January 28 2019
After an eventful and difficult 2018, the year 2019 has started on a cautious note with upcoming general elections in the country and uncertainties in the global markets due to US-China trade war, oil price, currency fluctuation and fear of economic slowdown.
Stock markets are expected to remain volatile in 2019 and investorsshall do well with a cautious approach while investing.
To reduce volatility in investments and to generate consistent returns, the best mutual fund categories to invest in 2019 are debt funds, balanced (hybrid) funds and large cap oriented multi-cap funds. After a comprehensive study of market valuations and various fund categories, Investguru short lists following funds which the investors should consider for investment in year 2019.
1.Debt funds are suitable for short duration(1-3 years) investments and to generate safer and consistent returns. In the debt category, the best mutual funds to invest in 2019 are:
| Performance | |||
| Fund Name | 1 Year(%) | 3 Year(%) | 5 Year(%) |
|---|---|---|---|
| Franklin India Ultra Short-Term Fund | 9.05 | 8.95 | 9.29 |
| Axis Strategic Bond Fund | 6.77 | 8.59 | 9.25 |
| HDFC Short Term Debt Fund | 7.11 | 7.61 | 8.33 |
*Compounded Analysed as on 24/01/2019
2.Balanced (Hybrid) funds are best suited to generate inflation beating returns over 3 years and more with moderate volatility. Balanced funds invest 30-35% money in debt instruments and 65-70% in equities. In balanced category, the best mutual funds to invest in 2019 are:
| Performance | |||
| Fund Name | 3 Year(%) | 5 Year(%) | 7 Year(%) |
|---|---|---|---|
| Mirae Asset Hybrid Equity Fund | 13.65 | N/A | N/A |
| SBI Equity Hybrid Fund | 11.13 | 15.13 | 15.95 |
| ICICI Prudential Balance Advantage Fund | 10.82 | 12.51 | 14.01 |
*Compounded Analysed as on 25/01/2019
3.Multicap funds which primarily invest in large size companies are suitable for growth over 5 year and more. In current scenario, investors may invest in these funds for moderate volatility and high growth over long term. In multicaps, the best mutual funds to invest in 2019 are:
| Performance | |||
| Fund Name | 3 Year(%) | 5 Year(%) | 7 Year(%) |
|---|---|---|---|
| Mirae Asset India Equity Fund | 16.71 | 18.71 | 17.65 |
| SBI Multicap Fund | 13.58 | 18.72 | 17.24 |
| Kotak Standard Multicap Fund | 15.69 | 18.84 | 17.44 |
*Compounded Analysed as on 25/01/2019
With a mix of investments in the above categories of funds, we believe investors shall have positive experience with mutual funds in 2019 and shall also be able to generate attractive returns over long term.
We recommend you to discuss your investment plans with your financial advisor or consult your Personal Investguru Advisor@9910423232 before making an investment decision.
Happy Investing!
Tulika Agarwal
Co-Founder, Investguru