It is primary to have your Financial Plan before starting to invest.
This helps benchmark portfolio performance against the Financial Plan. In absence of a Financial Plan, one tends to get influenced by the hearsay on good or bad returns and that mostly leads to unsure switching or exit from regular investments.
Let this New Year be an opportunity for earning higher yield on your investment by way of informed, predictable and reliable Mutual fund Options.
The need for investment in Mutual funds would vary for Beginners, Intermediate and Experienced.
For Beginners, the primary focus would be:
· Safe and predictable Investment
· Aggressive returns – Equity Growth funds
· Start a habit of regular and periodic investment to create a large pool
· Focus on SIP
For Intermediate, the need would be:
· Review and identify higher yielding funds
· Churn to accelerate returns
· Stay invested on performing funds and grow the Pool
· Top Up on performing funds
For Experienced, the requirement would be:
· Conserve the investment pool with monitored and safe funds – Large Cap funds
· Stay invested on performing funds and grow the Pool further
· Churn to accelerate returns
Practically, every trending ‘best’ may not be the best solution for you. You should always choose a scheme that matches your Financial Plan, time period and risk appetite.
