Mutual Fund Investment. Mutual fund investment has been very beneficial during the Corona period. Investors have also earned a lot by investing in it. According to experts, such a situation does not happen every time. A big fall in the market can also sink your rupee. In such a situation, a lot of things need to be kept in mind before making Mutual Fund Investment. So that your earnings are more or less loss.
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Select a direct plan
According to experts, investors need to invest in direct plans instead of regular plans of mutual funds. It earns 1 to 1.5 percent more than others. The reason behind this is that investors do not need to give brokerage in direct plan. It depends from one plan to another.
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Find sip option
Investors should avoid investing the entire rupee in mutual funds simultaneously. According to experts, there is a need to make small investments in mutual funds through a systematic investment plan ie ASIP. There is also less risk and higher returns.
Diversify your investment
Mutual fund investors should diversify their portfolios. This helps in reducing the level of risk. Investors should invest in small-cap, mid-cap and large-cap funds as per their risk appetite. Investors should invest 60 per cent of their funds in small-cap, 20 per cent mid-cap, 10 per cent index fund and 10 per cent in large-cap.
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What to invest in or equity
Experts believe that investors should keep the option of investing in both debt and equity open. As the age increases, the risk-taking ability decreases. In such a situation, investors should reduce their age from 100 before investing in equity. That is, if the age is 30 years, it is better to invest 60% of the portfolio in equity. Equity always gives higher returns than debt but the risk is also high.
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