Tips for Investing in Mutual Funds – At Your Service
The saying is true that, Mutual Fund is a new age investment option which caters the investment needs of all the investors. Perfectly known for their high-yielding capability, this comes in various sizes and shapes. No matter what your financial goals are all about but including at-least one fund in your portfolio can help you gain the desired returns on investment.
First-time investor? Don’t worry, we have got you covered with some of the prominent tips for investing in mutual funds. A read:
- Goals: Investing in mutual fund is a long-term deal, therefore, the term should sync with your investment goals so that you can have an easy access to the funds before the event. FOR EXAMPLE: You have planned to buy a home 5-6 years down the line, and you stay invested into the same fund for the same years, thus, making you self-sufficient.
- Study: Investing in a mutual fund involves a considerable amount and thus, enough research should be done before jumping on any decision. Understanding the risks involved in the particular fund is important. To aid the purpose, you might end up studying online for the same which can be time-taking, but with Gulaq, the process will be economical. Let the team take care of your investments.
- Systematic Investment Plan: The best and highly recommended way to start with your initial investment is with a Systematic Investment Plan or SIP. The working of a SIP is just like a loan wherein you pay a fixed amount every month in exchange for number of units (depends on NAV). The difference is that in the loan you are clearing a debt, whereas in mutual funds you are building an asset over a fixed-term. Also, SIP is considered as financial discipline investment because it makes you invest a fixed amount over a period.
- Monitoring: Once you have invested, they keep yielding returns over a certain period and routine monitoring is not required. Once in a month monitoring can be done, just to gauge the sellability of the units.
- A Strategy: You need to have a good strategy and patience to taste better returns. An investment horizon for at-least 5 years is ideal for investors, reason being, in short-term equity markets are volatile, but in the long-term, they have headed in the upward direction. If you are confused between equity or debt funds, get in touch with the team of Gulaq, an online investment platform for mutual funds.
Thinking to start investing? A good thought!
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.