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Updated by nimisha-karnik on Feb 16, 2017
Headline for What you must know before you invest in mutual funds!
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What you must know before you invest in mutual funds!

If you have been working a few years, chances are quite high that you have started wondering about the investment options ahead. There are many places you can think about, but investing and choosing the most relevant or in fact - the best option for your goal, is most important. Mutual funds are a great idea to make your goal possible, especially if you are struggling with a single source of income and looking at the various needs that are long term or short term.

If you plan to invest your money as early as you can, you would be preparing yourself for the future by just looking at the compounding interest and being able to multiply your wealth over a long investment period. So, what are the things you should consider before you invest for #mutual funds dividends?

1

Mutual fund sponsor:

Always look to invest in a fund house that has a great reputation and where the investment ideas are. Look at the other schemes that are performing of the fund agency. Also, look at the ranking of the agency as compared to the other popular options. Having a performing fund is very important when you are choosing where to invest in.

2

Tax implications or benefits:

Investors need to always look to invest in schemes that give tax benefits over your period of investment. This would bring out the real advantage of investing for mutual fund dividends.

3

What is the point of investment? :

The objective of investment is crucial while deciding where to place your money; you must read to know the goal and the investment plan that has been made by the agency. In case there are specifics with the plan to invest in debt or gold or a mix of all, it would obviously give you a clear idea on the growth that is possible.

4

How risky is your investment? :

You need to analyze the risk that is at hand and one of the first things you have to look at the NAV return that is expected. One must remember that mutual funds are linked to the stock market and hence there is a risk associated with it. The behaviour of individual assets is important to know the maturity period and how well it would perform. In case you have kept a time period of 2 years or more, debt funds that have shorter portfolio maturity are better for quicker turnaround payouts.

5

Conclusion

There is every chance of growing your money if you research and plan your #investments well. With the right planning, you can get mutual fund dividends to make your money grow.