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This is a regular question that I get asked at meetings with investors and mutual fund distributors. It is even more common today as markets have moved up to a record high and valuations have pushed significantly higher. This question presupposes that I have the skills to discern the risks in the market. Blessed as I am with a worrying & skeptical nature, I see risks all the time. But, the problem with risk is that the biggest and market disrupting risks are those that I cannot see. Worse they are the unknown unknowns.

As we all know, there are various types of mutual fund schemes catering to different investment needs. And having a right mix of mutual funds may aid in building a corpus over a period of time. Likewise, while investing in value funds it would lead to diversification in investment style and unlock the potential of wealth creation over medium to long run.

Value Investing is dead was the oft repeated conclusion of investors who were being fed by commentaries of the investing community in early 2020. The conclusion was backed by not only short term performance data of 1 to 3 years performance but even looking at performance data of longer period of 10 years of value as style as compared to growth.

A father's role in his children's lives cannot be quantified, but it can only be expressed in emotions. A father makes several sacrifices for his children and family but seldom expects anything back. Beneath everyone’s success is a strong foundation of the dreams and aspirations of a father who believes in only taking care of his family and many times not even expressing their feelings and emotions to the family. 

A Father-child relationship is one of the most beautiful relationships in the world. However, it is often felt that a father may not even express their emotions and feelings with their children yet silently work towards fulfilling all the dreams and aspirations of their child. Traditionally, financial matters often flow from top to bottom, with your Father taking care of your savings, etc., during the early stages of your lives. 

Independence Day opens up a flood of emotions in every Indian. While the Indian freedom struggle teaches patriotism, grit and sacrifice, you can also learn valuable investment lessons. Following are some valuable lessons that we Indians can learn from the country's freedom struggle and its leaders.

Determination and Perseverance Pays

"Swaraj is my birth right, and I shall have it."

Raksha Bandhan signifies the strong bond between brothers and sisters. Sisters tie Rakhi and wish for the wellbeing of their brothers, and in return, brothers promise to keep their sisters protected throughout their life under every circumstance. Brothers also present a gift as a token of their love for the sister. 

The investment horizon plays a vital role in investing. Talking specifically about mutual fund schemes, equity mutual funds may be more suitable for long-term financial goals. Equities may be volatile over the short term but carry the potential of wealth creation over the long term.

Systematic Investment Plan (SIP) is a facility offered by the mutual funds to investors. Here one can opt to invest in a mutual fund scheme on regular basis by registering a standing instruction, wherein mandated amount by the investor is deducted automatically from the bank account and invested in the mutual fund scheme as specified in the registration process.