Many people are not aware of the importance of managing financial goals. They don’t even plan for their financial goals. But financial set-up can be a strong backbone to you at any time of your life. Irrespective of your age, setting financial goals is very vital.
The secret to setting personal financial goals is vital to managing your aspirations and future needs followed by setting smart goals. But why should you go for mutual funds to fulfill your financial goals? Well, mutual funds offer a host of schemes that fulfill the vast needs of investors. For better privileges, you can go for Axis mutual funds.
Whether you are looking for a short-term result or want to create long-term wealth, mutual funds help you to achieve it all. The schemes offered by mutual funds are designed for all types of investors. As individuals have versatile goals, there are mutual funds to help them achieve their objectives. There is something for both conservative and aggressive investors, all wallet sizes, and all age groups.
Choosing the right type of mutual fund is essential to achieving your financial goals. You should take the decision according to the tenure of the investment, and your risk-taking ability. The liquidity offered by the option is also a vital consideration. For example, a debt fund won’t be a good option to save for retirement when you are in your 30s. On the other hand, if you want to save to buy something huge, an equity fund won’t be a suitable choice for you. To solve these issues, here we will discuss the top financial goals with the best mutual funds for you.
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Goal- Plan for retiremen
Diversified equity funds
According to experts, one should start planning for retirement as soon as he or she starts earning. Here, you can use mutual funds to build up your nest egg. If you are in your 20s or 30s and your retirement is almost 25-30 years away, you surely can invest in equity funds. These funds are a bit risky but they have the potential of giving high returns. Equities outperform all other asset classes in the long term. According to Sensex, in the 10 years between 1999 and 2009, investors got returns of 17.15% compared with the 12.96% given by gold mutual funds.
If you carefully choose your equity mutual fund, you will have a good chance as it will outperform the broader market and deliver even better returns than the benchmark index.
Best returns in the past five years: 29.57 percent
Category average in the past five years: 21.88 percent
Goal- Child’s education and marriage
The increasing cost of higher education makes it essential to start saving for your child’s education while your baby is in his/her nappies. If your kid is in primary school, there is still enough time before he or she goes to college. You can invest in a balanced fund that divides the corpus between equities and debt. Balanced funds do not provide equity funds as they have lower exposure to equities. But there is also less risk of these funds offering steady returns. Therefore, balanced funds are an ideal option to save for your child’s marriage too. The 5-year returns of the best-balanced fund are higher than the best sectoral funds.
Best returns in the past five years: 25.22 percent
Category average in the past five years: 17.38 percent
Goal- Plan your taxes suitably
For taxpayers, ELSS funds are like a dream come true condition. For tax deductions, the investment is eligible. ELSS funds are diversified equity funds except for three years from the time of investment and the tax deduction under Section 80C. Being equity-linked instruments, ELSS funds give the highest returns among all tax-saving options. You can use them to save taxes and create wealth. Also, you need to be aware of your entire asset allocation. If you are young, ELSS should account for almost 50-60% of your savings under Section 80C.
Best returns in the past five years: 28.79 percent
Category average in the past five years: 20.06 percent
Here we have mentioned the best possible mutual funds as per your financial goals. So, set your financial goals and invest in mutual funds at your convenience to get a secure life.