Investors often wonder whether to choose equity or debt mutual funds. The right choice depends on your financial goals and risk appetite.
Equity Funds:
- Invest in stocks, high-risk, high-return potential.
- Suitable for long-term goals like retirement or wealth creation.
Debt Funds:
- Invest in fixed-income securities like bonds, lower risk, moderate returns.
- Ideal for short-term goals or conservative investors.
Hybrid Option:
- Combines equity and debt to balance risk and returns.
- Great for investors seeking moderate growth with lower risk.
Your choice should align with your financial goals, risk tolerance, and investment horizon.