Due to high liquidity, ease of use and higher returns, Debt (e.g Ultra Short Term Debt) mutual funds are probably the best alternative to Fixed Deposit investments. However, if you're a young investor who can take risk and want to stay invested for long term (5y+), equity mutual 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 Funds

Recommended for emergency funds etc. Returns are better than FD and offers higher liquidity.

Fund Name Annual Returns (5y) Fund Class Exit Load
Franklin India Ultra Short Bond Fund (G) 9.9% Ultra Short Term Debt 0.00%
Reliance Money Manager Fund (G) 8.9% Ultra Short Term Debt 0.00%
Birla Sun Life Short Term Fund (G) 9.6% Short Term Debt 0.00%
Debt mutual funds are also good alternative to long term fixed deposits.
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
Franklin India Bluechip Fund (Growth) 14.1% Large Cap 1% (1y)
HDFC Top 200 Fund (Growth) 14.8% Large Cap 1% (1y)
ICICI Prudential Large & Mid Cap Fund (Growth) 18.11% Large Cap 1% (1y)
Franklin India Prima Plus Fund (Growth) 18.8% Diversified Equity 1% (1y)
HDFC Equity Fund (Growth) 15.9% Diversified Equity 1% (1y)
Franklin India Prima Fund (Growth) 26.7% Small & Mid Cap 1% (1y)
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.