Mutual funds are arguably the best investment options available for investors in terms of ease of investments and different risk/return paradigms available. Depending upon your risk profile and longevity of holding period, you can chose between various debt, equity and balanced funds.
However, “choose the fund that best suits your time-frame and risk appetite. Remember that equity funds require a holding period of at least 5 years, balanced funds need 3-4 years, and debt funds 2-3 years,” says Bhavana Acharya, Analyst–Mutual Fund Research, FundsIndia.com.
