Which is the safest mode of investment in mutual funds

There is nothing called safe investments in mutual funds as by nature Mutual Funds are risky as they invest in market linked investments.

However different category of funds carry different level of market risk and therefore, you should invest in them based on your own risk taking appetite. For example - liquid funds may be the least risky while mid and small cap funds could be the riskiest. Large cap funds are less riskier than mid and small funds.

The other aspect you should understand is the investment horizon. Even if your able to assess your risk, your investment horizon will decide which fund to invest in for that period of time.

Therefore, first asses how much risk you can take with your mutual fund investments, why you are investing meaning the investment goal and the investment period. Once you are very clear on this an investing strategy can be created for your mutual fund investments.

Do write back to us with more details. Thanks for writing to Advisorkhoj !