Kaunsa Mutual Fund Sahi Hai?

Know thyself. This is the first step to picking the right fund. Different funds suit different categories of investors. At a very basic level, high growth-high risk equity funds suit investors who have the ability to take risks whilst debt funds are meant for more conservative investors. Time horizon is another primary determinant of fund selection. Equity funds usually work for time-frames of five years or more, while debt funds are good for shorter periods. Many more investor characteristics come into play. Your tax bracket, residential status, other investments, goals and expenses - all have a bearing on fund selection.

This article was originally published on June 15, 2017.