When you listen to agents, you naturally become too intimidated by all the figures, financial laws, and theories that they rattle off. So, you are not sure how to invest in mutual funds in India, or whether you should simply stick with a bank Fixed Deposit (FD).

Don’t get confused with all the data flying around. Simplify, and you’ll find that there are certain basic points that easily cut through all the financial jargon, so that you get the information that you really want. What you really want to know about a mutual fund is:

● What is the return on it

Higher the risk, greater the returns. Usually, the risk diminishes from Equity to Hybrid to Debt type of mutual funds. Consider the historical performance of a fund, and the returns that the fund manager has generated for other mutual funds he has managed.

● What is the tax status

You must also check what are the tax exemptions available or, what are the tax liabilities arising from investing in your chosen mutual fund.

● What are the fees & charges

Entry loads, exit loads, switching charges and other sundry deductions by the mutual fund could completely gobble up your gains, if you’re not watchful.

With that, you know how to assess your chosen mutual fund. Use the same criteria to compare mutual fund performance before deciding where to invest your hard-earned money.

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Two investment dilemmas bother every enlightened investor: How much to allocate for the future in the best case scenario, and in the worst-case one. To be blunt, the question is: “How to make sure that my family lives happily -- with me and after me?”

In the worst case scenario, you are looking for insurance. And that means you need the guidance of a Human Life Value Calculator. It’s a simple online tool. Just enter these details:

● Annual household expenses

● Annual income

● The number of years your family should get an income

● Expected rate of inflation

● Expected returns

● Outstanding liabilities

● Current investments and assets

● Current value of insurance

The Human Life Value Calculator then calculates your net worth, how much income your dependents will need and consequently, how much insurance you have to take on.

But let’s look at the brighter side now. What are the regular instalments that you need to pay to invest in mutual funds? Systematic Investment Planning or SIP is proven to give great returns that will one day bring your dreams to fruition.

Utilise the helpful SIP Return Calculator India mutual funds offer. Enter these details:

● Your regular investment amount

● The frequency of investment

● The number of years of investment

● The expected annualised returns

Press the ‘Calculate’ button to find out how much you have invested, and how much will you get on maturity.

Your dreams and your family are under a safety net now. Congratulations!

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