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Best Mutual Funds to Invest in Based on Where You Are in Life


by Mahindra Finance


June 30, 2023


4 mins read

No matter what stage of life you are in, investing is a financially-prudent habit to cultivate. Financial investment entails making decisions like when to buy stocks, when to invest in FDs, the best time to invest in mutual funds and the best mutual funds to invest in. These decisions will vary depending on where you are in life. For young investors, it is the best time to buy shares and equity mutual funds. For older investors with more financial responsibilities, a balance between debt and equity funds can help meet their financial needs. In this blog, we will outline the best mutual funds to invest in depending upon your life stage.

What is Life-Stage Financial Planning?

Life-stage financial planning refers to planning your financial investments depending upon the stage of life you are in. Some of the major factors that impact your financial decision while life-stage planning are:

  • Age
  • Amount of disposable income
  • Amount of financial responsibilities
  • Saving capacity
  • Market trends

When done right, life-stage financial planning can help you with wealth accumulation and wealth creation.

Best Mutual Funds to Invest in Depending Upon Your Life Stage

Broadly, an individual’s investment journey can be categorized into four life stages:

1. Start of Your Career

Ideally, you should start investing with your first salary. Getting a head-start on your investment journey can help you meet your financial goals with ease. At the start of you career, you have fewer responsibilities and can save more. Goals are usually short-to-medium term like taking a vacation, saving for higher studies or buying a car. Since you have age on your side and flexibility to save and invest, this is the best time to buy stocks. It is also the best time to invest in mutual funds that are equity-based because you have time stomach volatility.

2. Partnership or Marriage

The next stage of life is when you get into a committed partnership. This will involve more financial responsibilities and shared financial goals. It could involve medium-to-long term goals like saving for a house and for parenthood. The ability to take risks will reduce a little. This is the best time to invest in mutual funds that provide a balance between stable returns as well as wealth generation. Hybrid mutual funds, dynamic asset allocation funds and even large-cap equity funds can be a good investment at this life stage.

3. Parenthood

When you become a parent, your financial responsibilities and commitments will take a complete turn. Apart from meeting the present needs of your child, you will also need to plan their education, marriage and other long-term goals. The best mutual funds to invest in at this life-stage are ones that will give you stable, long-term returns. Consider diversifying your investment among large-cap funds, multi-cap funds and some debt funds for stability.

4. Retirement

The final financial life cycle is the time of retirement. This is when you need regular income and need to minimize your risks. This is the best time to invest in mutual funds that provide regular income like dividend funds. Low-risk mutual funds like overnight funds, liquid funds and other debt funds should be your other go-to options. Now may not be the best time to take a bet on shares.


Planning your financial investments according to your life stage can give you more clarity about the best mutual funds to invest in. The best time to invest in mutual funds is as soon as you can. This will ensure that you meet all your goals comfortably, without much hassle. If you are looking for a portal that gives you clarity and details about the best mutual funds to invest in, choose Mahindra Finance Investment Solutions Portal, a safe and online platform for your investment needs.

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