Friday, 3 July 2015

MUTUAL FUNDS MUST BE A PART OF OUR INVESTMENT PLAN

Whatever your expectations, from our investments, can be achieved through mutual funds. Mutual funds make investing easier as the risk of timing the market is shifted to an expert fund manager.

To further simplify your investment decisions -

Ask yourself, what is good investment?

A common belief is investing in fixed deposit or post office schemes that offer a fixed rate of return. But inflation and taxes eat into your savings. A good investment is one that beats these two permanent enemies of investing.

Have a habit of setting your goals

Before starting to invest, it is essential to have a well defined goal for your investment. Clarify if the investment is for short, medium or long term?  It can be anything, like saving for child’s further education, buying a house or car or simply, saving for retirement.

How to select your investments?

Based on your goals and risk appetite, you can consider a combination of assets that can allow you to beat inflation and taxes. Mutual funds provide access to multiple asset classes. Investing in them is easy and gives transparency. You can invest in stock market through experts in Equity diversified schemes, bonds and money markets through fixed income schemes and in gold through Exchange Traded Funds (ETF). Our ability to take risk and our time horizon, determines the schemes and overall portfolio for investment.

HOW MUTUAL FUNDS WORK?

  1.   We invest in mutual fund and receive units in return.
  2.   Expert fund managers invest our money in assets like onds, stocks, gold or currencies based on scheme objective.
  3.   All profits accrued from buying & selling of assets start adding to Net Asset Value (NAV) of our fund.
  4.   When we need money, we can sell the units at prevailing market NAV.
  5.   Money gets credited to our bank account directly. In 3 working days and for debt funds in 1 day.




 









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