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Friday, 2 February 2018

Top mutual funds to invest in 2019



Which are the best mutual fund schemes to invest? Most investors have this query before they start investing in mutual funds. Curiously, it is the first question most investors ask or type on a search engine. However, it is also the main reason why many investors keep on postponing their investments forever.

Even when the online search shows some results, most investors don't proceed further. They are still unsure about the dependability of the list. That is why we at ETMutualFunds.com thought about putting together a list of mutual fund schemes to help investors who are struggling with this question.

Here is ETMutualFunds.com ’s list of best or top mutual fund schemes that you may consider investing in 2019. We have included almost every important category of schemes in our recommendation list: equity schemes, hybrid schemes, and debt schemes. You can scroll down to take a look at the complete list.

However, before proceeding further, here are a few pointers you must keep in mind. One, you should always choose your mutual funds based on your financial goals, investment horizon, and risk profile.

If your goals need to be met within less than five years, you may consider investing in debt mutual fund schemes. If you are investing for long-term goals of over five years, you may consider hybrid or equity schemes. You should invest in riskier options like mid cap and small cap mutual fund schemes only if you have a longer investment horizon of seven to 10 years.

Note, it is extremely important to choose a debt mutual fund scheme that matches your investment horizon. Even while choosing equity mutual fund schemes, you should not overlook this aspect. For example, you should have a minimum investment horizon of five to seven years to invest in an equity scheme. However, if you are investing in mid cap or small cap schemes, you should have a longer investment horizon (seven to 10 years).

However, you should keep in mind that all debt or hybrid or equity mutual funds do not have the same element of risk. Some schemes are riskier than the others. For example, overnight funds and liquid mutual fund schemes are the least risky among debt mutual funds, whereas credit risk schemes can be highly risky. Similarly, a small cap scheme is riskier than a largecap or multicap scheme.

That is why it is extremely important for investors to keep their risk appetite in mind while choosing a mutual fund scheme. Any mismatch could cause a lot of heartburn later. If you do not have the appetite for the risk associated with your investments, you may find it extremely difficult to hold on to your investments during trying times.

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