Guide to Best Banks for Mutual Funds in 2023

Investing in mutual funds offers a flexible and potentially high-return opportunity for both new and experienced investors. The maximum benefit can be derived by choosing the right bank or asset management company that offers a variety of mutual funds with competitive performance metrics. In this guide, we'll explore the top mutual funds from leading banks, the benefits of direct investment, and how to make informed decisions.

Top Performing Mutual Funds from Leading Banks

Here are the top three mutual funds from reputable banks, backed by impressive performance graphs:

ICICI Prudential Technology Direct Plan Growth: 1 Year: 46.41%, 3 Years: 40.14%, 5 Years: 32.58% Tata Digital Fund Direct Growth: 1 Year: 45.82%, 3 Years: 37.88%, 5 Years: 33.69% Axes Small Cap Fund Direct Growth: 1 Year: 37.51%, 3 Years: 31.05%, 5 Years: 22.87%

These funds showcase strong performance over varying time spans, making them excellent investment options for both short-term and long-term goals.

Benefits of Direct Mutual Fund Investing

Most banks offer mutual funds as a service to their customers. However, many charge a front-end or back-end load, which could eat away at your returns over time. Investing in mutual funds directly through mobile apps or dedicated platforms can save you fees and maximize your investment potential. Here are some of the best platforms to consider:

Groww: Best in terms of user interface and a wide variety of investment options. ETMoney: Offers a robust user interface and a range of investment options, including stocks and SGBs.

Mobile apps like Groww and ETMoney provide a seamless and convenient way to invest in mutual funds, making it easier for investors of all experience levels.

Choosing the Right Mutual Fund

It's crucial to make your investment choices based on performance metrics and not just the bank name. Here are key factors to consider:

Performance Metrics: Look at the historical performance of different mutual funds over varying time periods to assess their stability and growth potential. Expense Ratio: Higher expense ratios can eat into your returns, so choose funds with a lower cost. Manager Fund: Select funds managed by experienced fund managers with a track record of success.

For instance, Axis Bank offers a range of mutual funds including Blue Chip Fund, Mid-cap Fund, Flexi Cap Fund, and Focused Equity Fund. Similarly, SBI Mutual Fund offers a variety of options like Blue Chip Fund, Mid-cap Fund, and Tax Saving Plan.

Direct Mutual Fund Investing: A Detailed Guide

To invest in direct mutual funds, you can follow these steps:

Open a mutual fund portal online or download a dedicated app. Create an account and complete your KYC (Know Your Customer) process. Choose the AMC (Asset Management Company) of your choice from reputable firms such as SBI Mutual Fund, ICICI Prudential, Aditya Birla Sunlife, HDFC Mutual Fund, Motilal Oswal, Franklin Templeton, and DSP BlackRock. Deposit funds through e-mandate or regular investment plans (SIPs).

While banks offer mutual funds, they typically involve additional fees. Instead, direct investment through mutual fund portals or apps can offer better returns and more flexibility. Happy investing!