Topic Details
https://freefincal.com/feed/gn
Last item retrieved
<item> <title>Handpicked List of Mutual Funds July-Sep 2026 (PlumbLine)</title> <link>https://freefincal.com/handpicked-list-of-mutual-funds-july-sep-2026-plumbline/</link> <pubDate>Fri, 26 Jun 2026 00:30:15 +0000</pubDate> <dc:creator><![CDATA[M. Pattabiraman]]></dc:creator> <guid isPermaLink="false">https://freefincal.com/?p=356994</guid> <description><![CDATA[These are the freefincal handpicked list of mutual funds. New and old investors can use...]]></description> <content:encoded><![CDATA[<figure><img src="https://freefincal.com/wp-content/uploads/2022/06/Plumbline-Handpicked-List-of-select-Mutual-Funds-by-freefincal.jpg" class="type:primaryImage" /></figure><p>These are the freefincal handpicked list of mutual funds. New and old investors can use it according to their specific needs. The list, titled “PlumbLine,” has been published since September 2017 to help beginners use the <strong><a href="https://freefincal.com/robo-advisory-software/">freefincal robo advisor tool</a></strong>.</p> <p><strong>Most importantly, Plumbline is a mix of my opinions, skin in the game (where I invest), </strong>and quantitative picks (performance-based). For a portfolio update, see <a href="https://freefincal.com/portfolio-audit-2025-the-annual-review-of-my-goal-based-investments/">Portfolio Audit 2025: The annual review of my goal-based investments</a> or <a href="https://freefincal.com/auditing-my-retirement-portfolio-for-mint-newspapers-guru-portfolio/">Auditing my retirement portfolio for Mint Newspapers Guru Portfolio</a> or <a href="https://freefincal.com/17-years-of-mutual-fund-investing-my-journey-and-lessons-learned/">17 years of mutual fund investing: My Journey and lessons learned</a>.</p> <p>It is not meant to satisfy everyone! It is intended to match up with my integrity. Readers new to Plumbline should read the following two sections carefully before proceeding to the fund names.</p> <p>The objective is to identify “some” funds for <em>every</em> possible investment duration and include them in a diversified portfolio.</p> <p>If you want to choose equity mutual funds in the categories of your choice based solely on consistent performance, or choose debt funds based on the quality of their portfolios, you can use our <a href="https://freefincal.com/category/monthly-fund-screeners/"><strong>monthly equity mutual fund, mutual debt fund, index fund, or ETF screeners</strong></a>.</p> <h2>What is Plumbline, and how should I use it?</h2> <p>A plumb line is an alignment device that fixes the vertical or horizontal alignment. This list, called Plumbline, indicates that fund choices must align with specific requirements.</p> <figure id="attachment_51134" aria-describedby="caption-attachment-51134" class="wp-caption aligncenter"><a href="https://freefincal.com/wp-content/uploads/2020/12/Mason-using-plumbline-to-check-correctness-of-a-wall.jpg"><img fetchpriority="high" decoding="async" class="wp-image-51134 size-full" src="https://freefincal.com/wp-content/uploads/2020/12/Mason-using-plumbline-to-check-correctness-of-a-wall.jpg" alt="A plumb line is an alignment device used to establish vertical alignment, and therefore the horizontal. This list, called Plumbline, indicates the need for mutual fund choices that align with specific requirements." width="418" height="627" /></a><figcaption id="caption-attachment-51134" class="wp-caption-text">A plumb line is an alignment device used to establish vertical alignment, and therefore the horizontal. This list, called Plumbline, indicates the need for mutual fund choices that align with specific requirements.</figcaption></figure> <p><strong>1:</strong> PlumbLine is a boring list of mutual funds updated every quarter. There are plenty of good mutual funds that are not part of Plumbline. If your funds are different, you are probably better off. Do not worry about it.</p> <p><strong>2: </strong> Do not use PlumbLine to confirm your choices! PlumbLine is meant for investors who have used the <strong><a href="https://freefincal.com/robo-advisory-software/">freefincal robo advisor tool</a></strong>.</p> <p><strong>3: </strong>If the funds in the list change tomorrow, you will have to take a call on what you need to do based on the fund performance from the date <em>you invested.