If you are investing somewhere for the first time and even if you have chosen mutual funds (MF) for investment, it is not easy to invest for the first time. But, you don’t need to worry, we are telling you the investment for the first time in this article. Whenever you choose mutual funds to invest, it should be based on your goals. It will require the investor to decide how long he wants to invest in MF, and to what extent he is willing to take risks.
Be prepared for risk
If anybody is going to invest, he should be prepared for risk. SEBI has made it mandatory for all MF to have a risk riskometer that indicates the level of risk related to investment. Therefore, you can choose the same kind of MF you want to invest accordingly.
Time-based goals
For a period between 2 to 7 years, corporate bond funds or one of the banking and PSU debt funds can be selected for investment. If your target is for more than 7 years, you can choose the option of equity mutual funds.
Types of Funds
If you are electing an equity fund, you should take a look at the constant track record. You should find out if there is a strong process and system to follow stock selection, risk control. The previous performance of the fund manager and the brand will help you. Further, the asset allocation of the benchmark index should match the investment objective of the scheme.
Start with SIP
Let me tell you that the systematic investment plan (SIP) is considered to be better for investment in mutual funds. Mutual fund experts believe that this is the best way to invest repeatedly in the SIP market. You can invest in SIP on a weekly, monthly, and three-month basis. This is as per your convenience.
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