Tips for Mutual Fund Investment

-
Investing in mutual funds calls for deciding between active or passive management, choosing where to buy funds, understanding fees and sticking to a plan.

Mutual funds are nothing but pool money from investors to purchase stocks, bonds and other assets to create a diversified portfolio beyond what the average investor can build on their own: Rather than buy individual securities, professional fund managers do it for you.

Why invest in mutual funds?

According to the Investment Company Institute. Retail investors are drawn to mutual funds because of their simplicity, affordability and instant diversification these funds offer. Rather than build a portfolio one stock or bond at a time, professional managers behind each mutual fund do it for you. Also, mutual funds also are highly liquid, meaning they are easy to buy or sell.

How mutual funds make you money

When you invest in a mutual fund, cash or value can increase from three sources:

  • Dividend payments: When a fund receives dividends or interest on the securities in its portfolio, it distributes a proportional amount of that income to its investors.

  • Capital gain: When a fund sells a security that has gone up in price, this is a capital gain. (And when a fund sells a security that has gone down in price, this is a capital loss.) Most funds distribute any net capital gains to investors annually.

  • Net asset value (NAV): As the value of the fund increases, so does the price to purchase shares in the fund (known as the NAV per share). This is similar to when the price of a stock increases — you don’t receive immediate distributions, but the value of your investment is greater, and you would make money should you decide to sell.

 Tips for mutual fund investment in 5 steps

  1. Decide whether to go active or passive. Costs and performance often favor passive investing.

  2. Calculate your budget. Different mutual funds have different minimum investments, so this can help decide which mutual fund to buy..

  3. Decide where to buy mutual funds. Find the right broker that offers the right fund for your budget.

  4. Understand and scrutinize fees. A broker that offers no-transaction-fee mutual funds can help cut costs.

  5. Build and manage your portfolio. Check in on and rebalance your mix of assets once a year.


To strat your investment just tap on the following link.

For free account click on the below link & submit your details -

https://kyc.profitmart.info:8443/onboard.aspx?type=2&branch=8693&fr=TO4UzltpZDvimF8UXcjsgQ%3D%3D


https://upstox.com/open-account/?f=JP9150

- Indicator Nivesh®

Comments

Post a Comment

Popular posts from this blog

Worried about falling rates of bank fixed deposits? Shift to debt funds.

-
Hey, falling rates of bank fixed deposits have raised many retail investors worries about generating higher returns? No worries at all, debt fund / bonds are the alternative for you. Recently, debt funds / bonds have gained significant traction among retail investors over the last few years due to higher return. Investors who know for sure that they won't need the money for defined time should go for FDs. However, those who want flexibility, higher return and liquidity should stick with debt funds. Debt funds can be redeemed on any business day while breaking a fixed deposit typically entails an interest rate penalty of 1%. It is very important to choose a fund with high credit quality to avoid any credit risk. Credit risk refers to the probability of default in principal and/or interest repayments by issuers of debt securities. Investors can reduce this risk by investing in debt funds having maximum exposure to sovereign/quasi-sovereign debt papers and/or to the highest-rated corp...
Read more

DERIVATIVES OPTION TERMINOLOGY

-
Image
  To start your investment just tap on the following link.   indicator.nivesh              PROFITMART                UPSTOX               +91-77381 33055 - Indicator Nivesh® - Proprietor - Pratik Marathe, MBA, CFA
Read more

How to make wise Investment decisions?

-
Investment decisions are perhaps the most important of all the financial decisions aa the outcome of these decisions determine the amount of cash flow for the future period. Investment decisions in this context refer to both short and long-term allocation of funds. Short-term investment decisions include the level of current assets (cash, bank account) which is necessary for day-to-day operations; whereas long-term investment decisions refer to purchase of fixed assets, Insurance, Mutual fund, Land, etc. A major aspect of the long-term investment decisions is the allocation of capital to investment proposals that will realize benefits in the future. Investment proposals necessarily involve risk, because future benefits are uncertain. Consequently, investment proposals should be evaluated on the basis of their expected returns and the level of risk involved.  Make wise Investment decisions by just three steps : Have a Plan } To start is very important. Do not procrastinate....
Read more