I am 30. I want to know whether I should just look at some good mutual fund for retirement planning or invest in some scheme which will give fixed returns. Which is better?
- Gaurav Pathak
It is always better to invest in equity mutual fund scheme to achieve your long-term financial goals, as equity has the potential to offer superior returns over a long period of time. It is very difficult to earn anything substantial over inflation by investing in fixed income instruments.
We typically recommend balanced schemes to first-time investors in equity. This is because we have noticed that many newcomers to the stock market tend to panic when they see the value of their investment fall drastically during a bad market phase. Balanced funds address this problem to a great extent. Since these funds invest in a mix of equity and debt, they don't fall as drastically as pure equity schemes during a bad phase in the market. The debt part of the portfolio softens the blow during difficult phases.
Here is our list of best balanced schemes: Click Here
This article was originally published on October 08, 2015.
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