</em> I cannot help you here by talking <a href="https://freefincal.com/plumbline-november-2017-handpicked-list-mutual-funds/">about how to review</a>.</p> <p><strong>4:</strong> This is a handpicked list and will be subject to my biases. I invest with a bias to get things done and analyse without bias to present facts. So please bear this distinction in mind.</p> <p><strong>5: </strong>This is a goal-based list and not a category-based list. That is, you will not find a fund for each category. You will find at least one fund per need (goal and risk-taking ability)</p> <p><strong>Disclaimer: </strong>The recommendations in this article are meant only for educational purposes. It neither constitutes research nor investment advice.</p> <p>This list has no meaning unless you view it from the right perspective and context; otherwise, it can be helpful. The hope is that the robo-advisor tool will provide such a perspective that you still must process and interpret. Finally, I am only human and more than capable of making mistakes.</p> <p>Also, I am a below-average investor, fund picker or analyst. I am not a fan of looking into the fund portfolio. I prefer funds with a narrow investment mandate. I am sure you will agree that most picks are lame and obvious; this list is no exception and lacks any real specialness. If the funds here stop performing in the future or have credit default issues, all I can do is modify the list (if required). <strong>Note: </strong>All statements about low or high risk are relative to other types of funds and not absolute.</p> <p><strong>The author/editor of freefincal is not responsible for your investment choices, capital gains, or losses. </strong>If a PlumbLine fund is present in your portfolio, it means nothing. It means nothing if none of your funds is on the PlumbLine list. <strong>Mutual funds (and mutual fund recommendations) are subject to ignorance and market risks. Please read and understand all scheme-related documents before investing</strong>.</p> <h2>FAQ on Plumbline</h2> <p>1. “<strong>Why are X, Y or Z funds not part of Plumbline?”</strong> —> Plumbline is <em>my</em> list. Don’t expect me to make a list that matches your expectations.</p> <p>2. <strong>“The funds you have listed are not even 4-star funds”.</strong> —> I don’t care. Star ratings are injurious to your mental and fiscal health. Comparisons with Plumbline are injurious to peace of mind.</p> <p>3. <strong>“Plumbline does not feature the top funds from your <a href="https://freefincal.com/category/monthly-fund-screeners/">monthly screener </a>“.</strong> Yeah, because I don’t always consult it. Plumbline is a qualitative + quantitative assessment of a fund’s investment strategy, mandate and performance.<strong> </strong></p> <p>4. <strong>“Your list is biased and partial to certain funds and certain AMCs”.</strong> Okay, then — thank you for not using it.</p> <p>5. If you are a new mutual fund investor, download this Free e-book: <a href="https://freefincal.com/mutual-fund-faq-new-investors/">Mutual Fund FAQ 100 Essential Q & A for new investors!</a></p> <p><img decoding="async" class="aligncenter wp-image-29203 size-full" src="https://freefincal.com/wp-content/uploads/2019/05/MF-FAQ-post-cover-2.jpg" alt="Free e-book: Mutual Fund FAQ 100 essential Q & A for new investors!" width="924" height="485" /></p> <blockquote><p><strong>Warning: Never choose any product only because its taxation is lower. Always consider risks.</strong></p></blockquote> <h2>Liquid Fund</h2> <p>Although FDs and RDs after tax make much more sense than most short-term debt funds, liquid funds and other cousins can be used to diversify the emergency fund or to park money for an unknown duration. Don’t expect too much return, though.</p> <ul> <li><strong>Investment Duration:</strong> A Few months and above</li> <li><strong>Fund name:</strong> <span ><strong>Quantum Liquid Fund Direct Plan-Growth Option, Parag Parikh Liquid Fund</strong></span></li> <li>You can also choose funds from established AMCs such as ICICI, SBI, or HDFC.</li> <li><strong>Nature</strong> Conservative: These funds invest in short-term bonds up to 91 days in maturity.