Simple Step 1: Know your fund Try answering this question. Do you know the objective of every fund that you have invested in? Probably not! Take for example a large equity diversified fund which belongs to a well known fund house. It follows an index plus style of investing and invests at least 60% of its money from a selection of stocks in the BSE 200 Index. The fund has a large cap bias and hence is suitable for those investors who can take medium to high risk (you take risk when the outcome of an event that you undertake is not certain. In investments , risk could lead to less than expected earnings or even erosion in the investment value). When you know the objective of a fund, it is easier for you to set an expectation and align the fund selection.
See original here:Â
Simple Steps to help you to select the right mutual funds
Related posts:
- Cash-rich Mutual Funds play cautious
- Mutual funds could be your best option
- Mutual funds shying away from bulk deals
- Mutual fund route safer for risk-averse investor
- Morgan Stanley MF launches debt funds in India
Like this post? Post Comment, Download and Subscribe RSS
