List of best mutual funds to invest in 2020

So what makes a great mutual fund? Meanwhile, the subset of stock index funds sported a median of 0. Some investors may also choose balanced funds that invest in a combination of these securities. Next, it’s natural to assess a mutual fund’s track record, and to favor those with strong average growth rates. With inflation low, interest rates falling, and recession around the corner, investors are wise to choose bond funds that are diversified:.

See the Best Funds to End this Decade

Never miss a great news story! Get instant notifications from Economic Times Allow Not. All rights reserved. For reprint rights: Times Syndication Service. Choose invset reason below and click on the Report button. This will alert our moderators to take action. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.

What’s best for you?

The best mutual funds to buy for and will include a diverse range of categories ideal for volatility and a weakening economy. With a long-term investing philosophy in mind, we can determine which are the best mutual funds to buy and hold for the next few years and beyond. When choosing the best funds to buy, no matter the duration of the holding period, investors are smart to choose among the best low-cost, no-load funds. This is because keeping costs low is a fundamental aspect of producing higher returns, especially in the long run. With a recession possible in or in , it’s also wise for investors to plan for weakening economic conditions. This calls for a well-diversified portfolio, consisting of funds that avoid high risk areas of the market, such as small-cap stocks and emerging markets, and concentrate more on lower-risk areas, such as high-quality, large-cap U. Some investors may also choose balanced funds that invest in a combination of these securities.

How to Use Our Best Mutual Funds List

Never miss a great news story! Get besr notifications from Economic Times Allow Not. All invsst reserved. For reprint rights: Times On Service. Choose your reason below and click on the Report button.

This will alert our moderators to take action. Get instant notifications from Economic Times Allow Not lixt You can switch off notifications anytime using browser settings. MF News.

Learn Ask the expert Fund Basics. Page Industries. Market Watch. Pinterest Reddit. Getty Images. The outlook next year for these investors is a mixed bag, depending on the tax bracket and risk profile of the investor.

The middle-class investor Investors in lower tax brackets are spoilt for choice. Post Office deposits offer 7. Risk-free investments, like overnight tunds of mutual funds, fknds returns of about 4.

Banking and PSU debt funds yield around 6. Though such debt mutual fund investments are tax-efficient, they are not tax-free. Public-sector tax-free bonds have poor liquidity for both purchase and sale.

The yields, depending on daily vagaries of the market, can vary between 5. Brokerage can further dilute the return. To juice up returns, investors need to take either duration risk or credit risk.

Duration risk Higher the duration mutula a bond, the more susceptible it is to interest rate movements. Markets are notoriously difficult to predict. Credit risk The time to buy is when there is blood in the streets or in other words, when the prices are beaten down is an old saying attributed to Baron Rothschild.

Credit Risk funds are an offering in the debt mutual fund category that invest in lower-rated securities. This would be akin to contrarian investing in the equity segment. The NBFC crisis has left many credit risk funds bleeding. There are yet 2200 who do not have any securities in the default category, but there is no assurance these will not default in future. Clearly list of best mutual funds to invest in 2020 risk funds are not for the faint-hearted; many of the names in their portfolio will make conservative investors shudder.

What can investors do? Fixed income investors in the higher tax brackets can spread their portfolio across mufual credit spectrum, from the least risky overnight funds yielding about 4. Investors need to be cognizant of the prospect of losses in credit risk funds, as the name of the schemes imply.

Arbitrage funds, potential tax-free play up to Rs 1 lakh Arbitrage funds offer relative safety while being highly tax efficient. They carry the same tax treatment as equity-oriented list of best mutual funds to invest in 2020. Long term capital gains in equity investments up to Rs 1 lakh is tax invvest. This provides an mutuap play. An investor who either does not invest in stocks, or does not intend to book capital gains, can invest a maximum of about Rs 15 lakh before 31st March, in arbitrage funds, and redeem the investment before 31st March, after holding for one year, booking tax-free returns of about Rs 1 lakh.

This strategy can be repeated year after year, unless the tax laws change! What is the risk in arbitrage funds? Until now they have turned out to be safe, with fixed income like returns. But mutual fund investments are, in general, subject to market risk. The caveat holds true here as. The author is an expert in corporate mutusl and fixed income investing. Disclaimer: The opinions expressed in this column are that of the writer.

The facts and opinions expressed here do not reflect the views of www. Planning to invest in mutual funds to build a retirement corpus? Here is what you should know. Read more on Best Mutual Funds for Debt Mutual Funds. Mutual Fund News. Arbitrage funds. Long Duration Funds. Follow us on. Download et app. Become a member. Mail This Article. My Saved Articles Sign in Sign up.

Find this comment offensive? This will alert our moderators to take action Name Reason for reporting: Foul language Slanderous Inciting hatred against a certain community Others. Your Reason has been Reported to the admin. To see your saved stories, click on link hightlighted in bold. Fill in your details: Will be displayed Will not be funcs Will be displayed.

Invext this Comment: Post to Twitter.

Active funds vs. passive funds

As a result, the core of our list are broad-based index funds from trusted providers like Vanguard and Charles Schwab. Picking the right mutual fund is an important financial decision. You’ll find some top index funds listed, as. Image source: Getty Images. You could do very well to own only. With a long-term investing philosophy in mind, we can determine which are the best mutual funds to buy and hold for the next few years and. That’s an actively managed fund. Under no circumstances does this information represent a recommendation to buy or sell securities. Instead, it’s smart to stay in stocks but just tap down the risk a bit by investing in defensive areas like consumer staples, which are companies that sell products and services that consumers still need, regardless of economic conditions. Here are some of the best to consider for through Ideally, they will impress you with their candor and you’ll like their investing philosophy and approach. The fund manager, John Hussman, is known for predicting the market downturn and for creating a balance of assets to average inflation-beating returns while minimizing losses during market corrections. Well, several things. A passively managed one, on the other hand, requires far less brain power to run. Mutual Funds Best Mutual Funds. Mutual funds can save you from spending lots of time and energy studying many companies and managing investments in various stocks, but you do still need to spend a little time making sure you’re investing in good mutual funds. It’s well worth looking into the managers of any managed mutual fund you’re considering.