How do I know which fund is right for me?

How do I know which fund is right for me?

Once an investor has decided to invest in Mutual Funds, he has to make a decision of which scheme to invest in– Fixed Income Fund, Equity Fund or Balanced and which Asset Management Company (AMC) to invest with?

First, discuss freely with a mutual fund distributor/investment advisor what your objective is, what time period you’re comfortable with, and what your risk appetite is.

Decisions on which fund to invest in would be made based on this information.

  1. If you have a long term objective – say, retirement planning, and are willing to assume some risk, then an Equity or Balanced Fund would be ideal.
  2. If you have a very short term objective – say, money to be kept aside for a couple of months; a Liquid Fund would
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