If you are investing somewhere for the first time and if you have chosen a mutual fund (MF) to invest in it, then it is not easy to invest in it for the first time. But, you do not need to worry, for the first time in this news we are telling you about the things related to investment. Wherever you choose a mutual fund to invest, it should be based on your goals. In addition, the investor must decide how long he wants to invest in MF, and to what extent he is willing to take the risk.
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Time-based goal One can choose to invest in corporate bond funds or banking and PSU debt funds for a period between 2 to 7 years. If your target is for more than 7 years then you can choose the option of equity mutual fund.
Be prepared for risk If a person is going to invest then he should be ready for the risk. Along with this, SEBI has made it mandatory for all MFs to have a risk absorber which states the level of risk related to investment. Therefore, you can choose the same type of MF according to which you want to invest.
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Type of fund If you are opting for an equity fund, then in that case you should have a look at the Consistent track record. You should find out that there are strong processes and systems to follow stock selection, risk control. Past performance of the fund manager and the brand will help. In addition, the asset allocation of the benchmark index should match the investment objective of the scheme.
Started via SIP Systematic Investment Plan (SIP) is considered better for investing in mutual funds. Mutual fund experts believe that this is the best way to invest repeatedly in the SIP market. At the same time, you can invest in SIP on weekly, monthly and three months basis. Along with this it is according to your convenience.