I am 29 years old and I want to invest in mutual funds. Which mutual fund will give me risk-free benefits and good returns? -Khush Shah
Mutual funds do not offer assured returns. There is an element of risk in mutual funds. Debt mutual funds are less riskier than equity mutual funds. However, even the safest debt funds like overnight funds and liquid funds have some element of risk. Mutual funds invest in debt or stocks. The performance of investments determines the risk you may get.
You should invest in debt funds to take care of your short-term goals that need to be achieved within five years. For long-term goals, you can invest in equity mutual funds. However, it is important to select a mutual fund scheme based on your investment horizon and risk profile.
If you don’t understand much about investing in mutual funds, you should seek the help of a reliable mutual fund advisor. However, you should educate yourself about mutual funds so that you can understand what the advisor is telling you.
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