Dos and Don’ts of MF investing

Mutual Fund Investing Do’s

Select the right scheme after giving due consideration to all factors like risks, investment time horizon, suitability to your needs Be clear about growth or dividend in a fund after consulting with your financial advisor.

Consider fund’s expenses because higher the expenses, lower is your post-expense return Always consider post tax profits because finally it’s the return after tax that counts Diversify into various kinds of mutual funds to lower the risks since not all assets like stocks, bonds, gold etc would rally at the same time Consider a fund house’s experience in managing money and giving good returns over the long term Review your investments at regular intervals and rebalance if you think that the returns are not as planned when you started investing

Mutual Fund Investing Don’ts

Avoid being too greedy about returns It’s not a very good idea to concentrate on short term returns. Remember most investments are to meet your long term investing goals Avoid looking at portfolio performance too frequently. In case of short term volatility and sub-par performance, frequent check at returns could make you feel jittery

Tools and tables

For an idea about the probable returns, you can use the mutual fund returns calculators available on various websites To estimate your future corpus size, use SIP (systematic investment plan) calculators available on various websites If you know how much money you need after say X number of years and have an idea of expected returns, use calculators available on the web to estimate how much you need to invest monthly to get to your target amount.

Mutual Fund Online Investing Link

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