Top Types of Mutual Funds to Invest in 2024
Published: 2024-05-30 04:40:33

Mutual Funds are a fairly low-risk investment type when it comes to investing in the share market. They offer various investment products like equity funds, debt funds, hybrid funds, etc. From the emergence of sustainable investment practices to the integration of artificial intelligence in fund management, this year promises both innovation and opportunity within the mutual fund industry. If you’re someone looking for a less risky investment option, then stick with us, as we’ll be covering the top types of mutual funds to invest in 2024.

 **1) Equity Funds**
Equity funds are like a team of investors who buy parts of many companies. They are one of the most aggressive **[types of mutual funds](https://www.tatacapitalmoneyfy.com/blog/mutual-funds/what-are-the-types-of-mutual-funds/)**. They aim to make money by selling these parts for more than they paid. By investing in equity funds, people can join the stock market without buying individual company shares. Some of the Equity funds that can be considered as an investment option in 2024 are.

**Aditya Birla Sun Life PSU Equity Fund Direct-Growth**

The Fund provided a 3-year return of 48.5%, and its assets total to ₹3,403.63 crores with an expense ratio of 0.50%. It primarily invests in high-risk equities, with significant holdings in large-cap, mid-cap, and small-cap stocks, including State Bank of India, Bank of India, Bank of Baroda, etc.

One can also consider investing in SBI PSU Direct plan growth, ICICI Prudential Infrastructure direct growth, and HDFC infrastructure direct plan growth, as even they gave a tremendous 3-year return of 45.5%, 43.77%, and 42.95%, respectively.

**2) Debt Funds**
These funds invest their money in government securities, like government bonds, saving bonds, treasury bills, etc. They aim to earn interest income, providing stable returns with lower risk compared to stocks. These funds are suitable for those looking for a steady income and are less risky than investing directly in the stock market. Some of the funds that can be used as an investment option in 2024 are.

**Aditya Birla Sun Life Medium Term Plan Direct-Growth**
The fund manages ₹1,863.18 crores with an expense ratio of 0.85%, investing primarily in debt, with significant holdings in government securities and low-risk securities. Also, it gives a 3-year return of 12.99%

Other debt funds that can be considered are the Bank of India Short-Term Income Fund Direct-Growth, UTI Credit Risk Fund Direct-Growth, and UTI Dynamic Bond Fund Direct-Growth, as they provided 3-year returns of 12.19%, 11.54%, and 10.6% respectively.

**3) Hybrid Funds**
Hybrid mutual funds are like a mix of different types of investments, such as stocks and bonds, in one fund. They aim to balance risks and returns by diversifying across asset classes. These funds are suitable for investors seeking a blend of growth and stability in their portfolios.

**Quant Multi-Asset Direct Fund Growth**
The fund's AUM totals ₹1,829.08 crores with an expense ratio of 0.76%. It primarily invests in equities (65.84%), with allocations to large-cap, mid-cap, and small-cap stocks, and also holds a portion in debt (6.89%), including government securities and low-risk securities. Apart from this, it also gave a 3-year return of 30.72%
Other hybrid funds that can be considered as an investment option are ICICI Prudential Equity & Debt Fund Direct-Growth, HDFC Balanced Advantage Fund Direct Plan-Growth, JM Aggressive Hybrid Fund Direct-Growth as they provided 3-year returns of 27.58%, 27.08%, and 26.38% respectively. 

## Conclusion
Mutual funds are a less risky investment option compared to the stock market, with various types available to suit different investment goals. For those seeking growth, equity funds like Aditya Birla Sun Life PSU Equity Fund Direct-Growth present promising opportunities. At the same time, debt funds like Aditya Birla Sun Life Medium Term Plan Direct-Growth offer stability. For a balanced approach, one can invest in hybrid funds such as Quant Multi-Asset Direct Fund Growth, which provides a mix of growth and strength. Other than this, one can even consider Tata Asset Management Ltd which offers mutual fund schemes for investors to choose from. With careful consideration of these options, investors can make informed investment decisions in 2024 with confidence.