When an investor has decided to invest in Mutual Funds, he needs to make a decision of which scheme to invest in– Fixed Income Fund, Equity Fund or Balanced and which Asset Management Company (AMC) to invest with?
Firstly, discuss freely with your advisor what your goal is, the thing that time-frame you’re alright with, and what your risk appetite is.
Decisions on which fund to invest in would be made dependent on this data.
In the event that you have a long term objective – say, retirement planning, and will assume some risk, then, at that point an Equity or Balanced Fund would be ideal.
In the event that you have a very short term objective – say, cash to be saved aside two or three months; a Liquid Fund would be ideal.
On the off chance that the thought is to produce regular income, a Monthly Income Plan or an Income Fund would be suggested.
In the wake of deciding on the type of fund to invest in, a decision on the particular scheme from an AMC would need to be made. These decisions are typically made subsequent to learning the AMC’s track record, suitability of scheme, portfolio details, and so forth.
Scheme Factsheets and Key Information Memorandum are two documents that each investor requirements to peruse prior to investing. On the off chance that one requirements detailed data, one should take a gander at Scheme Information Document. These are easily available at every Mutual Fund’s website.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No journalist was involved in the writing and production of this article.