Sep 27, 2016 09:45 AM
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Mutual Funds are best way to build the wealth over long time. Investment should be always long term. It may be stock market or mutual fund or Real estate. When the investment made in real estate, we never track the value of investment daily, where as in share market or mutual fund we always track the market. This is the main disadvantage to our investment.
General Tips on mutual funds are:
1) SIP(systematic Investment plan) is the best proven system to accumulate the large money over long period.
2) Invest in only four mutual finds. Ex If you want to SIP Rs 10, 000 pm, select 4 funds and invest Rs 2500 in each fund.
3) The selection of Mutual fund can be done in moneycontrol.com. They provide the best mutual funds among all mutual funds. Select the top mutual fund.
4) The portfolio should contain two large cap funds, one midcap fund, and one hybrid fund. So the portfolio will be balanced.
5) The performance of the MF is important not the NAV of MF.
6) Don’t disturb the SIP, it should be minimum 10years.
7) Only invest that money, which is not important to you.
8) Don’t always watch the performance of your portfolio. Only track for every three months.
9) The main advantage of MF is tax free after certain period and entry and exit loads are also very less.
10) First decide your goal. How much is required to fulfill your goals.
