Mutual fund
We have all heard the slogan of ‘Mutual Fund Hai’ through TV, Radia, online and social media. In the coming days, some cricketer, Bollywood star or other field celebrity is seen promoting mutual funds – mutual funds are correct. But, is mutual funds perfect perfect for all? The answer is not. Mutual funds are not right for all. Mutual funds are not correct if your goal is small or age is old. After the current decline in the market, the return of mutual funds of many people has become negative even after 3 years. Let us know for whom mutual funds are right and not for whom.
1. Invest only the ability to take risk
If you have the ability to take risk then only invest in mutual funds. Mutual fund investment has market risk, liquidity risk, credit risk, GDP growth risk etc. Invest only if you have the ability to take risks. Otherwise, invest in bank FD, PPF, RD or other fixed income investment schemes.
2. Do not invest blindly
80% of investors investing in mutual funds do not know which fund they are investing. Who is his fund manager? If you ask, you will say that SIP is doing. While Sip is a means to invest in mutual funds. So gather information before investing in mutual funds. Do not invest on the things heard on someone’s advice. It is very important to choose the right fund in mutual funds. If you do not do so, you will have to suffer losses.
3. Not measure of return investment
People often think that the fund that is currently performing best will be right for them. But each mutual fund scheme is different. If the investment objective and risk profile of that scheme does not match your needs, then that fund is not right for you.
4. Do check the scheme
It is important that you also understand the investment strategy of the fund house, the eligibility of the fund manager, and the risk management process. The performance of different schemes in the same category may vary.
5. Learn to monitor
It is not enough to choose the right scheme. After investment, it is also necessary to check the performance of the scheme from time to time. From time to time, see if the fund is running according to your goal? If not, change it.
If you can do these five things then only invest in mutual funds. You will also be able to keep your money safe and get the right returns. Otherwise you invest in fixed income products.
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