What is your ideal MF portfolio?

People are always asking what are the best mutual funds or what is the best mutual fund portfolio? But they need to understand that there is nothing called as the best and that mutual funds cannot be generalized. This means that mutual funds that suit you may be best for you but on the other hand can be worst for other. So it is more of a personalized thing rather than generalized. So what is your ideal mutual fund portfolio and how to get one?

As mentioned before not every mutual fund suits everyone, as people have different objectives, financial situations and risk-taking ability. So an ideal mutual funds portfolio can be termed as a portfolio which is derived after taking into consideration individual risk-taking ability, financial situations and financial goals.

Financial goals also play an important part while deciding your ideal mutual fund portfolio. In fact, investing based on financial goals would create its own individual sub-mutual funds portfolio as investments are made based on the time horizon of the goal and your risk appetite.

You may wonder why is it important to take into consideration your risk appetite before designing your personalized mutual funds portfolio? As you know, mutual funds are of different types. Not all mutual fund products will suit you. For example, if your risk profile is assessed to be conservative, then it would be better investing majorly in debt mutual funds and on the other hand, if your risk profile is assessed as aggressive then you are better off investing in equity mutual funds.