The ongoing war between iran and israel is also affecting the stock market and mutual funds. In such a situation, if you want to invest in a mutual fund at this time, then this news is of use to you. In fact, due to Iran-Israel tension and US President Donald Trump's tariff policy and increasing geopolitical tensions in the world, the indian stock market is witnessing a lot of volatility these days. Also, the valuation of stocks is also a cause of concern. In such an environment, it would not be wise to invest in all equity mutual funds. It is important to choose funds wisely that can perform better in this environment. So let us 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 of the country. These companies are financially strong, their management is better and their hold in the market is strong. When there is instability in the market, large cap funds become a safe option. If you want stable and reliable returns and have an investment plan of three years or more, then these funds are right for you.
Value funds, strong stocks at cheap rates
Value funds invest in companies whose current market price is less than their real value, that is, they are undervalued. These companies have strong fundamentals and the possibility of better growth in the future. Keep a time horizon of 5 years or more for investing in these funds. When the market falls, they fall less than midcap and smallcap and can also give good returns in a bull run.
Flexi cap funds, freedom to invest in companies of all sizes
The investment model of flexi cap funds is very flexible. They invest in largecap, midcap and smallcap - all. The fund manager can change the portfolio according to the market. If the market falls, they can maintain stability by investing more money in large caps and if the market rises, better returns can be obtained by investing in midcaps and small caps. These funds can be a good option for investors with a time horizon of 5 years..jpg)
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