Tips Prior to Investing in Mutual Funds

by | Apr 13, 2018 | Investment Services

Mutual funds have been gaining immense popularity in the investment industry. The interest of Indians for investing in mutual funds has risen gradually with the number of returns they deliver. This is evident with a report indicating a growth rate of 15 percent every year in mutual funds. The faith and confidence of retail investors for investing in mutual funds has increased with the strict regulations of Security and Exchange Board of India (SEBI).

Mutual fund investment has seen a steady rise from the year 2014. Investment in mutual funds has been at record levels with the mutual fund industry crossing Rs.16.46 trillion in December 2016 and expected to have reached Rs.20 trillion in the year 2017.

However, if you are thinking of investing in a mutual fund, here are some quick things you must think of before investing.

Determine your goals

It is important to identify your goals before going forward with the investment. Determine how much investment you can invest in mutual funds. It is then necessary to spot the period for which you can invest- either short-term investment or long-term investment. Also, take into consideration the amount of risk you can take before investing. Once identified, you are set to invest in mutual funds.

Decide on a scheme

Numerous mutual fund schemes are available in the market. From equity funds to debt funds, many schemes are listed for you to choose from. Check for the risk involved in each scheme available in each of the mutual funds and pick a scheme that is synonymous with your goals. The mutual market experts like Quantum Asset Management that holds an AUM (Assets under Management) of Rs.1,254 crores offer top mutual fund schemes.

Choosing a mutual fund investor

If you are a beginner, it is always advisable to hire the services of a fund manager or a fund house. You have high probabilities of losing money if you try investing without the help of an expert. They have exact knowledge of the market, the current market trend and the best mutual funds to invest in. So, it is better to reap good returns by choosing a skilful mutual fund manager.

So, take a step forward to earn big by investing in mutual funds.