Start with the goal, not the fund. A house deposit in three years, a child's education in twelve, retirement in thirty: each has a date, and the date decides how much swing you can afford along the way.
Money needed within three years belongs in debt and liquid funds, where a bad year costs you a little, not a lot. Money needed in three to seven years suits hybrids. Money needed in seven years or more can sit mostly in equity, because it has time to recover from any fall.
One portfolio, several goals, each with its own mix. That is why a single "best fund" question has no answer. The best fund for your retirement is the wrong fund for next year's wedding.
Buzz Bite
The date you need the money decides the fund, before anything else does.
In this Flight
- Matching Funds to Financial Goals
- SIP vs Lump Sum
- Growth vs IDCW
- How to Read a Fund Factsheet
- What Makes a Good Mutual Fund?
- Understanding Fund Ratings