Match mutual fund categories to your investment horizon and risk appetite, and see which ones fit and which do not.
Your Investment Profile
More than 5 yearsModerate risk
Conservative Hybrid Funds
Highly Suitable
Risk:Medium
1 Year
8-10%
3 Years
8-11%
5 Years
9-12%
Invest 75-90% in debt and 10-25% in equity instruments.
10-25% equity allocation
Lower volatility than pure equity
Regular income potential
Balanced approach
Balanced Hybrid Funds
Highly Suitable
Risk:Medium-High
1 Year
10-13%
3 Years
10-14%
5 Years
11-15%
Invest 40-60% in equity and 40-60% in debt instruments.
40-60% equity allocation
Moderate volatility
Professional rebalancing
Good for 5+ years
Large Cap Equity Funds
Highly Suitable
Risk:High
1 Year
8-15%
3 Years
12-16%
5 Years
11-15%
Invest minimum 80% in large-cap stocks (top 100 by market cap).
80% in top 100 companies
Relatively stable
Lower volatility in equity
Good for beginners
ELSS Tax Saver Funds
Highly Suitable
Risk:High
1 Year
10-16%
3 Years
12-18%
5 Years
12-16%
Invest minimum 80% in equity with 3-year lock-in and tax benefits.
80% in equity
Tax benefit u/s 80C
3-year lock-in period
Dual benefit of tax saving & growth
Mid Cap Equity Funds
Moderately Suitable
Risk:Very High
1 Year
6-20%
3 Years
15-20%
5 Years
13-18%
Invest minimum 65% in mid-cap stocks (101st-250th by market cap).
65% in mid-cap stocks
High growth potential
Higher volatility
Long-term wealth creation
Liquid Funds
Not Recommended
Risk:Very Low
1 Year
4-6%
3 Years
4-6%
5 Years
5-6%
Invest in money market instruments with maturity up to 91 days.
High liquidity
Capital preservation
No exit load
Suitable for emergency funds
Ultra Short Duration Funds
Not Recommended
Risk:Low
1 Year
5-7%
3 Years
5-7%
5 Years
6-7%
Invest in debt instruments with Macaulay duration of 3-6 months.
Low interest rate risk
Better than FD returns
Minimal credit risk
3-6 months investment
Short Duration Debt Funds
Not Recommended
Risk:Low
1 Year
6-8%
3 Years
6-8%
5 Years
7-8%
Invest in instruments with Macaulay duration of 1-3 years.
1-3 years duration
Moderate interest rate risk
Good for medium-term goals
Tax efficient after 3 years
Corporate Bond Funds
Not Recommended
Risk:Low-Medium
1 Year
7-9%
3 Years
7-9%
5 Years
8-9%
Invest minimum 80% in corporate bonds rated AA+ and above.
Invest in AAA/AA+ rated bonds
Higher yield than govt bonds
Credit risk involved
Good for 3-5 year goals
Small Cap Equity Funds
Not Recommended
Risk:Very High
1 Year
5-25%
3 Years
18-25%
5 Years
15-20%
Invest minimum 65% in small-cap stocks (251st company onwards).
65% in small-cap stocks
Highest growth potential
Maximum volatility
10+ years horizon ideal
The return ranges shown are indicative historical figures for each SEBI fund category, not a live feed and not a forecast. Category suitability is a general educational guide based only on horizon and risk appetite — it takes no account of your income, existing holdings, tax position or goals.
How to Use This
Start With the Horizon
When you need the money is the single biggest constraint. Equity needs time to recover from falls, so money required within three years generally does not belong there.
Be Honest About Risk
Risk appetite is what you will actually do in a 30% drawdown, not what you would like to think you would do. Selling at the bottom is the costliest mistake in investing.
Categories, Not Funds
This narrows the field to categories. Choosing a specific scheme means also looking at expense ratio, fund manager tenure, portfolio concentration and consistency against the benchmark.
Diversify Across Categories
Most portfolios hold several categories at once rather than one. The mix — and rebalancing it as it drifts — usually matters more than picking the single best fund.
These figures are indicative projections based on the inputs you provide. They assume a constant rate of return, which real markets do not deliver. Nothing here is investment advice — consult a SEBI-registered adviser before making a decision.