Home Mutual Funds How To Make Money From Mutual Funds In India

How To Make Money From Mutual Funds In India

143
0
SHARE
Mutual Funds In India

Financial Planning With Mutual Funds In India

Mutual Funds In India:- The mutual fund helps to make some money with securities but there are many advantages and disadvantages. The main advantage of mutual funds is that they provide liquidity and are taken cared by professional investors whereas disadvantage of mutual funds is that the fees and expenses are very high.

So let us focus on some important points that one should take care of before investing in Mutual Funds In India.

1.UNDERSTAND YOUR RISKS

One should understand their risks before investing in mutual funds if you can take higher risks you might prefer riskier asset classes while the people who can afford low risks would prefer to trade with less risky assets and should invest with long term for achieving their goals.

Director and head of mutual funds said that investors with low risks assets can choose equities as their options to achieve their goals with lower investment. They also said that it is also important to access one’s risk profile from time to time.

2.INVESTMENT AMOUNT

Investment in mutual funds should be according to your financial planning. Before investing one must know that how much money he/she will require to complete the specific goals without affecting the financial planning and how much they can save for investments.

Kunal Bajaj CEO & founder of Clearfunds.com explained how much to save and invest from your regular expenses. He said Spend 50% on daily expenses and another 30% on things you like to do and want to be the part of them and save the remaining 20% for the long-term investments.

3.FINANCIAL GOALS

Before investing in mutual funds one must understand their financial goals and should be very clear about their financial plannings.  Retirement, child’s education, house purchase, etc. can be one of your financial goals which should be taken care of before investing in mutual funds so that it won’t affect your financial planning as well.

4.CHOOSING YOUR FUND SCHEME

Investors can choose their mutual fund’s scheme on the basis of how long they can remain invested in that particular scheme. So investors should ignore the long and short-term performance of the schemes and rather focus on how long can they invest into the scheme without affecting their financial plannings and financial goals. Investors can also take strategic investment plans to pool their money in mutual funds.

LEAVE A REPLY

Please enter your comment!
Please enter your name here