Mutual funds offer you a wide range of investment options across the asset classes, be it equity or debt, and even within the sub-categories of asset classes like mid-cap stocks, large-cap stocks etc.
The evolution of financial markets has opened a wide range of investment options before the investors, wherein they may choose to investment product to suit their financial goals, risk profile and investment strategy.
Investing in mutual funds through Systematic Investment Plans (SIPs) helps the investors to inculcate financial discipline into their lives by allowing them to invest regularly in the mutual fund scheme of their choice. The investors may choose the mutual fund scheme as per their risk appetite, financial goals, and investment horizon, and register a SIP therein to make periodic investments.
While making regular investments is a healthy financial habit, it is prudent to set aside some amount for meeting any financial difficulties. Most of the financial advisors will advise you to hold an emergency fund of around six times your monthly expenses to meet the contingencies of life.
A gold Exchange Traded Fund (ETF) is an investment option that tracks domestic gold prices. A single gold ETF fund unit will be equal to 1 gram of gold.
It is rightly said that investing is an art. While many investors know ‘how to build a Mutual Fund portfolio,’ but the real need is to know ‘how to build an ideal mutual fund portfolio.’ This article will aim at guiding you about constructing an investment portfolio that suits your risk profiles and your financial goals.
Prudent financial planning involves listing down the financial priorities and then steadily working towards achieving the financial goals in the desired time frame. While you may have already taken your first step towards investing towards a healthy financial future by registering a Systematic Investment Plan (SIP), it is equally important to review the investment periodically. The performance review of the investment portfolio would allow you to align your financial priorities and financial goals.
Systematic Investment Plan (SIP) allows you to invest a fixed amount into mutual fund schemes on a pre-determined periodic frequency. You can instruct the bank to auto-debit the from your account specified dates and invest in the pre-specified mutual fund scheme. This investment cycle happens automatically on a recurring basis irrespective of the market condition. This helps an individual to consistently move towards creating an investment corpus and take a step closer to achieve his/ her financial goals.
Just as it is important to start investing early, it is paramount to review your portfolio periodically. Regular assessment allows you to review the performance of the various funds and accomplish your financial goals. Here are four crucial parameters against which you may compare your mutual fund portfolio
Financial advisors will generally advise you, “do not keep all your eggs in one basket.” Such an investment action is denoted as diversification in the parlance of personal finance. Diversification refers to making an investment portfolio across different investment segments and asset classes to reduce the overall investment risk.
