Outlook Money
They come with higher risks with potentially higher returns, subject to the performance of the funds' underlying assets.
These funds have relatively low risk with low returns, as the chance of a default is minimal.
These funds have lower risks than equity-oriented mutual funds, but returns are suppressed because of the debt component.
It allocates funds to low-risk assets with the potential for decent returns to help you build the desired retirement corpus.
Inflation can erode your mutual fund returns.
Choose a solution-oriented mutual fund scheme or a regular MF plan, keeping your retirement goals in mind.
As you get closer to retirement, gradually switch your investments from equities to debt-oriented funds.
Consider your risks and financial needs before choosing mutual fund schemes.
Compiled By Avijit Gupta