</li> <li><strong>Interest rate risk:</strong> low. The NAV can fall if there is a sudden mismatch between market demand and supply. For example, in <a href="https://freefincal.com/why-liquid-funds-and-money-market-funds-also-fell-in-the-last-few-days/">March 2020, the demand fell below the supply</a>. The NAV can also fall if the RBI rate suddenly increases significantly (e.g., July 2013). In both cases, recovery would usually be swift.</li> <li><strong>Credit risk:</strong> low</li> <li><strong>Suitable for</strong> Use for parking money</li> <li><strong>Returns:</strong> a bit more than an SB account</li> <li><strong>Caveats:</strong> Debt fund portfolios change each month; while both funds tend to avoid credit risk, investors can occasionally check the credit quality of the portfolio</li> <li><strong>Disclosure:</strong> Invested in Quantum Liquid for emergencies. A tiny cash segment of my retirement portfolio is here as well.</li> <li><strong>Also, </strong><a href="https://freefincal.com/can-i-use-liquid-funds-for-long-term-goals-with-equity-mfs/">can I use liquid funds for long-term goals with equity MFs?</a></li> <li><strong>Pro tip:</strong> If the star rating of a liquid fund bothers you, check the portfolio’s credit quality. Typically, the higher the credit quality, the lower the return and, therefore, the star rating. There will not be much difference in returns between a five-star-rated fund and a one-star-rated fund in this category. So choose wisely.</li> </ul> <h2>Equity Arbitrage</h2> <p>Arbitrage funds can be used as a tax-efficient way of parking money. However, they have some risks which may not be easy to appreciate. Also, these funds need bond support to bolster returns, as the Indian market has matured.</p> <ul> <li><strong>Duration</strong> 1Y and above (never use for shorter-term). <strong>Do not expect much return from these just because the tax is favourable!</strong></li> <li><strong>Nature:</strong> These are hybrid funds now! They can invest up to 35% in bonds! The majority of the portfolio (65% plus) is arbitrage-like, such as “cash and carry arbitrage” (linked below). The funds have debt fund-like volatility by construction. Volatile for less than a year. Quarterly returns can be negative. <a href="https://freefincal.com/why-arbitrage-funds-become-more-volatile-when-market-uncertainty-increases/">Volatile when the market is turbulent</a>.</li> <li><strong>Update Feb 2026: </strong>Exposure in debt instruments shall be limited to the government securities with a maturity of less than 1 year, as well as repo of<br /> government bonds only</li> <li>The fund mentioned below is nothing special. It is mentioned more as a recommendation because it is what I use. For alternatives, use our <a href="https://freefincal.com/category/monthly-fund-screeners/">debt mutual fund screener</a>.</li> <li><strong>Fund name:</strong> <span ><strong>ICICI Equity Arbitrage Fund-Direct Plan Growth Option</strong></span>. (There is nothing special about this.) You can also consider the <span ><strong>Parag Parikh Arbitrage Fund Direct Plan Growth option.</strong> </span></li> <li><strong>Note</strong>: There will not be much difference in risk and reward between a 5-star arbitrage fund and a 3-star rated one.</li> <li><b>Interest rate risk: </b>low. Applicable to the bond part of the portfolio.</li> <li>You can use our <strong><a href="https://freefincal.com/category/monthly-fund-screeners/debt-mf-screener/">debt fund screener</a></strong> to check the portfolio of these funds.</li> <li><strong>Other risks: </strong>Uncertain periods, such as after a crash, could reduce arbitrage opportunities and returns. If you choose the investment duration correctly, the main risk will be the fund delivering a lower-than-expected return. So expect less!</li> <li><strong>Suitable for</strong> parking money, medium-term goals and generating income. See: <a href="https://freefincal.com/how-to-generate-tax-free-income-from-arbitrage-mutual-funds/">Generating tax-free income from arbitrage mutual funds</a>.</li> <li><b>Returns </b>are expected to be about 4-6% ish pre-tax.</li> <li><strong>Con:</strong> Complex product. You need to understand how the product works. Try this: <a href="https://freefincal.com/how-do-arbitrage-mutual-funds-work/">How Arbitrage Mutual Funds Work: A simple introduction</a>.