Smart Investments: Top Mutual Fund Categories to Invest in 2025
Most mutual fund investors consider that the new year is a great time to start their investment plan for the year 2025. Most of the inexperienced investors who start their investment journey are confused about which mutual fund they should invest in. Mutual fund advisers believe that some mutual fund categories will gain attention this year.
In debt funds, dynamic bond funds and gilt funds are likely to perform well. Equity-oriented hybrid funds and multi-asset allocation funds are also likely to see increased focus. Apart from this, gold and silver funds may attract those investors who are seeking a safe investment option.
A tax professional said, “In 2025, mutual fund categories are expected to obtain focus, including dynamic bond and gilt funds in debt that are improving from potential rate cuts and constant returns.”
In equities, hybrid funds provide a balance in growth and stability and are likely to be popular. At the same time, gold and silver funds are likely to draw attention as safe investment options. Multi-asset allocation funds, which spread investments in stocks, bonds, and commodities, are expected to be more popular.”
In 2025, mutual fund advisers suggest to investors where they should invest in the current market and what allocation they need to make in their portfolios. So they classified the investors into three different risk profiles: conservative, moderate, and aggressive.
Conservative Mutual Fund Investors
The conservative investors have risk tolerance in the range of low to moderate. A mutual fund adviser suggests focusing on a balanced strategy that protects your capital while focusing on constant growth. For short-term investments, low-risk investments are best, and for a long-term goal, a mix of debt and equity investments is a better option.
Moderate Mutual Fund Investors
Moderate investors are looking for a balance between stability and growth, adjusting their investments based on how long they plan to invest. A mutual fund adviser suggests that short-term debt instruments like FDs, short-term debt funds, and government bonds are ideal, and for medium to long-term investments, it’s a good idea to split your portfolio between equity and safer options like debt.
Aggressive Mutual Fund Investors
An aggressive investor is willing to take more risk in order to potentially earn higher returns. A mutual fund adviser suggests 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.
