Mutual fund is the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing.
Having looked at the various types of mutual funds, one has to now go about selecting a fund suiting your requirements.
Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit.
Keep in mind the points listed below and you could at least marginalize your investment risk.
When choosing a mutual fund, you should consider how your interest in that fund affects the overall diversification of your investment portfolio. Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk.
Having looked at the various types of mutual funds, one has to now go about selecting a fund suiting your requirements.
Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit.
Keep in mind the points listed below and you could at least marginalize your investment risk.
When choosing a mutual fund, you should consider how your interest in that fund affects the overall diversification of your investment portfolio. Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk.
Read the prospectus
Know your fund manager
Previous Track Record of that fund
Does it suit your risk profile
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