</li> <li><strong>Disclosure: </strong>ICICI Equity Arbitrage is part of my son’s education goals debt portfolio. My wife also uses it separately as part of our emergency fund.</li> </ul> <h2>Passive Debt Fund</h2> <p>This is a good choice for even long-term portfolios for investors who wish to avoid too much volatility (from, for example, gilt funds)</p> <ul> <li><strong>Duration: </strong>At least 5 years (with some basic awareness of debt funds). Experienced, risk-aware investors may consider shorter durations.</li> <li>Conservative option for long term goals. Those who prefer lower volatility than gilt funds can choose this. This also means fair, moderate returns about 7%-ish</li> <li><span ><strong>Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund</strong></span></li> <li>Not suitable for 1Y or 2Y goals! Could be volatile.</li> <li><a href="https://freefincal.com/edelweiss-short-duration-index-fund-who-can-invest/">Edelweiss Short Duration Index Fund: Who can invest?</a></li> </ul> <h2>Money market</h2> <ul> <li><strong>Duration</strong> 1Y and above</li> <li><strong>Funds: </strong><span ><strong>ICICI Pru Money Market Fund.</strong></span><a href="https://freefincal.com/icici-pru-money-market-fund-review/"> See Review: When & how to use it</a>. <strong><span >HDFC Money Market Fund</span>.</strong></li> <li>This is one category in which the fund portfolios’ credit-rating profiles differ little. So there is nothing special about the funds above.</li> <li><strong>Nature:</strong> Conservative. Expect day-to-day NAV fluctuations driven by demand and supply. These funds are invested in the money market, where cash is the commodity. The bonds are short-term (low interest rate risk).</li> <li><strong>Credit risk</strong> is relatively low, but defaults are possible.</li> <li><strong>Interest rate risk:</strong> low (due to investors pulling out from the debt market, these funds fell about 1% from 11th to 25th March, but recovered when the RBI removed excess liquidity by buying bonds and lowering rates by March 27 2020)</li> <li><strong>Suitable for</strong> saving money, generating income, and for short- to medium-term goals</li> <li><strong>Returns</strong> A bit more return than liquid funds, often comparable to arbitrage funds</li> <li><strong>Disclosure: </strong>I have not invested as it is unnecessary for my needs.</li> </ul> <h2>Gilt Long-Term</h2> <p>Investors must appreciate that these funds are also dynamic bond funds and will have variable interest rates, durations, and demand-supply risks. This will test the patience of most investors, especially those used to nice FD-like returns.</p> <ul> <li><span ><strong>HDFC Gilt Fund Direct Plan-Growth Option</strong></span></li> <li><span ><strong>ICICI Pru Gilt Fund Direct Plan-Growth Option</strong></span></li> <li><span ><strong>SBI Gilt Fund Direct Plan-Growth Option</strong></span></li> <li>Each fund in this category would have its own style. So, investors must study the investment style history in the factsheets before investing. See: <a href="https://freefincal.com/how-to-choose-a-gilt-mutual-fund/">How to choose a gilt mutual fund</a>.</li> <li>Suitable only for long-term goals. For first-time investors, consider a 10-year or longer term. The NAV will fluctuate rapidly.</li> <li>It can give years of poor returns! Only for those who are patient!</li> <li><strong>Disclosure: </strong>I am invested in the ICICI Gilt fund. See: <a href="https://freefincal.com/why-i-partially-switched-from-icici-multi-asset-fund-to-icici-gilt-fund/">Why I partially switched from ICICI Multi-Asset Fund to ICICI Gilt Fund</a>.</li> </ul> <h2>Debt-oriented hybrid funds</h2> <p>This is a good choice for long-term goals if investors are willing to take on more risk than the passive funds or gilt funds suggested above.</p> <ul> <li><b> </b><span ><strong>Parag Parikh Conservative Hybrid Fund Direct Plan-Growth Option </strong><span >(taxed as per slab)</span></span></li> <li>It can be used as an alternative to gilt funds* as a debt component in a long term portfolio. We suggest using it for 5Y or longer durations.</li> <li>*This fund invests in long-term state government bonds + a small amount of equity, + a small amount in REITs. During stock market crashes, the NAV will fall! So be prepared for this. The NAV will be volatile even on normal days!