Investment

Best Mutual Funds to Invest in Based on Where You Are in Life

Best Mutual Funds to Invest in Based on Where You Are in Life

No matter what stage of life you are in, investing is a financially-prudent habit to cultivate. Financial investment entails making decisions like when to buy stocks, when to invest in FDs, the best time to invest in mutual funds and the best mutual funds to invest in. These decisions will vary depending on where you are in life. For young investors, it is the best time to buy shares and equity mutual funds. For older investors with more financial responsibilities, a balance between debt and equity funds can help meet their financial needs. In this blog, we will outline the best mutual funds to invest in depending upon your life stage.

What is Life-Stage Financial Planning?

Life-stage financial planning refers to planning your financial investments depending upon the stage of life you are in. Some of the major factors that impact your financial decision while life-stage planning are:

  • Age
  • Amount of disposable income
  • Amount of financial responsibilities
  • Saving capacity
  • Market trends

When done right, life-stage financial planning can help you with wealth accumulation and wealth creation.

Best Mutual Funds to Invest in Depending Upon Your Life Stage

Broadly, an individual’s investment journey can be categorized into four life stages:

1.Start of Your CareerIdeally, you should start investing with your first salary. Getting a head-start on your investment journey can help you meet your financial goals with ease. At the start of you career, you have fewer responsibilities and can save more. Goals are usually short-to-medium term like taking a vacation, saving for higher studies or buying a car. Since you have age on your side and flexibility to save and invest, this is the best time to buy stocks. It is also the best time to invest in mutual funds that are equity-based because you have time stomach volatility.

2.Partnership or Marriage The next stage of life is when you get into a committed partnership. This will involve more financial responsibilities and shared financial goals. It could involve medium-to-long term goals like saving for a house and for parenthood. The ability to take risks will reduce a little. This is the best time to invest in mutual funds that provide a balance between stable returns as well as wealth generation. Hybrid mutual funds, dynamic asset allocation funds and even large-cap equity funds can be a good investment at this life stage.

3.ParenthoodWhen you become a parent, your financial responsibilities and commitments will take a complete turn. Apart from meeting the present needs of your child, you will also need to plan their education, marriage and other long-term goals. The best mutual funds to invest in at this life-stage are ones that will give you stable, long-term returns. Consider diversifying your investment among large-cap funds, multi-cap funds and some debt funds for stability.

4.RetirementThe final financial life cycle is the time of retirement. This is when you need regular income and need to minimize your risks. This is the best time to invest in mutual funds that provide regular income like dividend funds. Low-risk mutual funds like overnight funds, liquid funds and other debt funds should be your other go-to options. Now may not be the best time to take a bet on shares.

TakeawayPlanning your financial investments according to your life stage can give you more clarity about the best mutual funds to invest in. The best time to invest in mutual funds is as soon as you can. This will ensure that you meet all your goals comfortably, without much hassle. If you are looking for a portal that gives you clarity and details about the best mutual funds to invest in, choose Mahindra Finance Investment Solutions Portal, a safe and online platform for your investment needs.

Related Topics

Investment

Things to Consider When Choosing a Fixed Deposit Scheme

Know more

Investment

6 Reasons to Open a Fixed Deposit

Know more

Investment

Difference Between Cumulative and Non-Cumulative Interest Rates

Know more

Investment

5 Reasons to Invest in Fixed Deposits

Know more

Investment

Fixed Deposit Myths You Should Stop Believing

Know more

Investment

Tips to Invest in High-Interest Fixed Deposits

Know more

Investment

Myths Busted: Fixed Deposits

Know more

Investment

Why Choose Fixed Deposits?

Know more

Investment

What are the Pros and Cons of Investing in a Fixed Deposit?

Know more

Investment

Fixed Deposit Updates in 2019

Know more

Investment

Fixed Deposit Schemes in India

Know more

Investment

Top Success Formulas for Small Businesses

Know more

Investment

Five Reasons to Start an SIP Right Now

Know more

Investment

Mahindra Finance_ What are mutual funds?

Know more

Investment

What are SIPs

Know more

Investment

What are the different types of equity funds in India?

Know more

Investment

A Layman's Guide to Mutual Funds

Know more

Investment

What are Debt Funds?

Know more

Investment

What are equity funds?

Know more

Investment

What are hybrid funds?

Know more

Investment

What are Tax Saving Mutual Funds?

Know more

Investment

What Are the Advantages of Investing in Mutual Funds?

Know more

Investment

What are the Different Caps in Mutual Funds?

Know more

Investment

What are the different types of equity funds?

Know more

Investment

When to Invest in Mutual Funds Based on Your Investment Goals

Know more

Investment

Why Is It Important To Go With The Portfolio Method Of Investing?

Know more

Get in Touch

Mahindra & Mahindra Financial Services Limited
4th Floor, Mahindra Towers,
Dr. G.M. Bhosale Marg,
P.K. Kurne Chowk, Worli,
Mumbai 400 018.

Click here to locate the nearest Mahindra Finance

Calculate Your EMI

  • Diverse loan offerings
  • Less documenation
  • Quick processing
Loan Amount
Tenure In Months
Rate of Interest %
Principal: 75 %
Interest Payable: 25 %

For illustration purpose only

Total Amount Payable

50000

Top
fraud DetectionFraud Advisory MF - Whatsapp ServiceWhatsApp
*