Stock market and mutual funds are also being affected by the ongoing war between Iran and Israel. In such a situation, if you want to invest in a mutual fund at this time, then this news is of your use.
In fact, due to Iran-Israel tension and US President Donald Trump’s tariff policy and increasing geopolitical tension in the world, the Indian stock market is seeing a lot of ups and downs these days. Also, the valuation of stocks is also a cause of concern.
In such an environment, it would not be prudent to invest in all equity mutual funds. It is important that such funds should be selected by thoughtfully which can perform better in this environment. So let’s know which mutual fund categories can be trusted in 2025.
Large cap funds, reliable and stable investment
Large cap funds invest in the top 100 companies in the country. These companies are financially strong, their management is better and their grip in the market is strong. When there is instability in the market, large cap funds become a safe option. If you want a stable and reliable return and have an investment plan of three years or more, then these funds are right for you.
Value funds, cheap strong stocks
Value funds invest in companies whose existing market price is less than their real price i.e. underwellood. These companies are prone to strong fundamentals and better growth in future. For investing in these funds, keep a deadline of 5 years or more. When the market falls, they fall less than midcap and smallcap and can also give good returns in bull run.
Flexi cap funds, rebate for investment in companies of every size
The investment model of flexi cap funds is very flexible. They invest in largecap, midcap and smallcap – all. Fund managers can change the portfolio according to the market.
If the market falls, they can maintain stability by investing more money in largecap and if the market climbs, then investment in midcap and smallcap can give better returns. These funds can be a good option for investors with a 5 -year deadline.
Egressive hybrid funds, equity and date balance
If you want to have a risk and also maintain a little balance, then aggressive hybrid funds will be right for you. These funds invest in equity from 65 per cent to 85 per cent in equity and remaining parts.
The date part balances the portfolio at the time of market fluctuations. Date funds perform well when interest rates decrease. This is a great option for medium -risk investors investing for 3 to 5 years.
Multi asset allocation funds, three benefits in one
These funds invest in at least three asset classes, equity, date and gold. Many funds also invest in Silver, Real Estate Investment Trusts, Invits, and International Equity. These funds have low correlation of asset classes, which reduces the risk and keeps the portfolio balanced. This is an excellent option for investors with 3 to 5 years of attitude and slightly higher risk.
Choosing mutual funds wisely
In 2025, investors also have opportunities and challenges. In such a situation, instead of just looking at returns, it is necessary to choose mutual funds keeping in mind the purpose of investment, deadline and risk to tolerate risk. From large caps to multi asset funds, every category has good options, just the right plan and patience.
Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.
Also read: how will gold be more expensive now, will Iran-Israel’s battle really take Gold to the seventh sky