4 Secrets To Get Maximum Benefits from Mutual Funds

Mutual Funds are great for both long-term and short-term investments

There is a plethora of great mutual funds to invest in. You can easily start a SIP. However, the one size fits all strategy doesn’t work if you are looking to get the most of your investment. Based on the investment objective, risk appetite and investment period, an investor can easily create a personalised portfolio of different mutual funds to enjoy maximum benefits.
A smart investor should assess the following things before investing:

1. 1. Your investment objective:
      This could be growth for your money, wealth protection or a mix of both.

1. 1. Your goal:
      Having a goal helps you stay focused and ensures that you achieve your dream. You can start an SIP or invest a lump sum amount to achieve goals like a retirement fund, car, foreign vacation, marriage and child’s higher education among others.

1. 1. Your risk appetite:
      Your risk appetite is basically your investing personality. How you feel about taking some calculated risks for high returns determines your risk appetite. Most people expect higher returns but at the same time are not open to the idea of taking some risk. So, figure out if you have a low, balanced or high-risk appetite.

1. Your period of investment, based on your goal:
   Knowing how far away your goal is, tells you how much time you have left to create funds to achieve the goal. This helps in planning your investments effectively and efficiently.

The answers to the above points will then determine which funds you should invest in to maximize your gains. It can also help you decide whether you should invest 100% in an aggressive equity fund, or a balanced fund or play safe with debt funds.

Lastly, it’s good to remember that‘benefit’ is a very subjective term. For an investor with low risk appetite, 10% would be high returns while the same for an adventurous investor would be a loss. So, plan well to get the best out of your investments.

View the top performing Mutual Funds for maximum benefits or get a personalised portfolio at Mintwalk.

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Happy investing!