Money Guru: Investing in mutual funds is a good decision. When money is invested smartly and with the right strategy, then it surely rewards. It can also play a big role in financial planning. But which funds are right for retirement? How to do a financial planning for children's education? What are Solution Oriented Funds? The expert Viral Bhatt, founder of Money Mantra explained this in a popular TV Show Money Guru.

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Types of goals
Target                                         Period                                            Category
Short Term                               6 Months - 3 Years                           Debt Funds
Medium Term                           3 Years - 5 Years                              Hybrid Fund
Long Term                                5 Years - 15 Years                            Equity Funds

Short term goal
This category has a target duration of 6 months to 3 years. This type of goal can be kept for emergency needs. Apart from this, investors can also set goals for vacation and loan repayment. The expert suggested investing in debt funds for a short-term goal. Like, investing in short-term and ultra-short-duration funds. Investors can also invest money in liquid funds.

Medium-term goals
This category has a target period of 3-5 years. Investors can set goals for works like home renovation and foreign vacations etc. Apart from this, the aim of buying a car can also fall into this category. One can invest in hybrid funds with medium-term goals. Hybrid funds include both equity and debt. Investors can invest in Conservative Hybrid Fund and Balanced Advantage Fund (BAF).

Long term goals
This category has a target period of above 7 years. Goals include children's education, marriage, retirement, etc. The expert suggested investing in equities for long-term goals. Like - make some investments in large-cap and sectoral funds.

Tax Saving - ELSS
The ELSS stands for Equity Linked Savings Scheme.
Tax saving option in equity funds
Investment up to `1.5 lakh tax-free in 80C
Lock-in period of 3 years in ELSS

Goal-oriented Fund
There are two types of funds in Solution-Oriented Funds. It included children's future planning and retirement planning. It has open-ended funds and tax exemption benefits. Children Fund, Retirement Fund both have a lock-in of 5 years.
Amount for the child Maturity rule 5 years or till the child attains the age of majority
Maturity in retirement fund is 5 years or retirement, whichever is earlier.

Solution-Oriented Fund - USP?
Minimum lock-in is 5 years
Some funds are like flexi cap category
Some act like hybrid funds
Different Allocation of Fund Houses, Benchmark Indexes
Scheme change facility in most of the funds
Can switch plans with auto-switch option