Exciting mutual fund investment plans for you
Mutual fund investment plans
At retirement, people should make the best use of their retirement corpus so that they can invest wisely, get reasonably good returns, and yet remain tax-free. But, investment along with a steady income is the biggest challenge faced by most of the people. One of the best options for a retired person is investing in mutual funds. In this article, we suggest some mutual funds that are good to invest in, offer decent returns, and are safe.
Types of Mutual Funds
1. Equity Funds
Equity funds are mutual funds that invest their funds in stocks. Equity funds tend to grow faster than money market and fixed income funds, but you stand a risk of incurring a loss. As the main goal of any equity fund is long-term growth through capital gains, certain equity funds invested in a few market segments, may tend to have a slight element of risk.
2. Balanced Funds
A balanced fund is a great mutual fund investment plan for medium-term investors. As the name indicates, Balanced Funds, which invest funds in a mix of equities and fixed income securities, are often called hybrid funds. Normally, these mutual funds try to maintain a balance of the funds invested by keeping more than 60% of their investment in stocks and the remaining in bonds. You can enjoy tax-free returns if you invest in Balanced Funds, which have a holding period greater than a year.
3. Fixed Income Funds
Fixed Income Funds are mutual funds that invest funds in a combination of government securities, such as government bonds, certificate of deposits, corporate bonds, and money market instruments that pay a fixed rate of return. These type of mutual funds are considered safe and offer a regular income. It should, however, be noted that that the returns are subject to the availability of distributable surplus.
4. Money Market Funds
Money Market Funds are mutual funds that invest in commercial papers, commercial bills, treasury bills, certificate of deposits, and other instruments specified by the Reserve Bank of India. These funds have a minimum lock-in period of 15 days.
5. Liquid Funds
Under Liquid Funds, your money is invested in short term instruments that can be converted to cash easily, such as Treasury Bills and Commercial Papers. These short term instruments, which are considered low risk, offer reasonable returns and are excellent for short term investments.
6. Fixed Maturity Funds
Fixed Maturity Funds are mutual funds which invest in Debt and Money Market instruments, which are similar to bank fixed deposits. These funds offer maximum benefit if invested for a longer time.
Now, that you have retired, this is the right time for you to plan your post-retirement life judiciously. At this point, when you now have a fair idea of the different types of mutual funds, there is no reason for you to delay your post-retirement financial planning any longer. Invest in the mutual fund of your choice so that you can live your lifestyle in comfort and happiness.
So, go ahead and make that investment – Today!