Everyone has their own way of investing and saving. Where people invest, it mainly depends on how much risk they can take. Those who stay away from risk, they adopt the method of small savings schemes or bank FDs, while those who are not afraid of taking risks, turn to the stock market in search of good returns. In the last few years, the number of people investing money in the stock market in India has increased rapidly. Along with this, the demand for mutual funds has also increased.
These funds can be of great use
You too must have invested in mutual funds or must have seen friends doing so. Mutual funds not only provide inflation-beating returns, but also prove to be very helpful in meeting your financial goals in the long term. However, along with this, investing in mutual funds also has its own risk. In such a situation, the question arises that how to choose the right mutual fund, so that not only get good returns but also the investment is safe. That is what we are going to tell you today.
Past performance does not guarantee
The most important factor that people pay attention to while choosing a mutual fund is the returns. It is not wrong either, but investing money just looking at the returns can be heavy. If a mutual fund has given good returns in the past, then it is not a guarantee that it will give good returns in future as well. Market experts often advise investors to avoid this mistake.
Avoid being influenced by others
The second biggest mistake investors make is being influenced by names. To become. In today’s time, from Facebook to Instagram and YouTube, there are many such financial influencers, who are also called fininfluencers. Usually such people promote a particular mutual fund scheme due to vested interests. For this, he also uses influential figures. If you are also going to invest money in mutual funds, then it is important to avoid this mistake as well. Do not fall under the influence of any influencer or the names given by him.
Check this point well
It has become ‘what not to do’ matter of. Now let us tell you what exactly you have to do… The reason for the success of any mutual fund scheme is not the fund house or fund manager, but the secret of its excellent returns is hidden in its method. Before investing money in any mutual fund scheme, you should see what is its process. How the funds of the concerned scheme are to be used. After examining this thoroughly, it will be clear in front of you whether the concerned mutual fund scheme is of your use or not.
Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.
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