

1. Complete Your KYC

The first step is always KYC (Know Your Customer). You need to submit your PAN card, Aadhaar card, and address proof. Most modern apps allow you to complete this digitally in a few minutes. You may need to do a short video verification to prove you are the person in the documents.

2. Choose the Right Fund

Look for an FOF that matches your financial goals. If you want to grow wealth over ten years, look for an equity-heavy FOF. If you want safety for a goal two years away, look for one with more debt and gold exposure. Always check the expense ratio and the track record of the fund manager before choosing.

3. Pick Your Investment Mode

SIP (Systematic Investment Plan): This is one of the suitable and easy ways for most people.You invest a fixed amount like Rs.1,000 every month with discipline and help you buy more units when the market is low.
Lump Sum: If you have good savings, you can invest it all at once. This is best if you know that the market is at a good price.

4. Track and Review

Once you invest, you have to keep an eye on it and check your fund’s performance every few months. Compare it to other similar FOFs as most apps will give you a detailed report of your returns and the current value of your portfolio.

Read Also: Types of Mutual Funds in India

Using the Pocketful App for Investing

Pocketful is an excellent platform for both new and experienced investors in India. In this you get a user-friendly way to manage your mutual funds and FOFs.

Zero Brokerage: Pocketful provides zero brokerage on delivery trades, making it very affordable for the users.
Simple KYC: You can complete your digital KYC and start trading in just minutes.
One-Click Investing: They offer “Pockets,” which are curated baskets of investments based on themes like Green Energy or Digital India.
Tools for Success: The app includes a Portfolio Analyser where you can easily identify risks and you also get a dedicated customer support team for your doubt and queries.

Conclusion

Fund of Funds (FOF) are a powerful way to make your financial life very easy. In FOF the investors get a safety net as there is a multi-layer diversification and you can reduce your stress by not choosing the individual mutual funds. While your expenses are little due to fees and even a unique tax structure, the professional management and ease of access to global markets and gold often outweigh these negatives. Whether you are a beginner looking for a balanced “thali” or a seasoned investor looking for global exposure, FOFs provide a structured and disciplined path to wealth.

For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.

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Frequently Asked Questions (FAQs)

Is a Fund of Funds safer than a regular mutual fund?
Generally yes as FOF is diversified across multiple funds and several fund managers, it is less likely to see extreme drops if one manager makes a mistake.
Can I invest in an FOF without a Demat account?
Most of the FOFs do not require a Demat account and you can easily buy them directly through an AMC or through apps like Pocketful just like regular mutual funds.
Why is the taxation of FOFs different?
In India, a fund is taxed as “Equity” only if it invests directly in Indian shares. Since FOFs invest in other funds, the law treats most of them as non-equity or debt funds for tax purposes.
Can I start an SIP with a small amount in an FOF?
Generally FOFs allow you to start an SIP with as little as Rs.500. This is one of the best ways for young professionals to start their investment journey.
Are the higher fees of FOFs worth it?
If you have the time and knowledge to pick and track five different funds yourself, you can save on the extra FOF fee. But if you want a “hands-off” experience and professional rebalancing, the small extra cost is often worth the convenience.

March 6, 2026

Category: Mutual Funds

Top 10 Best Flexi Cap Mutual Funds in India

List of Top 10 Best Equity Mutual Funds in 2026

Overiew of Best Equity Mutual Funds in India

1. Parag Parikh Flexi Cap Fund

2. HDFC Flexi Cap Fund

3. Kotak Flexicap Fund

4. Aditya Birla Sun Life Flexi Cap Fund

5. SBI Flexicap Fund

6. UTI Flexi Cap Fund

7. ICICI Prudential Flexicap Fund

8. Franklin India Flexi Cap Fund

9. Canara Robeco Flexi Cap Fund

10. Bank of India Flexi Cap Fund

Advantage and Disadvantage of Flexi Cap Mutual Fund

Advantages of Flexi Cap Mutual Fund

Disadvantages of Flexi Cap Mutual Fund

Factors to Consider While Choosing a Flexi Cap Mutual Fund

Who Should Invest in Flexi Cap Mutual Fund?

How to Invest in Flexi Cap Mutual Fund

Conclusion

Frequently Asked Questions (FAQs)

Meaning: What exactly is a flexi cap mutual fund?

Benefits: Why should you invest in flexi cap funds?

How do you use flexi cap funds in your portfolio?

Is there a lock in period for flexi cap funds?

What is the minimum amount required to start investing?

Top 10 Best Equity Mutual Funds in India

List of Top 10 Best Equity Mutual Funds

Overview of Best Equity Mutual Funds in India

1. Parag Parikh Flexi Cap Fund

2. Quant Small Cap Fund

3. Nippon India Small Cap Fund

4. SBI PSU Fund

5. UTI Nifty 50 Index Fund

6. Mirae Asset Large Cap Fund

7. Canara Robeco Bluechip Equity Fund

8. Kotak Emerging Equity Fund

9. HDFC Mid Cap Opportunities Fund

10. ICICI Prudential Bluechip Fund

Advantage and Disadvantage of Equity Mutual Fund

Advantages

Disadvantages

Factors to Consider While Choosing an Equity Mutual Fund

Who Should Invest in Equity Mutual Funds

How to Invest in Equity Mutual Fund

Conclusion

Frequently Asked Questions (FAQs)

What is the meaning of an Equity Mutual Fund?

What are the key advantages of investing in equity mutual funds?

How to use equity mutual funds for my financial goals?

Do I need a large amount of money to start investing?

Are equity mutual funds safe for beginners?

What is Association of Mutual Funds in India (AMFI)?

What is AMFI Full Form?

What is AMFI in Mutual Fund Industry?

Mutual Fund Industry in India is Regulated By Whom?

SEBI vs AMFI

History & Formation of AMFI

Why AMFI Was Needed

Objectives of AMFI

Major Functions of AMFI

AMFI Certification & ARN Explained

What is ARN?

ARN Registration Process (Step-by-Step)

Common Myths About AMFI

AMFI’s Role in Financial Awareness

Real Impact

Conclusion

Frequently Asked Questions (FAQs)

What is the full form of AMFI?

What is AMFI in the context of mutual funds?

Who regulates the mutual fund industry in India?

Is AMFI a government organization?

Does AMFI guarantee returns?

Best Passive Mutual Funds in India 2026

What Are Passive Funds?

Key Features of Passive Funds

Pros of Passive Funds

Cons of Passive Funds