HOW TO SELECT BEST MUTUAL FUND FOR YOURSELF AMONG VARIOUS OPTIONS AVAILABLE WITH YOU

Mutual fund always been a wise decision to invest while planning for long term as well as short term goals. mutual fund sip or mutual fund lumpsum investments always been preferred as it contains the basic feature of liquidity and reliability which is the most sought benefit by the investors as a whole.

most of us worry about the plans and the company/AMC which offers that plan that which fund to invest and how to choose best performing mutual fund for us. Below mentioned points can help you out while finding the answers of your question.

1. Define your objective:

Defining objective means to be aware about your own need and preferences that why you need an investment, what type of goal you want that investment to relate with and are you planned enough mentally to stick to your objective.

2. Assess your risk taking capability:

As we all know mutual fund invest in securities or stocks which are to be traded in the capital or money market which have some risks associated with them so we should be very clear about the level of risk which we could bear while choosing for equity.balanced or debt portfolio. If we can take risk then we can generate returns accordingly.

3.  Time horizon:

This depicts the investment period or the duration in which we remain invested in the market so as to make our fund grow. more the time in the market ,more would be the outcome.

4. Liquidity requirement:

it tells us how often we need fund in coming future and how frequent we redeem the investment . this helps you to choose among the locked in fund or open ended fund.

5. Service provider:

This is last but the most important part which we neglect while planning for the mutual fund investment or the sip planning because till the time you choose the best service provider which may be your agent or the distributor , you cant be assure yourself for better allotment of your fund because an advisor or distributor is the person who do calculation and mathematical evaluation for the fund which you have selected on the basis of certain parameters given above. A advisor or the distributor ensures the timely in and out of the scheme and tap the market movement to guide you when to invest and when to book the profits.


IF WE KEEP ALL THE THINGS IN MIND WHILE PLANNING FOR MUTUAL FUNDS SIP OR MUTUAL FUND LUMPSUM, THEN WE WILL BE ON RIGHT TRACK ALWAYS.



Posted by,
Saket kumar singh
Lakshya wealth services

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