Want To Invest Wisely In Mutual Funds In 2017: Here's What You Need To Know

Investing in mutual funds is easier than investing in other means of investment. Still, investing in mutual funds is riddled with perceptions, opinions and myths. We take a look at 5 things no one should ignore while investing in mutual funds. 1. Investment strategy A fund’s investment strategy is important for you to decide whether the fund is right for you. Similarly, in the case of a debt fund, a fund that invests in instruments with very high average maturity can be volatile if the interest rate takes a sudden shift upward. 2. Track record and performance The track record of a fund – how long it has been around and how consistently it has performed over such period – must be an important factor for you to consider when you invest in a fund. 3. Ability to contain downside A fund that has delivered stellar returns may lose it all if the fund is unable to contain declines better than the benchmark in a falling market. 4. Time-frame to hold a fund Investors need to understand the kind of time-frame that different categories of funds call for, before choosing to invest in them. While equity funds, in general, call for a longer time-frame, debt funds have different time-frame horizons and it is important that you choose the one that fits your requirement. 5. Tax implications and load Investors need to understand the tax implications of a fund before investing in it. This is especially true in case of debt funds as pre and post-tax returns make a huge impact on the wealth generated. Read More: http://www.financialexpress.com/money/10-things-you-mustnt-ignore-while-investing-in-mutual-funds-in-2017/481444/

Comments

1. your reporter has very thick accent. it's not a bad thing you just need tell her to slow down so we can understand what she's saying. the only thing that was clear was the end where she's pushing the company.