High return, low risk mutual funds for a new investor
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If you are new to mutual funds and do not understand much about investing or mutual funds, you should consult a mutual fund advisor (or financial planner if you want a proper financial plan) before proceeding further. New investor often tends to get nervous and make mistakes during bad phases in the market in their initial years. That is why it is better to start with a professional help and take things into your hand after a couple of years and learning the ropes.
Here are a few pointers you should keep in mind. You should always choose your mutual funds based on your financial goals, investment horizon, and risk profile. As a rule, always opt for debt mutual funds to achieve your short-term goals of less than three years. For long-term goals, you can consider investing in equity mutual fund schemes.
It is extremely important to choose a debt scheme that matches your investment horizon. For example, you should choose a liquid mutual fund scheme if you are looking to park money for a few days. If you are investing for a few months, you should choose an ultra short duration scheme. For a few years, you may choose a short term debt scheme.
When you are choosing an equity scheme pay attention to your risk profile. For example, if you are a conservative investor, choose a large cap mutual fund scheme or an aggressive hybrid scheme. If you have a moderate risk appetite, opt for a multi cap scheme. If you are aggressive investor, you may consider investing in mid cap and small cap mutual fund schemes.