Which Is The Best Mutual Fund To Invest?

“Which is the best mutual fund to invest?” This is the most asked question by most of my WhatsApp Subscribers.

Before answering this question, let’s ask yourself a few other questions like, Which is the Best Mobile? Which Shoe Is The Best? Which Ice Cream Flavor is Best?

All these questions have one thing in common, that is their answers vary from person to person depending on their requirements – The same answer applies to our ‘most asked question’ also.

Which is the Best Mutual Fund To Invest?

Like, to know which Mobile Phone is best you need to know your Usage requirement, Budget, Operating System, etc. Similarly to know the best mutual fund to invest in, you need to know the following things first.

Time Horizon

For Investing in Mutual Funds it is very important to know for how long you will remain invested in them, With the time horizon, it is decided that how much you should invest in equity mutual funds. Remember to let compounding play its role in your wealth creation, the longer you will remain invested in equity funds like at least 10-20 years the better results you will get.

Risk Appetite

Risk Appetite is your willingness to take risks on your capital in order to generate better returns on your investments. Like investing in Equity Funds generate better returns than bank FD but they also have volatility risk involved, which may or may not be suitable for your risk profile.

Asset Allocation

Based on these parameters, Your Asset Allocation and then Fund Selection is done based on their Consistency and Fund Management.

Regular Review

However, apart from this, a Regular Review of your Portfolio is also required to make sure that with a change in time – your goals, risk appetite, Asset Allocation & Fund Selection all remain aligned.

Conclusion

Don’t follow the herd and invest based on random suggestions on Social Media or your Friend/Relative. Make sure you have analyzed the above parameters and based on that you are selecting funds to invest your hard-earned money.

If you are not sure how to do that then you can contact your financial advisor or Click: gurpreetsaluja.com/invest if you want us to analyze your profile and help you start investing in Mutual Funds through us.

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