Choosing among the different types of mutual funds is probably the most tedious job you have at hand after you’ve made up your mind to invest in mutual funds. To embark on a journey to financial freedom, one must invest wisely in different types of mutual funds to maintain a diversified portfolio for better returns. Now, there are different types of mutual funds to invest in which can be classified on the basis of risk appetite and goals, whether short term or long term.

It is common knowledge that unless one invests regularly it is difficult to achieve financial freedom. Thanks to mutual funds that yield best returns, one has a credible alternative to begin one’s investing journey. But figuring out which mutual fund is suitable for an investor has never been easy. Before reclassification, at last count, there were more than 2000 mutual fund schemes in India. After the reclassification mandate passed by SEBI, mutual funds will be divided into 36 categories.