What’s an investment plan?
A investment plan is a group of investments that have a common purpose and a defined goal.

What shapes your investment plan?
Your investment plan is usually defined by the objective of your investment. This objective or goal decides your investment time-frame. For example, a goal like ‘Child’s Higher Education’ might need 8 years, whereas a goal like ‘House Purchase’ may take about 5 years. On other hand, a ‘Holiday to Europe’ might take somewhere around 3-4 years.

Composition of your investment plan depends heavily on how long you decide to stay invested. Here, take a look at it yourself.

  • 7 + years
  • 5-7 years
  • 3-5 years
  • 1-3 years

7+ years:

This plan can truly give you good returns. Your plan should emphasize majorly on equity investment along with smaller and medium sized companies within the equity space.

Mid & Small Cap Funds:

Mutual funds which diversify investments in between mid and small cap companies are termed as mid and small cap funds. The proportion of investments between midcap and small cap may vary from fund to fund.

Large & Mid Cap Funds:

Mutual funds which diversify investments in between large and mid capitalization companies are classified as large and midcap funds. The ratio in which the investment is diversified, between large and mid cap companies, might differ from fund to funds. Due to their exposure in both large and midcap funds, these funds are positioned on a higher risk return tradeoff plane compared to a pure large cap fund.

Ultra Short Term Funds:

Ultra short-term funds invest in fixed-income instruments which are mostly liquid and have short-term maturities.

5-7 years:

This plan can generate growth while keeping risk somewhat limited. A bulk of your investment plan should comprise of equity funds. Mostly, large cap funds that have a track-record of relatively stable growth for an equity fund.

Large Cap Funds:

Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds. The criteria for large cap companies may vary. However, these are generally the ones with huge market capitalization. Large cap funds are known to offer stable and sustainable returns over a period of time.

Large & Mid Cap Funds:

Mutual funds which diversify investments in between large and mid capitalization companies are classified as large and midcap funds. The ratio in which the investment is diversified, between large and mid cap companies, might differ from fund to funds. Due to their exposure in both large and midcap funds, these funds are positioned on a higher risk return tradeoff plane compared to a pure large cap fund.

Ultra Short Term Funds:

Ultra short-term funds invest in fixed-income instruments which are mostly liquid and have short-term maturities.

3-5 years:

The plan consists of 70 per cent equity and 30 per cent fixed-income investments. This automatically rebalances the exposure between equity and debt. The relatively large fixed-income exposure means that they are a lot more stable during volatile times.

Hybrid Funds:

Fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed.

Ultra Short Term Funds

Ultra short-term funds invest in fixed-income instruments which are mostly liquid and have short-term maturities.

1-3 years:

This plan is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed.

Hybrid Funds:

This plan gives you a high degree of safety while taking some advantage of the growth potential of equity. The equity-oriented hybrids in this investment plan will implement automatic rebalancing between equity and fixed-income and thereby protect your returns.
The above investment simulation, based on assumed rate of return(s), is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Birla Sun Life Mutual Fund / Birla Sun Life Asset Management Company Ltd. is not guaranteeing or promising or forecasting any returns. Investment in Mutual Funds does not assure a profit or guarantee protection against loss in a declining market. Entry / Exit load is not taken into consideration in the above investment simulation.
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