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Best Mutual Funds to Buy in 2019 Based Your Investment Goals

Best Mutual Funds 2019

Best Mutual Funds 2019- With the incumbent government retaining power at the center, India is poised to see strong developmental and economic reforms which will guide India on a higher growth path. Now that the election results are declared, it’s time for us to think about where to invest that capital parked.

But the choice of funds to invest depends on various factors. The most important question you need to answer is what goals do I want to achieve and what are the time-frames of same.

“Investing without goals is like going on a journey without a destination”

Following questions might help you to decide on the best mutual funds.

Have you exhausted your 80C limit for the current financial year?

Do you fall under the tax bracket of 20% or 30%? If you do, then it is a good chance you will be paying a good amount of income tax. You need to calculate how much taxable income you have. Under provisions of 80C, you can reduce your taxable income by ₹1.5lakh. If you invest ₹1.5 lakh in tax saving instruments, you can save up to ₹45,000 in taxes. And the money saved is equal to money earned. So evaluate your tax saving investments.

Best Mutual Fund ELSS schemes :

Fund Net Assets (₹ Cr.) Expense Ratio 3-M (%) 1-Y (%) 3-Y (%) 5-Y (%)
Aditya Birla Sun Life Tax Relief 96 – Direct Plan 8,599 1.05 5.34 2.4 15.65 19.68
DSP Tax Saver Fund-Direct Plan 5,413 0.91 7.61 5.28 15.86 18.44
Mirae Asset Tax Saver Fund-Direct Plan 1,839 0.73 7.11 10.42 23.00
Axis Long Term Equity Fund-Direct Plan 18,852 0.84 6.85 5.51 15.47 19.66

Do you have your emergency fund?

Situations of emergency can arise at any time. Are you financially ready for such situations? Whether it is a job loss or health problems, you must keep some amount as an emergency fund. Ideally, the amount equivalent to six times your monthly expense is good enough for an emergency fund. And liquid funds are best to keep your emergency fund.

Best liquid fund schemes:

Fund Net Assets (₹ Cr.) Expense Ratio 1-M (%) 3-M (%) 1-Y (%)
Reliance Liquid Fund – Direct Plan 30,272 0.14 0.69 1.83 7.61
Aditya Birla Sun Life Liquid Fund – Direct Plan 42,721 0.15 0.68 1.82 7.56
Axis Liquid Fund – Direct Plan 21,028 0.11 0.70 7.11 10.42

Will you need invested money within the next three years?

If your investment horizon is short, it is better if you go with debt funds or hybrid funds. Reason being in short term equity funds might be risky. Again, it depends on your risk profile. If you are okay to bear a loss of 10% for a potential gain of 25%, you can choose among various equity funds as well. But if you like to play it safe, hybrid funds or debt funds are your best bets.

Best Hybrid Funds:

Fund Category Net Assets (₹ Cr.) 3-M (%) 1-Y (%) 3-Y (%) 5-Y (%)
Mirae Asset Hybrid Equity Fund-Direct Plan Hybrid: Aggressive 3226 7.04 12.40 16.69
ICICI Prudential Equity and Debt Fund-Direct Plan Hybrid: Aggressive 1992 5.68 7.54 15.57 16.95
ICICI Prudential Regular Savings Fund-Direct Plan Hybrid: Conservative 1,622 3.02 7.62 11.16 12.45
Aditya Birla Sun Life Balanced Advantage Fund-Direct Plan Hybrid: Dynamic Asset Allocation 2,905 4.01 6.61 12.50 13.08

Do you want to build wealth and keep invested for more than 5 years?

Talking about the best mutual funds, Equity is the best asset class for building wealth. And in long term risk in equity gets minimized. In equity mutual funds also one can invest in small cap, mid cap, large cap or multi-cap funds depending on the risk-taking ability of investor. Below are the best mutual funds in each of the category –

Fund Category Net Assets (₹ Cr.) 3-M (%) 1-Y (%) 3-Y (%) 5-Y (%)
Reliance Large Cap Fund-Direct Plan Equity: Large Cap 12,768 6.96 11.86 16.84 17.28
UTI Sensex Exchange Traded Fund Equity: Large Cap 4,278 8.33 15.85 16
Mirae Asset Emerging Bluechip Fund-Direct Plan Equity: Large & Mid Cap 7,162 7.88 8.98 21.63 26.73
L&T Midcap Fund-Direct Plan Equity: Mid Cap 4,390 3.30 -5.75 18.07 23.30
Mirae Asset India Equity Fund-Direct Plan Equity: Multi-Cap 11,893 7.81 12.21 18.76 19.59
HDFC Small Cap Fund-Direct Plan Equity: Small Cap 7,544 4.72 -2.49 20.81 21.55
SBI Small Cap Fund-Direct Plan Equity: Small Cap 1,891 5.49 -9.39 18.40 28.78
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