Mutual funds are one of the best investment instruments which enable even the small retail investors to invest and plan for their future goals. The needs of different investors vary from each other. All the investors do not have the same risk appetite, time horizon, goals and income needs.
Hence, to serve the needs of the investors there are various schemes which an investor may choose based on his/her requirement. Understand this with the help of an example.
Suppose a person who needs to reach Chandigarh will board the flight to Chandigarh while a person who needs to reach Mumbai will board the respective flight to Mumbai.
Similar is the concept of mutual funds wherein the flight is a scheme and the destination is the investors’ future goal. Each and every scheme has an investment objective that should be looked upon by an investor to measure its suitability.
Further Reading: What is Mutual Fund
There are plenty of equity schemes, debt schemes and hybrid schemes offered by various fund houses that an investor may select based on his/her needs.
There are mutual funds schemes in which an investor can park their funds even for a single day or for as long as they want. It doesn’t matter whether an investor is conservative or aggressive; selection of the right scheme is all that matters.
There are a plethora of mutual fund schemes that are efficient in accomplishing investors’ future objectives. For a detailed explanation of all the mutual schemes you can click on the link below:-