Check out: 3 equity funds for long-term financial targets

In an interview to CNBC-TV18, personal finance expert, Sumeet Vaid of Ffreedom Financial Planners spoke about the importance of setting a financial goal in the current volatile market environment. He also picked few debt and equity funds which one can consider investing in now.

Also Read: Mutual Funds garner over Rs 70,000 cr from investors Below is the verbatim transcript of Vaid's interview with CNBC-TV18. Caller Q: I can invest Rs 5,000 a month for four months and thereafter Rs 7,000 a month. I am paying home loan equated monthly installments (EMI) of Rs 21,000 per month with 11 years remaining. How should I utilise the balance fund? A: First and foremost advice is to articulate your goal because without goal it becomes difficult to know what is your objective of saving or what are you trying to achieve in terms of investment. You should have a goal which is slightly long-term in nature and in your case goal is not mentioned so we are assuming there is a retirement goal over a period of next ten years and once you get the goal and duration right for that planning then you can articulate an asset allocation. Therefore, any goal which is above six-seven years, which is long-term duration, you can have an asset allocation suggested at 80 percent equity and 20 percent fixed income which further gets divided into largecap and midcap equity out of 80 percent and fixed income in the dynamic bond fund. The allocation advice for your query will be to look at 80 percent in equity fund, funds like ICICI Prudential Discovery Fund, ICICI Prudential Dynamic Fund, HDFC Equity Fund and DSP Blackrock Equity Fund. On the fixed income side look at Birla Sun Life Dynamic Bond Fund and ICICI Prudential Dynamic Debt Fund. So, these will be good allocation to start with. However, do remember that goals are very important, especially in a volatile market. If you want to persist, if you do not want to get worried about what is happening to your investment and keep taking your money out every six months then have a goal because that will help you to stay long.