In recent times, the Indian stock market has shown itself resilient to the pandemic worldwide, and delivered stellar returns despite ongoing restrictions on economic activity in the country. Mutual fund holders have reaped rewards for taking on the risk of investing in equity shares, and have managed to outperform the returns from all other asset classes this year. However, before investing in any mutual fund, one must also examine the company that is offering the mutual fund. The best mutual fund companies are not only more famous and trustworthy, but also have greater experience and capabilities to generate better returns on your invested capital. Therefore, without further ado, here is our list.
List of the 10 best mutual fund companies in India:
1. SBI Mutual Funds
Founded in 1987, SBI Mutual Funds is one of the most top performing and largest mutual funds in India. It had the largest assets under management (AUM) of more than 5 lakh crores rupees in the March 2021 quarter, and offers various types of fund schemes to cater to different requirements and risk appetites of investors. It is an experienced and reputed player in the mutual fund industry, and an excellent company to invest in mutual funds.
2. HDFC Mutual Funds
A subsidiary of HDFC Bank, HDFC Asset Management Company was incorporated in 1999 and launched its first mutual fund scheme in 2000. Apart from ICICI Prudential, it is the only private sector mutual fund company to have an A.U.M. of over 4 lakh crores in 2021. It has shown substantial growth since its inception, and is one of the best mutual fund companies in India.
3. ICICI Prudential Mutual Funds
ICICI Prudential Mutual Funds is a joint venture created in 1998 between ICICI Bank and Prudential plc, a prominent financial services provider from the UK. It is one of the largest asset management companies (AMC) in India, with over 4 lakh crores A.U.M. in 2021. It serves over 7.4 million investors in over 350 locations, and aims to create long term wealth for its clients through its innovative products.
4. Aditya Birla Sun Life Mutual Funds
A joint venture between Aditya Birla group and Sun Life Financials from Canada, Aditya Birla Sun Life Mutual fund was founded in 1994 and now has above 2 lakh crores assets in management in 2021. It offers diversified mutual fund schemes that aim to deliver consistent returns, such as equity, bonds, hybrid and balanced mutual funds. It is an experienced mutual fund company that aims to protect and grow the capital of its investors.
5. Nippon India Mutual Funds
Formerly known as Reliance Mutual Funds, Nippon India Mutual Funds was founded in 1995 and is one of the largest mutual funds in the industry. It has an A.U.M. of more than 2 lakh crores since 2019, and is a star performer in the industry. It was the first mutual fund company to be listed on the Indian stock exchange, and it offers various specialized funds to cater to the needs of all its investors.
6. Kotak Mahindra Mutual Funds
A fully-owned subsidiary of Kotak Mahindra Bank, Kotak Mutual funds was founded in 1998, and is one of the biggest mutual fund companies in India. It has over 2 lakh crores assets under management and an investor base of 6.5 million plus customers, and is a major mutual fund company. It has significant experience in the industry, and offers multiple types of mutual funds to meet the requirements of its clients.
7. Axis Mutual Fund
Founded in 2009, Axis Mutual Fund is one of the largest growing mutual fund companies in India. Nearing an A.U.M. of 2 lakh crores, it has over 6 million investor accounts and offers 50 balanced mutual fund schemes that aim for the long term growth of its investors’ wealth. It is a well-known mutual fund in India because of its good performance and customer centricity.
8. UTI Mutual Funds
UTI Mutual Funds was a part of the Unit Trust of India, and is one of the oldest mutual fund companies in India. It is owned by LIC, SBI, Bank of Baroda and Punjab National Bank, and is one of the most trusted and reputed mutual fund companies. It also offers the National Pension Scheme (NPS) product at all UTI offices. It has more than 1 lakh crores assets under management, and is a major competitor in the mutual funds industry.
9. IDFC Mutual Funds
A subsidiary of IDFC Limited, IDFC Mutual Funds was founded in 2000 and has grown in leaps and bounds ever since. With an A.U.M. above 1 lakh crores, it offers equity, debt, liquid alternatives and portfolio management services to generate returns for its customers. It is one of the largest fast-growing mutual fund companies in the industry, and a great choice for buying mutual funds.
10. DSP Mutual Funds
Formerly known as DSP BlackRock Mutual Funds and DSP Merrill Lynch Funds, DSP group is an Indian mutual fund company whose founders were among the founding members of the Bombay Stock Exchange. It launched its first mutual fund in 1997, and is an experienced and professional player in the mutual funds industry. It aims to provide excellence to its customers in all its investment products.
That concludes our list of the best mutual fund companies in India. When buying a mutual fund, it is very important to look at the reputation and performance of the company, as only the best companies with a strong track record can deliver the best returns to its investors. While past performance doesn’t guarantee future returns, a sustained bad performance in the past may well indicate the lack of potential in the future, especially if the company hasn’t undergone any major changes in its management. If you found this article helpful, please share and comment below.