We all love ice cream. Don’t we? But we all have to agree that not all flavours are for everyone. Similarly, everyone knows that investing in Mutual Funds is good. But you can’t invest with your eyes closed. Probably, the only difference between buying ice cream and investing in a Mutual Fund is that if you pick up a wrong flavor of ice cream, you will end up losing Rs.100 or max Rs.200. But you can’t afford to do the same with Mutual Funds. So, don’t make these mistakes when investing in Mutual Funds.
It’s easy. Ask someone who has invested in Mutual Funds. Invest. But it’s important to understand that the small-cap equity fund that worked for your friend might not work for you.
YEAR’S TOP-RATED FUNDS
The thing with Mutual Funds is that the best fund of the year might fail to find a mention in the next year’s list. Always choose a fund that has delivered consistently over the last 5 years.
Never choose a fund that has delivered extraordinary returns over a short period of time. Especially when the markets were high. Always check long term performance before investing
Don’t go solely by the expense ratio. It’s important, but shouldn’t be the only criteria. A fund with a low expense ratio that has not performed consistently is not a good choice.
Always choose Mutual Funds based on your goals, timelines and spending power. If you do that, we are sure you will find your favourite flavour.
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*Mutual fund investments are subject to market risks, read all scheme related documents carefully.