Based on the risk scale from very low to high-risk funds, it is advisable to start with investing in very low-risk mutual funds. Liquid funds and short-term funds (from one month up to one year) are considered low-risk mutual funds as they are less volatile as compared to most equity schemes. These mutual funds are best for fulfilling short-term financial goals. Nevertheless, investors can choose any mutual fund based on knowledge, economic growth and their financial goals and preferences.