</li> <li>Also see: <a href="https://freefincal.com/who-should-invest-in-parag-parikh-conservative-hybrid-fund/">Who should invest in Parag Parikh Conservative Hybrid Fund?</a></li> <li><b> </b><span ><strong>Parag Parikh Dynamic Asset Allocation Fund </strong><span >(Gains from units purchased on or before 2Y are short-term gains and taxed as per the slab, and gains from older units are taxed at 12.5%)</span></span></li> <li>This may or may not outperform the conservative hybrid fund. See: <a href="https://freefincal.com/can-i-use-parag-parikh-dynamic-asset-allocation-fund-as-a-debt-fund-for-a-long-term-goal/">Can I use Parag Parikh Dynamic Asset Allocation Fund as a debt fund for a long-term goal?</a></li> <li> <strong>Disclosure:</strong> I am invested in the conservative hybrid fund for both my retirement and my son’s future goals. However, after the recent tax law changes, I have redirected future investments into the dynamic asset allocation fund for my retirement portfolio.</li> </ul> <h2>Hybrid Funds (equity-oriented)</h2> <ul> <li><strong>Duration: </strong>Treat all such funds as pure equity funds, so they are strictly long-term. Use our robo tool for allocation.</li> <li>The following funds have a consistent track record against the CRISIL Hybrid 65:35 Index. <ul> <li><span ><strong>ICICI Prudential Equity & Debt Fund – Direct Plan-Growth</strong></span></li> <li><span ><strong>Canara Robeco Equity Hybrid Fund – Direct Plan-Growth</strong></span></li> <li><span ><strong>Mirae Asset Hybrid Equity Fund</strong></span></li> <li><span ><strong>SBI Equity Hybrid Fund Direct Plan-Growth option</strong></span></li> </ul> </li> <li><span ><strong>ICICI Multi-asset Fund Direct Plan-Growth option</strong></span> (this holds a minimum of 10% of gold (or Silver or commodity derivatives) and 10% of bonds at all times, but is equity-oriented due to legacy; I have been an investor in this fund since it was ICICI Dynamic Fund. The equity allocation will be determined using an in-house model similar to the one used in their monthly fact sheets and for funds such as ICICI Balanced Advantage.</li> <li>Those who want to invest in gold for “diversification” can consider this multi-asset fund.</li> <li><strong>Risk</strong> is slightly lower than that of diversified equity funds, so treat them as pure equity.</li> <li><strong>Disclosure:</strong> I am invested in ICICI Multi-asset for my son’s future portfolio.</li> </ul> <h2>Flexi-cap</h2> <ul> <li><strong>Fund name: <span >Parag Parikh Flexicap Fund</span><span > (legacy entry)</span></strong></li> <li><strong>Note: <span >This suggestion is for existing investors only! They can continue to hold until the performance is satisfactory. We recommend that new investors opt for index funds. </span></strong></li> <li>If you choose an active fund in this category, a large midcap or large-cap-oriented flexicap will be better. However, expect periods of underperformance. Our monthly <a href="https://freefincal.com/category/monthly-fund-screeners/equity-mf-screener/"><strong>active equity fund screener</strong></a> can help you choose a consistent performer<a href="https://freefincal.com/category/monthly-fund-screeners/equity-mf-screener/"><strong>.</strong></a></li> <li><strong>Disclosure:</strong> I have been invested in the Parag Parikh Flexicap Fund since its NFO stage for retirement. For a portfolio update, see <a href="https://freefincal.com/17-years-of-mutual-fund-investing-my-journey-and-lessons-learned/">17 years of mutual fund investing: My Journey and lessons learned</a>.</li> <li><strong>Risk:</strong> There is too much reliance on the fund manager. All funds experience ups and downs in performance. This fund is too young to have seen a dip in performance. Like all funds, it will inevitably experience a rough patch.</li> <li><strong>Warning:</strong> The fund’s AUM has increased significantly. Whether this affects the performance immediately or not, it limits the fund manager’s ability to churn (whether he wants to or not is another matter). <strong>So do not expect this fund’s past performance to repeat!</strong></li> <li>See: <a href="https://freefincal.com/will-parag-parikh-flexi-cap-funds-large-aum-affect-its-performance/">Will Parag Parikh Flexi Cap Fund’s large AUM affect its performance?