Just investing your income in the market is not enough. It is important for you to identify the right investment plan to earn the optimal returns from your fund allocation. Choosing the right investment plan will help you in accumulating wealth in the future whereas the wrong plan will result in losses for you in the present and will also fail in creating wealth for the future. Therefore, it is important to invest in the right plan.

While investing, you will find that there are several investment tools and one of them is mutual funds. They are an investment product that pools money from a group of investors to purchase different securities like stocks, bonds, gold and money market instruments. However, mutual funds are not a monolith and there are numerous types of mutual funds available in the market based on your risk appetite. One such option is index funds.…