I have recently installed the Panels module. It allows me to create custom layouts for my contents. Now, what i wish to do is, choose these template layouts while creating/editing a certain type of component so that when viewed that content appears in the selected layout.
Hope I made myself clear. Please excuse me if this topic has already been discussed. If so, providing me the link of the post will be helpful enough. Actually I am sort of a newbie in Drupal and more so in the Panles module. So not really sure if my requirement is feasible in the first place.
Thanks in advance...

You can do this by adding a field in your Content type for example of type List (text) > Select list. Each list item will represent a Panels display.
Then create a Panel display variant to override the node template (/node/%node) where you have to add the Selection rules: "YOUR List(text) field". So each variant will display if user selects the connected list option.
If you want to see the selected display online without clicking the Save button you will need probably an ajax effect.