10 Best-Performing Mutual Funds for Investment in January 2025
Most of the mutual fund investors are searching for the best mutual funds to start their investment journey to create wealth in 2025. However, there is no guarantee that the results will suit everyone’s individual needs.
How to Select a Mutual Fund?
Most of the best mutual funds may be selected on the basis of long-term or short-term performances. An investor can’t start investing on the basis of past performance alone.
Aggressive Hybrid Schemes
An aggressive mutual fund investor is ready to take more risk in order to earn higher returns. A mutual fund adviser recommends that for long-term investment, you can consider investing most of your money in stocks by following a 60:20:20 rule. This means 60% in large companies, 20% in mid-sized companies, and 20% in smaller companies. These schemes invest in equity 65-80% and debt 20-35%. They are ideal for conservative investors.
Investors can start their investment by investing in these mutual fund schemes:
Large-Cap funds
The large funds invest in the top 100 companies by market capitalisation. The scheme is beneficial if you want to grow wealth without taking any risk or volatility.
Flexi-Cap Funds
It is a type of equity mutual fund that invests in different market capitalizations, which include large-cap, mid-cap, and small-cap funds.
These schemes are suggested to moderate investors. Flexi-cap schemes invest across market capitalisations and sectors.
Mid-Cap Funds
This scheme is also an equity mutual fund and invests in mid-sized companies. They can be risky and volatile but have the potential to provide higher returns.
Small-Cap Schemes
Small-cap funds are a type of mutual fund that invests in small-size companies. The schemes are suggested only for those individuals who can afford to take very high risk and volatility. They also should have a long investment horizon.
There are many mutual fund schemes that are based on their short-term performance. Sometimes, schemes from the same category may top the list because that category is currently popular.
Investors need to focus on their financial goals when choosing mutual funds. It’s important to select funds that match your investment goals, the time you plan to stay invested (investment horizon), and how much risk you’re comfortable taking (risk profile). This will help to ensure that your investments align with your needs and work toward achieving your goals.
