Different MF Schemes for different goals

different mutual fund schemes for different financial life goals

You could plan early in the fiscal year to meet your financial goals using various mutual fund schemes

A new financial year is just around the corner. With it will come a host of financial responsibilities and short-term goals to achieve. These could include paying quarterly insurance premiums, fees for the children’s school and other academic and hobby classes, planning for a foreign vacation etc. In addition, the investing to achieve the life’s long-term goals will continue. The question here is if there are easy solutions to meet these financial commitments smoothly. The answer is yes. One could use various mutual fund schemes to meet each of life’s goals at various stages. Here are some examples:

3 monthsLiquid Funds
Short termDebt funds
3 yearsDebt funds
3 years to 5 yearsBalanced funds
More than 5 yearsEquity funds


Quarterly outgo: Insurance premiums, education costs of children: With these goals in mind, one could start investing in liquid funds every month and withdraw the required amount as and when required.

Annual outgo: Fee for child’s school domestic vacation: One could start investing in short term debt funds on a regular basis and withdraw the required amount when needed.



Major expense after three years: Buying a two-wheeler, a foreign vacation: Regular investments in medium term debt funds and some amount may also be put in arbitrage funds.

Major expense after five years: Buying a four wheeler: Investing regularly in a balanced fund could be one of the better solutions.



Expenses planned more than five years: Child’s higher education, cost of wedding: Start SIP in equity funds

Regular tax savings & wealth creation: SIP in ELSS is the preferred solution for most investors

Building a retirement corpus: Again, SIP in various types of equity funds is the preferred solution

A caveat: All investments should be done after considering the risk profile of the investor.

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