7 Tricks To Invest In A Mutual Fundby Shashank Bhaskar Finance Adviser
Money is a necessity to fulfil all luxurious and essential goods and services. If you start saving from the present day, you can meet future expenses without borrowing money. With the rise in financial uncertainties and emergencies, you need to plan your costs and search for ways to earn returns.
With a mutual fund investment, you can add extra weight to your pocket. The returns you earn help you save for the future and achieve your financial goals. If you invest using the right strategy and tricks, you can make profits.
- Set your goals: Assess your goals on parameters like the amount of corpus and its maturity. You can stay focused and track your investment growth. Goal setting is crucial to a planned and determined approach.
- Realise your budget: Realise your current and future cash flow. Fund your future needs without compromising too much on the present ones. Frame a budget to fulfil requirements, wants, and savings.
- Time horizon: Your fund selection depends mainly on the time horizon you wish to invest in mutual fund. For long term goals, you can invest in equity mutual funds for greater returns. Debt funds are less volatile and ideal for short term goals.
- Type of investment: Investors with a low-risk appetite can stock less risky funds with a lesser impact of market phases on them. Moderate or high-risk investors can invest in riskier funds like equities.
- Frame the investment plan: After considering your goals, time horizon, risk appetite, and cash flow frame a plan for your investments. Consider your retirement plan, savings deposits, fixed deposits, and mutual funds to get a clear picture of your finances.
- Review the investment portfolio: Now that you are well invested and aim towards your goals, you must not leave your investment portfolio to itself. As per the market situation, there are chances of underperforming funds. Weed out the non-performers and invest in more suitable funds.
- Convenience: With the help of online mutual fund investment, you can access your investment portfolio at any time conveniently. You can also choose your funding house by comparing the features and schemes it offers with other competitors. Select between three categories of funds: equities, debt funds, and hybrid or balanced funds.
Invest across various sectors and companies to reduce risk and optimise the returns. It helps you accumulate a massive amount over some time with regular and disciplined investing. You can also use the mutual fund app from your smartphone to monitor the fund performance conveniently, even while travelling elsewhere.
Created on Apr 23rd 2021 02:48. Viewed 194 times.