How are you all? I hope you all enjoyed your New Year’s Day at its best. Well, now its time to pay attention to your investment. It is always said that past performance of any fund is not always sustained, and past performance does not guarantee future returns, instead of this many people choose funds to invest based on their past performance and get unstable when the fund starts performing low.
If we take a look at the frequently asked questions by mutual fund investors, in 2019, most of the questions are regarding the suitability of schemes, many readers were confused why their scheme is performing low or going down, many of the investors even want to know whether they should continue with the schemes they have invested a few months ago, or two years ago, at the most.
Well, today we are here with some strategies that we have extracted from your investments, following these strategies will help you make a good amount of benefits from your invested mutual fund scheme, only you need to get stick to these strategies before you start investing in mutual funds. The strategies are listed below:
1. If you are a DIY (Do It Yourself) investor, you need to do your homework.
If you are a DIY investor, it’s really necessary for you to do your homework on mutual funds, that is a proper analysis of different mutual fund schemes, associated risk, about their fund manager and many more things, not only this, continuously keep your keen eyes on your funds performance, once you invest, as this will help you in proper asset allocation.
2. Hire an expert, if you are not qualified or have the proper knowledge.
Always remember, you are going to invest your hard-earned money, it’s a foolish act to bet in mutual funds without doing a proper analysis. If you don’t have time to analyze different fund schemes and maintain proper regulation of your investment, don’t skip this step, rather hire the services of a seasoned mutual fund advisor.
3. Your fund scheme should match your objective and risk.
For choosing the best and most suitable fund for you, there is only one way, your fund scheme should match your investment objective (financial goal), investment horizon (time in hand to achieve goals), and your risk appetite.
4. In the short term, invest in Debt and for long term invest in Equity.
For your short-term goals. Always invest in debt funds, never opt for equity for a short-term goal, if you do so, you may lose your money. Similarly, Equity Funds are the best bet to build a corpus to meet your long-term goals because only they can offer you inflation-beating and tax-saving returns over a long period. Also, restrict yourself from investing in Equity funds if your risk appetite is low, and you can’t handle the market volatility.
5. Always choose the right Debt/Equity Mutual fund category.
At the time you choose among categories of mutual funds to invest, choose them on the basis of your investment tenure, and risk profile, for example, if you want to invest for a few months, bet in Ultra-Short term Debt Funds, or if you want to invest for few days or weeks, go with Liquid Funds. Similarly, if you are a conservative investor and infectious towards, too much volatility, invest in Large-cap Funds, and distance from small-cap and mid-cap funds. If you have a moderate risk profile, you should invest in a multi-cap mutual fund scheme.
Whatever your investment plan be its best to start and this new year apart from all your resolutions add one to invest for the future.
The above-mentioned strategies would help you to carry out your investment smoothly and would prove extremely significant for your investment in 2020. So, if you haven’t planned your investment, then plan it today, and don’t forget to remain stuck to these strategies, they would help for sure.
Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing and Wish You All A Very Happy New Year 2020!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).