What are mutual funds?
A mutual fund collects money from the investor and invest it on their behalf and charge a small fee, mutual funds are really beneficial for people don’t know much about investing and as well as for those who know. Investor can chose optimum scheme according to their financial condition and investing to achieve their desired goal.
How to invest:
One can invest in mutual funds in two ways either directly or through a mutual fund advisor. Directly you can invest in the direct plan of the scheme. If you are investing through an advisor or intermediate, you will invest in the regular plan of the scheme. The advantage of investing directly is that you save the commission.
The biggest drawback of this method is that you have to complete the formalities, do the research and monitor your investments by your own.
If you are looking for the best mutual funds to invest in, then have a look.
The best mutual funds to invest in 2018
If you invest in something it should be the best.Here is the list of recommended mutual funds to invest in 2018.
Types of mutual funds:
- Equity mutual funds.
- Tax saving funds.
- Short term.
- Emergency funds.
Equity mutual funds:
To beat inflation invest your money in equity mutual funds (long term savings)
The equity mutual fund we recommend for 2018
- SBI Blue Chip Fund (G)
- L&T India Value Fund (G)
- Mirae Asset India Opportunities Fund (G)
- Reliance Vision Fund (G)
Tax saving funds to claim tax exemption under Section 80C:
Taxes saving (ELSS) funds are the best way to save tax and invest for long term. We recommend:
- L&T Tax Advantage Fund (G)
- DSP Blackrock Tax Saver Fund (G)
Short term money needs:
Debt funds provide better return after taxes are taken into account, it is an alternative to bank FDs, we recommend:
- Birla Sun Life Dynamic Bond Fund – Retail (G)
- Axis Liquid Fund (G)
- SBI Ultra Short Term Debt Fund (G)
Money you may need quick access to, you can withdraw your money any time day or night even on weekends and you can create your emergency fund through:
- Reliance Money Manager Fund (G)
These are some good schemes you can invest this year.