Ask ET Mutual Funds: What types of mutual funds should I consider?

I want to invest Rs 5,000-7,500 every month in mutual funds. I am 26 years old. What are the types of mutual funds I should be looking at?
--MV Aravindh

First, list your various financial goals. This will help you to identify the ideal investment vehicle to achieve those goals. For example, if your goals should be met within a few years, you should invest in bank deposits and debt mutual funds. You should invest in equity mutual funds to achieve your long-term financial goals.

The rationale behind these choices is simple: when you are investing for the short term, you can’t afford to take any risk. That is why you should opt for safer options. However, when it comes to investing for a long term, time is on your side. That means you can afford to take some risk and earn extra returns.


Here are some useful links:
Know your debt mutual fund schemes better
Get to know your equity mutual funds better

Message us if you still have any queries.

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