For goals, which are around five years away, balanced mutual funds can be the answer. Similarly, for goals that are 1-3 years away, debt funds should be the ideal parking slot. For your needs that are less than a year, shorter-term and liquid funds should be your investment vehicles.
Here are a few important points to keep note of while investing in mutual fund schemes:
Never ignore the objective of the scheme
Investing in a specific MF scheme without knowing the scheme’s objective is like boarding a train without any goal in mind. Every fund’s information document including the fact sheet carries the objective of the scheme. Read it to align to your goals. Depending on the objective of the MF scheme, the fund manager invests in the stocks of large-, mid-or small-cap companies, or in a mix of them. Whether the scheme would diversify across industries or be concentrated in one or few specific is also conveyed from the objectives. Each fund, therefore, has its own distinguished objective and risk-reward grid. Understanding what is important to align your financial objectives with that of the funds’ performance is key to generating optimum results.
Building wealth- Little by little
Bu hikaye Investors India dergisinin November 2020 sayısından alınmıştır.
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Bu hikaye Investors India dergisinin November 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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