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.
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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