Investment Planning

Investors with lower inclination towards risk can look at hybrid funds to invest in a suitable combination of primary asset classes (equity and debt). Investors with a shorter investment horizon can look at debt mutual funds across categories based on the time horizon.

Investors can use the systematic feature of mutual funds to achieve their goals:

SIP - Systematic investment plans (SIPs) offered by mutual funds help to stay invested over the long term; you not only gain from the high return potential of equity markets but also ward off risks associated with the asset class. You invest a fixed sum of money at regular intervals. Although the investment goes through multiple market cycles, SIPs help you to reap the benefits through 'Rupee Cost Averaging', i.e., buying more mutual fund units when the net asset value (NAV) is low and buying fewer units when the NAV is high. Also, in most cases, you can fix the SIP amount according to your pocket. This feature is ideal for investors who are planning in the long term for their child and thus can derive the best benefit from equities.