</a></li> <li>If the last two points worry you, <strong>stick to an index fund.</strong></li> </ul> <h2>Large Cap</h2> <ul> <li><strong>Duration:</strong> Strictly long-term with proper asset allocation. Use our robo tool for allocation. <ul> <li><span ><strong>UTI Nifty Index Fund-Direct Plan-Growth Option or </strong></span></li> <li><span ><strong>HDFC Sensex Index Fund-Direct Plan-Growth Option or</strong></span></li> <li><span ><strong>HDFC Index Fund-NIFTY 50 Plan(G)-Direct Plan</strong></span></li> </ul> </li> <li>Investors can also choose <span ><strong>Nifty 100</strong></span>, <span ><strong>Nifty 500</strong></span>, or <span ><strong>Nifty LargeMidcap 250</strong></span> index funds.<strong> </strong>However, they must have the right expectations. See: <ul> <li><a href="https://freefincal.com/nifty-50-or-nifty-500-which-index-fund-should-i-choose/">Nifty 50 or Nifty 500, which index fund should I choose?</a> (Sep 2025).</li> <li><a href="https://freefincal.com/can-i-invest-in-a-nifty-largemidcap-250-index-fund/">Can I invest in a Nifty LargeMidcap 250 Index Fund?</a> (Sep 2025).</li> <li>Also see: <a href="https://freefincal.com/nifty-vs-nifty-next-50-vs-nifty-midcap-150-vs-nifty-smallcap-250-return-comparison-sep-2025/">Nifty vs Nifty Next 50 vs Nifty Midcap 150 vs Nifty Smallcap 250: Return Comparison Sep 2025</a>.</li> </ul> </li> <li> You can also select an index fund from our <a href="https://freefincal.com/category/monthly-fund-screeners/index-fund-screener/"><strong>monthly index fund tracking error screener</strong></a>.</li> <li><strong>Who should use it?</strong> If you wish to adopt a passive investing strategy (eliminate fund manager risks) and want to track a less volatile large-cap index. <ul> <li><a href="https://freefincal.com/downside-protection-active-mutual-funds/">Active funds provide downside protection</a> more often than they beat the index. Index funds do not provide downside protection (falling below the index) or upside performance (rising above the index). Whether this is important or not is up to you. I aim to adopt a more balanced approach to passive investing. Active or passive, what matters is a good financial plan, the right asset allocation and the right risk management strategy. See: <a href="https://freefincal.com/active-vs-passive-investing-the-ground-reality/">Active vs passive investing: the ground reality</a></li> <li>What we do know for sure is that about 50% of funds in each category struggle to beat the index. At the very least, this scenario is likely to continue in future. Therefore, choose passive funds only if you appreciate that picking future active fund winners is impossible.</li> </ul> </li> </ul> <p><strong>It should be no surprise that there are no active large cap funds on our list: </strong><a href="https://freefincal.com/only-five-large-cap-funds-have-comfortably-beat-nifty-100/">Only Five Large Cap funds have comfortably beaten the Nifty 100.</a> So there is no point in using an active large cap fund anymore. <span > </span></p> <h2>Mid-cap & Small-cap</h2> <p>Small cap funds can be quite frustrating to hold. They lose almost all the gains from a bull run in the next bear run. So our recommendation is to avoid them altogether. See:</p> <ul> <li><a href="https://freefincal.com/why-a-sip-in-small-cap-mutual-funds-is-a-waste-of-money-and-time/">Why a SIP in Small Cap Mutual Funds is a waste of money and time</a></li> <li><a href="https://freefincal.com/only-these-3-small-cap-mfs-have-outperformed-nifty-next-50-consistently/">Only these three small Cap MFs have outperformed the Nifty Next 50 consistently</a></li> <li><a href="https://freefincal.com/why-investing-in-small-cap-mutual-funds-does-not-make-sense/">Why investing in small cap mutual funds does not make sense!</a></li> <li><a href="https://freefincal.com/why-are-you-comparing-small-cap-mutual-funds-with-a-mid-cap-index/">Why are you comparing Small Cap Mutual Funds with a Mid Cap Index?!</a></li> <li><a href="https://freefincal.com/which-small-cap-mutual-fund-should-i-include-in-my-portfolio/">Which small cap mutual fund should I include in my portfolio?