FY 2018-19 Special: What Are the Best Funds to Start New Investments?

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Now that the march has finally waved goodbye to the year 2018 and the financial year has come to an end, the time is highly demanding us to think about ‘what’s next.’

So much has happened last year considering the financial world alone, that it is worth to reflect on the period first which we’ve had. From the fact that the Sensex has reached its all-time highs, thus making India the world’s fastest-growing major economy to re-introduction of LTCG tax which was indeed a dampener, we have had a roller-coaster of a year in financial terms.

Well, let’s close the chapter as it is often said, “All is well that ends well.” Moving on, we know all of you who are landing here in search of the best recommendations are actually seeking early-bird advantage of investing. And, as a matter of fact, we have talked a lot about the pros of starting early and diversifying investments, they cannot be emphasized enough.

We’ll begin this blog by classifying and talking about the two general types of investors. Read & know which category do you fall in and what all you can do in the new financial year to ensure that the rest of the year goes off smoothly.

1. The Newbies 
   These are the ones who have just decided to make an investment in mutual fund. In case you fall into this category, we appreciate that you people have finally decided to step out of your shell and make a move into the world of possibilities. Seeing the steady growth and profits throughout the last year, and also because the investors haven’t faced any major costs, like volatility or market correction, it’s a good time to enter the market. Here, with mutual fund investments, you will be able to experience new developments in your life.
   
   What Should be Done?
   
   Just analyze the three simple parameters before vesting your money in any instrument. These include- Goal, Tenure, and Risk Profile.
   
   The process of initiating investments in mutual funds is simple where you need to be goal-oriented at first. This is where you need to associate your investment with one of the goals, which can be retirement planning, child marriage or education, simply wealth creation, or any other.
   
   In the second step, you need to define the tenure for which you wish to keep your investment. This is also a broader part where you specify your financial objectives more precisely. Now, in the final step, analyze your risk profile. As we all are aware of the fact that market can experience volatility, thus consider only those investment options which can help you reach your destination by traveling a less risky way.
   
   Voilà! You’re all set to invest.
2. Seasoned Investors 
   These investors are the ones who have an inquisitive mind, a long-term perspective, perseverance, and good savings habit. If you belong to this group, then it’s time to perform the three significant steps.
   1. Review Your Investments and Goals 
      Your past investments could have underperformed, or the target prices may have moved up. For instance, if you were planning to purchase a car, prices may have surged up. So, it’s high time to review your goals and check if your investments are in-line with your goals. In case you feel that there's a gap, invest more to cover it up.
   2. Re-balance Your Portfolio 
      The equity market is facing a correction phase considering the recent time. This means the asset allocation of your portfolio would have changed. To reset it to your desired allocation again, you can prefer buying some good equity stocks in the dip. It’s a proven fact that investors who periodically rebalance their portfolios get better returns than those who don't.
   3. Make New Investments 
      To avoid last-minute tax planning, start your ELSS investment right from April. As you know that it qualifies for deductions up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act of India, 1961. Doing this will help you to be prepared well in advance for the next financial year.
      
      You can even plan a new SIP investment or increase the amount of your current SIP. Considering the fact that it’s the time for annual increments. Thus, you must not let the lifestyle inflation eat away at your salary hike. As the take-home pay increases, very few of us manage to control our wallet strings when we have money to spend. But when your income rises, your investments should also rise. If you have a SIP running, it is time to increase the investment amount by about 15% or a little less so that your overall savings also get boosted up.

Now that you know what should be done, let’s emphasize where it should be done.

List of Recommendations on MF Investment for the FY 2018-19

Considering the varying investment objectives and risk-taking capacity of different investors, we have tried categorizing our today’s suggestions into three segments:

1. Equity Funds 
   
2. Balanced Funds 
   
3. Debt Funds 
   

We hope now you are acquainted with the investment options where you can stow your money in the hope of good returns. We have just welcomed the new financial year, so it’s important to make sure that we carve out some time to evaluate our current financial situation. There were several events from the last year that provided us with valuable teachings that can help us prepare for the long road ahead. Make sure you remember them and invest in a suitable option.

For a personalized recommendation, you can connect with our experts who are ready to serve with all their might.