📚 Mutual Fund Basics

How to Choose the Right Mutual Fund Category

📅 January 2024⏱ 5 min read
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The 5-Minute Framework

Two questions determine the right category: (1) When do you need the money? (2) How much volatility can you handle?

TimelineCategoryExpected Returns
Under 1 yearLiquid Fund5-6%
1-3 yearsShort Duration Debt6-7%
3-5 yearsBalanced Advantage8-10%
5-7 yearsLarge Cap10-12%
7-10 yearsFlexi Cap12-14%
10+ yearsMid + Small Cap14-18%

Simple Starting Point

For most investors: 60% Flexi Cap + 30% Mid Cap + 10% Small Cap covers most 10+ year goals. Use our SIP Calculator to see expected corpus.

Contact: myself@sipcalculators.in

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