Are you investing in right mutual fund with right time horizon?

Assets Under Management (AUM) of mutual funds are skyrocketing as more and more people are investing their idle money in MF schemes. Even the bonus that they receive nowadays is invested as a lumpsum in mutual funds. But the question remains: Is just investing money in a good mutual fund enough or do you need to look at some other factors as well?
 
First of all, it is advisable that you must link your mutual fund investments to your financial goals. Doing this would help you properly channelize your investments. Secondly, check what is the time horizon of your financial goal. It is important to understand that in asset allocation terms, rather than thinking in macro terms, where you create a certain portfolio with certain asset allocation, look at micro terms i.e. goal-wise asset allocation. There is a possibility that your overall asset allocation may not match with your risk profile as you have made investments at a micro level.
 
But why should you deal with your investments at micro levels? This is because, at a micro level, you would exactly know when you require money. However, that is not the case when you consider investing at a macro level. Macro-level investing must come into picture only when you have saved enough and set aside cash required for your ongoing SIP (Systematic Investment Plan) and you still are left with idle money which can be invested for wealth creation.
 
When dealing with investments at micro levels it becomes important to assess your risk and then choose investment according to your risk profile. Risk profile needs to be assessed along with your mutual fund investments periodically say, annually as well as on occurrence of some life-changing events such as birth, death or separation.