1 Based on your age and current financial situation, which type of mutual fund s

Question

1 Based on your age and current financial situation, which type of mutual fund seems appropriate for your investment needs?

2 As people get closer to retirement, their investment goals often change. Assume that you are now 45 and have accumulated $110,000 in a retirement account. In this situation, what type of mutual fund would you choose? Why?

3 Assume that you are now 60 years of age and have accumulated $400,000 in a retirement account. Also assume that you would like to retire when you are 65. What type of mutual funds would you choose to help you reach your investment goals? Why?

Explanation / Answer

1. In reference to the first question present age has not mentioned so I will conclude with based on the risk, if the nature is very low risk completely invest in debt mutual funds and if risk is moderate invest in moderate funds which include mix of equity and debt and if high risk go for 100% equity based funds. In present financial situation it is better to go for mix of both equity and debt mutual funds.

2. as if the age in 45 the risk appetite would be moderate so better to invest in growth funds which have tax saving option so that the fund invested will be growing along with some more saving would be made in the form of tax free.

3. in the age of 60 risk would be relatively very low so better to go for complete debt based mutual funds so that the investment amount would be safe along with fixed rate of return.

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