Top Performing Mutual Funds of 2021 – Equity, Debt, and Hybrid Funds

Currently, the most popular form of investment, without a doubt, is mutual funds. Investing directly in stocks is another popular option, however, there is a higher element of risk in this method and investors also might find it tough to create a well-balanced portfolio on their own. That is why mutual funds are quite an investor-friendly option of investment. Investors can opt for investing in either equity funds, debt funds, or even hybrid funds, based on their investment goals, time horizon, and various other factors. Let’s have a look into these funds, and give you an idea of some of the funds you could opt for, according to your requirements.

1. Equity Funds

An equity fund is one where the investment is done in stocks. These funds have a higher risk in contrast to other mutual fund types. However, remember that there are a wide variety of equity mutual funds that are categorized based on their investment objective, asset allocation, and investment strategy. These points are crucial while choosing an equity mutual fund. Based on the investment objective, the equity funds include small-cap, large-cap, mid-cap, large &mid-cap, and multi-cap funds. Based on asset allocation, an investor could opt for the Equity-linked savings scheme or ELSS. Let us look at some of the schemes across various categories of equity funds and their returns in the last 2 years.

Large CapReturns
Scheme Name20212020
ICICI Prudential Bluechip Fund29.9614.2
Canara Robeco Bluechip Equity Fund26.5124.85
Mirae Asset Large Cap Fund29.1314.96
UTI Nifty Index Fund25.315.56
Flexi CapReturns
Scheme Name20212020
Parag Parikh Flexi Cap Fund46.9733.55
UTI Flexi Cap Fund3532.45
PGIM India Flexi Cap Fund46.4538.54
DSP Flexi Cap Fund33.8719.98
Large & Mid-CapReturns
Scheme Name20212020
Canara Robeco Emerging Equities Fund38.6626
Mirae Asset Emerging Bluechip Fund40.5723.63
Kotak Equity Opportunities32.0317.83
Axis Growth Opportunities Fund46.6826.69
Mid CapReturns
Scheme Name20212020
PGIM India Midcap Opportunities Fund66.9251.12
Axis Midcap Fund41.7827.77
Edelweiss Mid Cap Fund52.4528.45
Kotak Emerging Equity Fund49.1723.47
Scheme Name20212020
Tata Small Cap Fund73.5925.33
Kotak Small Cap73.4736.14
Nippon India Small Cap Fund75.8730.34
Axis Small Cap Fund60.7124.58
Scheme Name20212020
ICICI Prudential Long Term Equity Fund34.6514.34
Mirae Asset Tax Saver Fund37.1523.39
IDFC Tax Advantage (ELSS) Fund50.8819.96
DSP Tax Saver Fund36.4116.14

2. Debt Funds

A debt mutual fund is one that makes investments in corporate bonds, money market instruments, and various other fixed-income instruments. They also go by the names Bond Funds or Fixed Income Funds. These funds aim at creating wealth by way of interest income along with a steady appreciation of the capital that has been invested, over the duration of the investment.  The Fund Manager of a debt fund considers the credit ratings of the underlying assets wherein the investments will be made. Investors who are risk-averse or do not wish to invest in equity can opt for a debt fund. However, note that debt funds also come with a minimal amount of risk, credit risk as well as interest rate risk. Hence, they are not completely risk-free. Investors can opt for a short-term or medium-term debt fund depending on their investment horizon. Let us look into some of the schemes across various types of debt funds and their returns in the last 2 years.

Scheme Name20212020
ICICI Prudential Liquid Fund3.354.39
Aditya Birla Sun Life Liquid Fund3.384.4
Tata Liquid Fund3.354.43
LIC MF Liquid Fund3.44.42
Ultra Short-TermReturns
Scheme Name20212020
Kotak Savings Fund3.676.31
Aditya Birla Sun Life Savings Fund4.067.16
HDFC Ultra Short Term Fund3.886.72
SBI Magnum Ultra Short Duration Fund3.566.06
Low DurationReturns
Scheme Name20212020
Kotak Low Duration Fund4.268.72
ICICI Prudential Savings Fund3.898.7
Aditya Birla Sun Life Low Duration4.338.61
Nippon India Low Duration Fund4.818.04
Medium DurationReturns
Scheme Name20212020
SBI Magnum Medium Duration Fund4.4112.78
HDFC Medium Term Debt Fund5.810.92
IDFC Bond Fund – Medium Term Plan3.1311.68
Axis Strategic Bond Fund5.9511.28
Long DurationReturns
Scheme Name20212020
ICICI Prudential Long Term Bond Fund1.0111.58
IDFC Bond Fund – Income Plan1.912.48
Nippon India Nivesh Lakshya Fund1.1113.8
Banking & PSU FundReturns
Scheme Name20212020
ICICI Prudential Banking and PSU Debt Fund4.699.78
IDFC Banking & PSU Debt Fund3.7411.31
Axis Banking & PSU Debt Fund3.79.93
Aditya Birla Sun Life Banking & PSU Debt Fund3.9411.28

3. Hybrid Funds

Hybrid Funds are those mutual fund schemes that invest in many asset classes i.e. they invest in equity, debt, etc., based on the scheme’s investment objective. By investing in multiple asset classes, these funds help in portfolio diversification, thereby minimizing the level of risk. Hybrid funds can generate better returns in contrast to debt funds and are less riskier when compared with equity funds. Due to this, hybrid funds are a popular investment option for conservative investors. There are different types of hybrid funds such as the arbitrage fund, aggressive hybrid, balanced advantage, etc. Let us look at some of the schemes across various types of hybrid funds and their returns in the last 2 years.

Scheme Name20212020
Edelweiss Arbitrage Fund4.585.25
Tata Arbitrage Fund4.545.79
Aditya Birla Sun Life Arbitrage Fund4.524.74
UTI Arbitrage Fund4.464.95
Aggressive HybridReturns
Scheme Name20212020
ICICI Prudential Equity & Debt Fund42.49.52
SBI Equity Hybrid Fund24.4913.64
DSP Equity & Bond Fund25.4818.18
Canara Robeco Equity Hybrid Fund24.2621.07
Balanced HybridReturns
Scheme Name20212020
Edelweiss Balanced Advantage Fund20.4124.48
ICICI Prudential Balanced Advantage Fund15.8612.37
Kotak Balanced Advantage Fund14.4315.01
Nippon India Balanced Advantage Fund17.3812.74


Selecting a mutual fund is totally dependent on various factors such as the risk tolerance levels, the investment horizon, financial goals, age, etc. It is essential that an investor must analyze these factors before finalizing any investment option. Mutual funds are a great way to begin investments as they offer the SIP or Systematic Investment Plan which makes it very convenient for an investor as they can begin with a low investment amount and gradually increase it with time. SIPs also have numerous other benefits to offer, which has made them a very popular investment option. Hope this article helps you understand the different types of mutual funds and the schemes that you could consider investing in.