• Debt Mutual Funds: Invest in bonds, lower risk (compared to equity funds), suitable for short-term goals (goals in which you need money in 1-3 years)
• Equity Mutual Funds: Invest in stocks, higher return potential, higher risk, suitable for long-term goals (goals where you need money after 5-6 years or more)
• Hybrid Mutual Funds: Invests in a mix of both equities and bonds, balances risk and return, suitable for medium-term goals (goals for which you will need money in 3-5 years)
  
  

The mutual fund universe is vast and requires substantial time and effort to understand fully. The guidelines mentioned above serve as a starting point to help you choose the right fund category based on your financial goals, risk tolerance, and investment capacity. However, to identify the specific mutual fund that best suits your needs, it is advisable to consult a financial advisor or a mutual fund distributor who can help you design a customized wealth-building plan.