The fund is suitable for those who are looking to park their surplus funds for a short period of time Investors having a short-term investment horizon. Moderate investors who like taking limited risks and expect moderate returns Debt funds are also suitable if the stock market is highly volatile and is falling

Risk-averse investors who donРІР‚в„ўt want to lose their invested capital and who donРІР‚в„ўt mind lower returns. Risk-loving investors who are looking to save tax Equity funds make sense for young investors who have longer investment horizons and can afford to take risks Risk-loving investors who donРІР‚в„ўt mind taking risks and those who are looking for high returns. Suitability of different funds to different types of investors Returns are low but higher than those promised by a bank savings account. These funds are suitable for parking surplus cash. Liquid mutual funds are a type of debt funds which promise instant liquidity. Balanced funds provide moderate returns and the investment risk is also moderate as equity and debt balance each other out. Alternatively, in debt-oriented balanced funds, 65% is invested in debt and the remaining in equity. About 60% to 65% of the fund is invested in equity and the remaining in debt. Debt funds are also not affected by market volatility and provide good returns, compared to equity, in a falling market.Р”В«alanced funds combine equity and debt investments. Since the portfolio is invested in fixed income instruments, debt funds have very low risks and the returns are also low. Debt funds invest at least 65% of their assets into fixed income earning instruments. While on one end of the spectrum lie equity funds on the other end lie debt funds. Risk is high because it is an equity scheme and so are the returns. Investments done in ELSS schemes cannot be redeemed before the completion of 3 years. Moreover, ELSS investments also have a lock-in period of 3 years. Investments in the ELSS funds are allowed as a tax-free deduction under Section 80C up to a maximum of INR 1.5 lakhs. On the other hand, equity funds promise very good returns.Р”В®LSS is a type of equity mutual funds only but it is listed independently because of the distinct tax advantages the fund has. If the market rises, the returns are good and if the market falls drastically, investors might also lose money. Equity mutual funds carry very high investment risks because the equity market is volatile. At least 65% of the schemeРІР‚в„ўs portfolio is invested in equity and equity oriented securities. These are, perhaps, the most popular scheme of mutual funds which invest in the equity market. Here are some of the most popular types of mutual fund schemes and an analysis of which scheme suits which type of investor РІР‚вЂњ Mutual funds are designed in different types so that they can fulfill the investment needs of different investors and so, choosing the best mutual fund should be done after careful consideration. With so many options available, who can blame them! However, when investing in a mutual fund scheme, the risk profile and suitability should be judged so that the fund performs as per your expectations. Mutual funds come in many different variants and when it comes to choosing the best fund, investors are often confused. Given these benefits and the potential of attractive returns, investors choose to invest their disposable savings in mutual funds. They allow investors market-linked returns, diversified risks through asset allocation, affordability through SIPs and ease of liquidity. Mutual funds have become a very popular avenue for investment for many investors because of the benefits that they have.

Best performing mutual funds 2019