Choose the types of funds appropriate to strategy and performance.
• Equity funds: Best for long-term growth. There are subcategories large-cap, mid-cap, small-cap, and sector-specific funds.
• Debt/Bond Funds: Relatively safe, income is steady, but cannot keep pace with the returns of an equity fund.
• Index Funds: Designed to track market indexes, and passively managed, so they are also low-cost.
• Balanced or Hybrid Funds: The fund consists of a mix between equity and debt, emphasizing growth with stability