Due to high liquidity, ease of use and higher returns, Debt (e.g Liquid Funds) mutual funds are probably the best alternative to Fixed Deposit investments. It's also very easy to manage taxes with liquid or debt funds and if you're in higher tax brackets, you could save some in taxes with debt funds. However, if you're a young investor who can take risk and want to stay invested for long term (5y+), equity mutual funds or index funds are better for creating wealth. We've listed few mutual funds here, to help you get started. The list has been prepared based on the parent company and the past performance of the fund. The debt funds have no exit load fees (that means you can withdraw money from these funds any time, without any "minimum duration" requirement).

Note : Past performances are only indicative. You should thoroughly research before making any decision.

Debt & Liquid Funds

Recommended for emergency funds or parking money for any duration etc. Returns are similar to FD and offers higher liquidity.

Fund Name Annual Returns (5y) Fund Class Exit Load
Parag Parikh Liquid Fund (PPLF) 5.4% Liquid Fund 0.00%
Quantum Liquid Fund Direct 5.5% Liquid Fund 0.00%
Motilal Oswal Liquid Growth Direct Plan 5.4% Liquid Fund 0.00%
Above liquid funds are as safe as FD, as their primary holding consist of T. Bills issued by Govt.
Risk Level : Low

Equity Funds

Good alternative to long term FD (5y, 10y etc). Returns are significantly higher than FD and it's not that risky if you can stay invested in long term (10y +).

Fund Name Annual Returns (5y) Fund Class Exit Load
UTI Nifty Index Growth Direct Plan 10.3% Index (Nifty 50) 0
UTI Nifty Next 50 Index Growth Direct Plan - Index (Nifty Next 50) 0
Parag Parikh Long Term Equity Growth Direct Plan 11.8% Multi Cap Fund 2% (1y)
Motilal Oswal Nasdaq 100 14% US Equity NA
Motilal Oswal S&P 500 Index Fund 10% US Equity NA
Equity mutual funds are good for beating inflation and generating wealth over long term.
Risk Level : High
Tip : Buy direct plans of the mutual funds, because it generates higher returns as compared to regular plan.