Saturday, February 23, 2019

Wealth creation

Wealth creation with mutual funds.

REGULAR INVESTMENTS IN MUTUAL FUNDS HELP IN CREATING A GOOD CORPUS.

In today time, mutual fund (MF) investments is the best way for wealth creation. However,knowledge and time are very important when it come to investing in MFs. One should have the knowledge about the MF market and enough time to monitor fund performance. Long-term planning is important when it comes to mutual fund investments to earn huge returns.

>> DIVERSIFY FUNDS

One should remember to invest in all three major asset categories-- stocks,bonds,and cash. If an individual is investing in more than one.

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Long-term planning is important in mutual fund investments to earn huge returns

asset category, then the risk of losing money is quite less as market conditions that cause one asset category to do well,often cause another category to give poor returns, and vice versa. Also, the ideal way is to diversify funds: invest money in miscellaneous schemes to keep the balance. One can invest in large-cap mutuals fund where hundreds of stocks are combined in one place. The risk of losing money in such an investments is extremely low, making it a worthwhile opportunity.

>> EXPERT SPEAK

As investment should also be aware of the regulatory changes and accordingly has to make changes in the portfolio. If you have the experience and expertise to do the selection of the fund, then it's great, else, it is wise, to consult a qualified financial adviser and then do the investment. A financial adviser will help to analyse the financial goal and timeframe that the investor has to set and can accordingly guide him or her, whether it is realistic,measurable and achievable. For the first-time investors, investing the first-time investors, investing through systematic investment plan (SIP) is the best medium. Even investing a small amount can help to build a large corpus. It is the most disciplined way to save money and earn returns. When an investor has the right guidance, then he can create an investment portfolio himself with proper asset allocation. If the proper process is followed by having frequent consultations with financial advisors, the the investor is better placed to achieve his or her goals.


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