First, if you are new to mutual funds and investing, you must seek the help of a mutual fund advisor before proceeding. It is not easy to manage money on your own. New investors often need a lot of hand-holding and reassurances in initial phase of their investment journey. So, it would be a better idea to hire a reliable advisor with reference from your friends and family.
ETMutualFunds.com always ask its readers to adopt goal-based investments. Identify your financial goals, quantify them, and find out how much you need to invest every month to achieve them. Next, based on your investment horizon, and risk profile, you should choose mutual fund schemes suitable to you.
For example, if you have a short-term goal that needs to be met withing two years, you should invest money in a bank deposit or debt mutual fund. If you want to invest in debt mutual funds, you should opt for short duration or short term debt mutual fund scheme. If you are investing for a long-term goal that is 10 years away, you should consider investing in equity mutual funds. Further, if your risk profile is conservative, you should choose a large cap mutual fund scheme. if you are an aggressive investor with a large risk appetite, you may choose a mid cap mutual fund.
You may discuss your financial details and goals with your investment advisor and zero in on the mutual funds.