Mutual Funds, Dec. 29 -- When planning to invest in mutual funds, the timing of your goal is your most important guide. Generally, the closer you are to needing the money, the safer your investment should be. For instance, if your goal is less than a year away, experts recommend parking your savings in debt mutual funds.

For financial goals of five years or more, mid-cap funds are often a strong choice. But what is the best strategy for investors in the middle? Here are the key points to consider for medium-term investing:

I. Inclination to equity: When the financial goal is medium-term away, i.e., 5-7 years, one may risk putting money in equity. And from a medium-term perspective, one could invest in large-cap and flexi-cap mutual fund...