Know Your Investments
A retirement fund is a specialized investment account designed to accumulate savings for individuals to support their financial needs during retirement. It often includes a mix of stocks, bonds, and other assets, with the goal of providing a reliable income stream and maintaining financial stability in retirement years.
A Retirement Fund will have Lock-in for at least 5 years or till retirement age whichever is earlier.
- Retirement funds typically have a diversified asset allocation, balancing equities for long-term growth with bonds and fixed-income instruments for stability. The allocation may evolve over time, becoming more conservative as the investor approaches retirement, aiming to preserve capital and provide a reliable income stream during retirement years.
A children's fund is an investment vehicle designed to accumulate savings for a child's future needs, such as education, marriage, or other significant life events. It often involves a mix of equities, debt, and other instruments, aiming to provide long-term growth and financial security for the child.
A Children’s Fund will have Lock-in for at least 5 years or till the child attains age of majority whichever is earlier.
- Children's funds typically adopt a balanced allocation, investing in a mix of equities for long-term growth and debt instruments for stability. The allocation aims to accumulate wealth over the child's formative years, ensuring a well-rounded portfolio to meet financial needs such as education and other significant milestones in the future.
Who Should Invest In Equity Mutual Funds
Types of Mutual Funds
EQUITY
Equity funds primarily invest in stocks, aiming for capital appreciation, growth and higher returns. Subject to market volatility and risk.
DEBT
Debt funds primarily invest in fixed-income securities like bonds, providing stability and income generation, making them suitable for risk-averse investors seeking steady returns.
HYBRID
OTHERS
Other funds include index funds & FOFs. Index funds replicate market indices and FOFs which invest in other mutual funds, providing diversified investment options.
