Tips To Remember While Invest in Mutual Funds
Equity Funds
They come with higher risks with potentially higher returns, subjectto the performance of the funds" underlying assets.
Debt Funds
These funds have relatively low risk with low returns, as the chance of a default is minimal.
Hybrid Funds
These funds have lower risks than equity-oriented mutual funds , but returns are suppressed because of the debt component.
Solution-Oriented Funds
It allocates funds to low-risk assets with the potential for decent return to help you build the desired retirement corpus.
Inflation
Inflation can erode your mutual fund returns.
MF Selection
Choose a solution-oriented mutual fund scheme or a regular MF plan, keeping your retirement goals in mind.
Prioritise Investments
As you get closer to retirement, gradually switch your investments from equities to debt-oriented funds
Consider Risks
Consider your risks and financial needs before choosing mutual fund schemes.
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