1) Your age- There is a general saying that equity investments as a proportion of your total investible surplus should be 100 – your age. So, if you are in the younger age group, you can invest high percentage of your assets in equity. If you are in the older age group, then high risks assets should be minimized.
2) Your appetite for risks-If you are willing to take risks, then going for Equities may be the best option and they may give excellent returns for your money.
3) The people dependent on you- If you have more number of people dependent on you, avoid Funds involving very high-risks. You may opt for the lower-risk Equity funds, Hybrid and Debt Funds.
4) Your salary- It is not advisable to invest all your money in one single fund. A diversified portfolio would help you in the long run. If the salary is low, it is better to avoid funds that have considerable risk.
5) How frequently do you require the pay-outs- Equities may pay once a year, or whenever profit booking is done. I you need regular pay-outs, then avoid investing in equities.

To choose the Best Funds it is best that you meet a Financial expert, who may pick the Best Funds for you and plan an Investment strategy for you.

Funds that involve high risk, generally give good returns. Yet a Mutual Fund failing completely occurs in rare cases. With modern strategies and the boom in the economy it is rare and the Mutual Fund can always bounce back over a period of time, enough to give you back the invested amount.

If you are open to high risk, then equities is the best option for you. If you are willing to take moderate risks then ‘Balanced Fund’ is the best option for you. If you want to play safe then choose Debt Funds. However, they still suffer from the risks of Interest rates and possibility that the Company may fail to deliver.