Choosing the right fund category

Equity (13%)

Invests primarily in stocks. Highest expected return over long horizons, but with significant short-term volatility. Best for goals 7+ years away.

Hybrid (9%)

Mix of equity and debt. Lower volatility than pure equity, suitable for goals 5–7 years away.

Debt (6.5%)

Invests in bonds and fixed-income securities. Very low volatility, suitable for goals under 3 years.

ELSS (12%)

Equity funds with 3-year lock-in, qualifying for Section 80C deduction. Same risk-return profile as flexi-cap equity.

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