</a></li> </ul> <p>Unfortunately, contrary to popular opinion, <a href="https://freefincal.com/myth-busted-active-mid-cap-mutual-fund-managers-can-easily-beat-the-index/">mid cap mutual fund managers struggle to beat the index</a>. See:</p> <ul> <li><a href="https://freefincal.com/these-four-midcap-mutual-funds-have-outperformed-nifty-next-50-consistently/">Only four midcap mutual funds consistently outperformed the Nifty Next 50</a>.</li> <li><a href="https://freefincal.com/only-3-out-of-28-mid-cap-mfs-consistently-beat-nifty-midcap-150/">Only 3 out of 28 mid cap MFs consistently beat Nifty Midcap 150!</a></li> </ul> <p>Therefore, we do not recommend any specific funds here. I believe that most investors require little exposure to these categories from a Flexible-Cap or aggressive hybrid fund.</p> <p>Consult the <a href="https://freefincal.com/category/monthly-fund-screeners/equity-mf-screener/"><strong>latest equity mutual fund screener</strong></a> for consistent performers among active mid-cap or small-cap funds.</p> <ul> <li><strong>If you wish to invest in active small cap funds, </strong>we believe blind SIPs are inefficient. Periodic profit-booking may be necessary. In addition, you may consider tactical entry. <ul> <li><a href="https://freefincal.com/do-not-use-sips-for-small-cap-mutual-funds-try-this-instead/">Do not use SIPs for Small Cap Mutual Funds. Try this instead!</a></li> <li><a href="https://freefincal.com/why-a-sip-in-small-cap-mutual-funds-is-a-waste-of-money-and-time/">Why a SIP in Small Cap Mutual Funds is a waste of money and time</a></li> </ul> </li> <li><strong>Duration:</strong> Strictly long-term with proper asset allocation. Use our robo tool for overall allocation. <ul> <li><strong>Allocation: </strong>Do not exceed 40-50% <strong>within</strong> the equity portion. Your midcap + smallcap allocation should not exceed 40-50% of your equity allocation. For example, 60% large cap + 30% midcap + 10% small cap (if you must!). A large cap-dominated portfolio is recommended.</li> </ul> </li> </ul> <p><strong>What about a passive mid-cap or small-cap option?</strong></p> <ul> <li>A passive small cap index fund is a terrible idea. The index underperforms the mid cap index most of the time. See: <a href="https://freefincal.com/nifty-vs-nifty-next-50-vs-nifty-midcap-150-vs-nifty-smallcap-250-return-comparison-sep-2025/">Nifty vs Nifty Next 50 vs Nifty Midcap 150 vs Nifty Smallcap 250: Return Comparison Sep 2025</a></li> <li><strong>So then a midcap index fund?</strong><strong> </strong>In principle, yes, but these funds have not been tested in turbulent markets. Also, how they behave when their AUM increases is something I have wondered. It will be hard to buy and sell large mid cap (or small cap stocks), especially in volatile conditions, as the <a href="https://freefincal.com/impact-cost/">impact costs</a> would be high.</li> <li>So I would recommend using a Nifty Next 50 index fund, as it behaves like a mid cap index. See: <a href="https://freefincal.com/warning-nifty-next-50-is-not-a-large-cap-index/">Warning! Nifty Next 50 is NOT a large cap index!</a></li> <li><span ><span >You can choose funds like</span> <strong>UTI</strong></span><strong><span > Nifty Next 50 Direct Plan Growth Option or ICICI Nifty Next 50 Direct Plan-Growth Option.</span></strong></li> </ul> <h2>Closing Remarks</h2> <p>The fund names mentioned above are of little use if your investments are not aligned with your goals and you do not know how to evaluate them systematically. We recommend that investors identify their goals, choose a suitable asset allocation plan, and consider their investment options. Here is a guide <a href="https://freefincal.com/how-to-perform-a-portfolio-audit/">to performing a portfolio audit.</a></p> <p>The post <a href="https://freefincal.com/handpicked-list-of-mutual-funds-july-sep-2026-plumbline/">Handpicked List of Mutual Funds July-Sep 2026 (PlumbLine)</a> appeared first on <a href="https://freefincal.com">freefincal</a>.</p> ]]></content:encoded> <post-id xmlns="com-wordpress:feed-additions:1">356994</post-id> </item>
These legal disclaimers are here because this hub is run by Google as a service. If you don't want to agree to these terms you can use a different hub or even run your own. The PubSubHubbub protocol is decentralized and free.
©2022 Google - Terms of Service - Privacy Policy