Mutual funds are investment vehicles that pool together the funds of various investors to invest in a portfolio of securities such as stocks, bonds, and other assets.
In India, mutual funds are managed and regulated by the Securities and Exchange Board of India (SEBI). There are many mutual fund houses in India. These mutual fund houses provide different schemes that investors can choose from according to their investment goals.
Top Mutual Fund Houses in India
Several mutual fund houses in India offer a wide range of investment options to cater to the needs of different investors.
Some of the top mutual fund houses in India are-
S.No. | Mutual Fund House |
1. | SBI Mutual Fund |
2. | ICICI Prudential Mutual Fund |
3. | HDFC Mutual Fund |
4. | Aditya Birla Sun Life Mutual Fund |
5. | Kotak Mahindra Mutual Fund |
6. | Nippon India Mutual Fund |
7. | Axis Mutual Fund |
8. | UTI Mutual Fund |
9. | IDFC Mutual Fund |
10. | DSP Mutual Fund |
Factors To Consider Before Choosing A Mutual Fund House
Mutual funds are among India's most popular investment options due to their flexibility, affordability, and diversification benefits. However, choosing the right one can be overwhelming with many mutual fund houses in India. Therefore, before making an investment decision, it is crucial to consider various factors impacting the mutual fund's performance.
Some of the critical factors to consider before choosing a mutual fund house in India are-
Performance History
It is essential to look into the track record of the mutual fund house and the performance of its schemes in the past. This will give you an idea of the house's ability to deliver consistent returns over time.
Asset Size
A larger asset size can indicate stability, reliability, and consistency in returns. However, it is essential to also consider the fund's performance relative to its size.
Fund Management
A mutual fund house's success depends mainly on the expertise of its fund managers. Therefore, it is essential to research the fund manager's experience and investment philosophy to determine if it aligns with your investment objectives.
Expense Ratios
It is essential to consider the costs associated with investing in a mutual fund, including expense ratios and management fees. High expense ratios can eat into your returns over time, so choosing a low-cost mutual fund is crucial.
Investment Style
Some mutual fund houses specialize in specific investment styles, such as growth or value investing. Therefore, it is essential to align your investment style with the mutual fund house you choose.
Market Reputation
The market reputation of the mutual fund house can be a good indicator of its overall quality. Consider looking into the company's history and its rating by industry experts.
Investor Services
It is essential to consider the level of customer service and support the mutual fund house provides. You should be able to access investment information and receive assistance when needed.
Investment Options
Consider the range of investment options the mutual fund house offers, including equity, debt, balanced and international funds. You should also consider the minimum investment amount required in a mutual fund.
Best Mutual Fund Houses in India: Overview
1) SBI Mutual Fund
SBI MF was set up on June 29, 1987, and was incorporated in February 1992. It was India’s second fund house after the Unit Trust of India.
SBI manages assets via investment expertise in domestic mutual funds and even Alternate Investment Funds, offshore funds, etc.
2) ICICI Prudential Mutual Fund
ICICI Prudential MF was set up in 1993. It is one of the oldest and largest AMCs in India. It is a joint venture between ICICI Bank and Prudential Plc, a financial services company based out of the U.K.
3) HDFC Mutual Fund
HDFC Mutual Fund ranks third in our list of top mutual fund houses by AUM (Assets Under Management). It was founded in 1999. It became a publicly listed company in August 2018.
With its rewarding returns, HDFC Mutual Fund gained to become a top mutual investment choice amongst investors.
4) Aditya Birla Sun Life Mutual Fund
Established in 1994, Aditya Birla MF is a joint venture between Aditya Birla Capital Ltd. and Sun Life AMC Investments, a financial services company based in Canada.
It is often a top choice for investors looking forward to earning a decent return on their investments.
5) Kotak Mahindra Mutual Fund
Fifth on our list of top 10 mutual fund houses in India is Kotak AMC, which began its operations in December 1998 and was the first AMC in India to offer a dedicated gilt fund for government securities. It operates as a wholly-owned subsidiary of Kotak Mahindra Bank.
6) Nippon India Mutual Fund
Nippon AMC was earlier known as Reliance Mutual Fund. The name was changed on September 28. 2019.
Nippon India Mutual Fund became the largest foreign-owned mutual fund house in India, wherein Japan’s Nippon Life Insurance currently holds a 75% stake. This marked the exit of Anil Ambani’s Reliance Capital. The AMC has been registered with Sebi since 1995.
7) Axis Mutual Fund
Axis AMC was incorporated in October 2009. Axis Bank and the rest by Schroder Singapore Holdings Private Ltd hold around 75% of the AMC. It is one of the most renowned mutual fund houses offering a wide range of investment options.
8) UTI Mutual Fund
UTI Mutual Fund was registered with SEBI in 2003. In the same year, the Unit Trust of India (UTI) was bifurcated into Specified Undertaking of The Unit Trust of India(SUUTI) and UTI MF.
It is one of the oldest mutual fund houses, renowned for its decent returns on the investments made.
9) IDFC Mutual Fund
Amongst the top mutual fund houses in India is IDFC Mutual Fund. It was established in 2000. The fund is promoted by IDFC Ltd., which is a finance company in India providing finance and advisory services for infrastructure projects.
10) DSP Mutual Fund
DSP Mutual Fund was earlier known as DSP Blackrock Mutual Fund. The joint venture DSP and BlackRock were formed in 2008 and lasted till 2018. Before Blackrock, the company was in a joint venture with Merrill Lynch Investment Managers in 1996. It was then known as DSP Merrill Lynch Asset Management (India) Ltd.
Conclusion
In conclusion, investing in mutual fund houses can significantly grow your wealth and help you achieve your financial goals. Moreover, with the help of professional fund managers, you can diversify your portfolio and potentially earn higher returns than if you invested in individual stocks.
However, it's essential to thoroughly research the fund and its management team before investing and understand the fees and risks associated with mutual funds. Additionally, consult with a financial advisor to ensure that a mutual fund investment aligns with your overall financial strategy.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Himanshu Sinha
