Friends, To continue our discussion about "Protecting Income against inflation and Creating Wealth", saving from monthly income and investing it in Mutual Funds is most important for our financial health. We need to build a diversified portfolio of different types of Mutual Funds which will protect our hard earned money and will work for us to create wealth. Before we start, please understand "Why Mutual Funds?" in my previous blog which has basics about "Protecting the Income" before we start "Creating Wealth". Click here to read the Basics of Personal Finance Lets understand the major types of Mutual Funds 1. Equity Funds 2. Equity Linked Saving Schemes (ELSS) 5. Balanced Funds 4. Debt Funds 5. Thematic Funds 6. Others 1. Equity Funds: Equity Mutual funds invests your money in Equity markets which means they come with as much risk as the stock market but give better returns in long term. Though Equity MFs invest in equi...