Diwali is more than just a light festival. It is also seen to be a good time to invest during this event. Mutual funds are available in a variety of formats and sizes. You can invest in them based on your financial objectives.
Here is a selection of mutual funds that can help you not only achieve your financial objectives but also generate wealth:-
- Liquid Fund: If you enjoy watching your savings account grow, Liquid Fund is the fund for you. It’s perfect for securing short-term funds. It has a better rate of return than a savings account. You can even convert your investments to shares if the time arises.
- Debt Fund: Debt should be a part of your portfolio regardless of your investing preferences. It offers stability against market volatility. Long-term capital gains with indexation advantage are available to individuals who retain it for three years.
- Aggressive Hybrid Funds: As the name implies, hybrid funds invest in both equities and debt. It’s the ideal balance of security and advancement. It is also great for beginning investors because it qualifies for equity taxes.
- Large Cap Funds (Equities): These are your best choice if you want to invest in equities and want your money to increase consistently. Large Cap Funds are less volatile than their Midcap and Small Cap counterparts.
- Mid Cap (Equity) Funds: These are a little riskier but they have the potential to generate above-average returns. These accounts are your best choice if you want to put money toward your child’s education or a down payment on a home.
- Small Cap Funds: If you want to take chances, these are the funds for you. These funds are extremely volatile, yet they have the potential to provide exceptional long-term returns. Investors should only invest in them in small amounts.
- Equity Multi-Cap Funds: Multi-cap funds are your best pick if you want a taste of Large cap, Midcap, and Small cap stocks. Multi-cap funds are more adaptable. These are long-term wealth builders.
- International Funds: If you’ve always wanted to hold blue-chip stocks like Amazon, Facebook, Netflix, or Apple but haven’t been able to due to territorial restrictions, international funds are the way to go. They diversify your portfolio and also protect you against local volatility.
- ELSS Funds: These are a must-have in any investor’s portfolio. These funds are suitable for taking advantage of the Income Tax Act of 1961’s Section 80C advantages. In terms of tax-saving measures, they have the shortest lock-in time.
The world of mutual funds is wide. Before making any investment decisions, it is always essential to get the advice of a certified financial planner.
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