anuragmukherjee28
Moderator
Investing in mutual funds is not always luck. It also depends on the research you do beforehand. Here are some things to consider - my opinion)
1) Fund history: The older the fund, the better. This means that the fund has been around for a while and has a track record of performance.
2) Rolling returns: Don't just look at the CAGR (compound annual growth rate). Also consider the rolling returns, which are the returns over a shorter period of time. This will give you a better idea of how the fund has performed in recent years.
3) Sectors and companies: Look into the sectors and companies that the mutual fund has invested in. This will help you understand the fund's risk profile and whether it's a good fit for your investment goals.
4) Liquidity: How easy is it to liquidate your investment? Some funds are more liquid than others. This means that you can sell your shares quickly and easily if you need to.
5) Risk: How risky is the mutual fund? This will depend on the sectors and companies it invests in. Choose a fund that's a good fit for your risk appetite.
6) Exit load:Some funds charge an exit load if you sell your shares within a certain period of time. Make sure you understand the exit load before you invest.
7) Compare different funds: Don't just invest in the first fund you come across. Compare different funds to find the one that's right for you.
8) Tax savings: There are some tax savings mutual funds available. These funds can help you save taxes on your investments.
9) AUM: The AUM (assets under management) is a measure of the size of the fund. Larger AUMs tend to be more liquid and have lower fees.
10) Invest for at least 3 years: Mutual funds are a long-term investment. Invest for at least 3 years to get optimal returns.
1) Fund history: The older the fund, the better. This means that the fund has been around for a while and has a track record of performance.
2) Rolling returns: Don't just look at the CAGR (compound annual growth rate). Also consider the rolling returns, which are the returns over a shorter period of time. This will give you a better idea of how the fund has performed in recent years.
3) Sectors and companies: Look into the sectors and companies that the mutual fund has invested in. This will help you understand the fund's risk profile and whether it's a good fit for your investment goals.
4) Liquidity: How easy is it to liquidate your investment? Some funds are more liquid than others. This means that you can sell your shares quickly and easily if you need to.
5) Risk: How risky is the mutual fund? This will depend on the sectors and companies it invests in. Choose a fund that's a good fit for your risk appetite.
6) Exit load:Some funds charge an exit load if you sell your shares within a certain period of time. Make sure you understand the exit load before you invest.
7) Compare different funds: Don't just invest in the first fund you come across. Compare different funds to find the one that's right for you.
8) Tax savings: There are some tax savings mutual funds available. These funds can help you save taxes on your investments.
9) AUM: The AUM (assets under management) is a measure of the size of the fund. Larger AUMs tend to be more liquid and have lower fees.
10) Invest for at least 3 years: Mutual funds are a long-term investment. Invest for at least 3 years to get optimal returns.
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. Investments is always forward looking not backward looking. Mostly investor see past return of the sector or fund but failed to understand that it may or may not perform well. Thus here comes the art factor.. Stock Markets is supreme and bigger. It has its own language if we are able to understand what it wants to convey we may get better benefits. Mutual Funds are meant to understand that language and do the job for investors. Now one need to find Fund Manager who understands the Market Language better and bet on that... If you cannot find it you will always struggling to get better results.. so what is the solution. Take consultancy or expand you knowledge. Try understand the flavour of the Market and Fund then deploy. Or still seems tough to then WhatsApp me to understand better. Good Luck
