Best Type of Mutual Funds for a Comfortable Retirement
Retirement is the time which can either be a blissful phase or can be an entire different state of chaos and worries. But the best part is that you can always prepare yourself for the former option.
Mutual funds come with numerous benefits and at the same time carry a lot of technicalities. It is important to do good research, find suitable options and scale down to the ones which fulfill your requirements.
Here are a few mutual fund options for a comfortable retirement -
- Equity Mutual Funds - Investing in Equity Mutual funds can be a very smart move considering the high returns it can yield. An equity mutual fund invests money in stocks of different companies all across the market which in turn yields high returns. They have the capacity to yield returns which are much higher in value than any other form of investment. But at the very same time it is also the most risky option amongst all other forms of investment.
- Systematic Investment Plan (SIP) - An SIP can be understood as one of the most secure forms of investment. Systematic Investment Plan allows the investor to put in small amounts of their capital in stocks. This amount is invested on a regular basis, in a periodic manner. It takes more time as compared to other investment options but assures long term profit and builds a good wealth portfolio.
- Liquid Gold Investment - Investing in gold is one of the most conventional forms of investment. With time this investment has transcended the limits of physical gold and reached the liquid gold market. Liquid gold is basically digital gold. This means that you can invest in gold by purchasing particular bonds. Whenever you are in need of money, you can sell it according to the current market price of gold in the market and cash out your investment. This can be even more effective and profitable if you sell your bonds when the market price is higher than your initial investment.
Investments can be a great method of allowing your savings to become more productive. Static money will not be able to multiply itself but investing your money allows you to make it dynamic and generates additional income. Retirement should be a phase where you can relax and compensate for all those times when you were caught in your faced paced life. But in order to make it comfortable you need to ensure proper planning and research.