Best mutual funds to invest in 2018
At MobiKwik, we apply big-data science and analysis to come up with a short list of funds that can help you narrow down your investment choices from the hundreds of mutual funds available. We receive no commissions or kick-backs from Mutual Fund Companies for our recommendations — so you can be sure that our advice is honest — and in your best interest.
Equity Large Cap
Large cap diversified funds should form the core of your investment holdings.
Equity Flexi Cap
These funds are not biased towards either large- or mid-cap stocks but select stocks in their portfolio wherever they see investment opportunities.
Equity Small & Mid-Cap
Small and mid-cap focused funds are more volatile, but can often help boost overall returns of your portfolio. These are suitable for investors who have the ability to take on higher risk of losses.
Tax Saving Equity Funds (ELSS):
In order to reduce your tax bill, you can invest up to Rs 150,000 a year in Tax Saving (ELSS) funds under section 80C of the Income-tax Act.
Invest in treasury bills, call money, etc with maturity up to 91 days. Generally considered tax efficient alternative to a savings bank account.
Ultra-Short Duration Debt Funds
Invest in high quality bonds with maturities of 3–6 months. Good alternative to bank fixed deposits of similar maturity.
Low Duration Debt Funds
Invest in high quality bonds with maturities of 6–12 months. Good alternative to bank fixed deposits of similar maturity.
Medium Duration Debt Funds
Invest in bonds with maturities of 3–4 years. Medium sensitivity to interest rate changes. These schemes were earlier classified as Short-term Bond funds.
Medium to Long Duration Debt Funds
Invest in bonds with maturities of 4–7 years. Highly sensitive to interest rate changes. These schemes were earlier classified under Intermediate Bond funds.
(Note: Debt funds with maturity > 3 years are only suitable for investors with large risk appetites and the ability to weather significant volatility in returns)