There’s always some money you can save each month, if you scrimp on your expenses a bit. Like, taking public transport instead of the cab, eating out less, not buying that dress you aren’t likely to wear more than twice. Think about it. There are so many avoidable expenses which can turn into savings. And once you invest in mutual funds, you’ll shock yourself with the sizable returns.

It’s an easy 1-2-3 decision-making process

1. SIP or Systematic Investment Plans allow you to invest small savings on a regular basis. This mode of investment has historically given greater returns than lump sum investments in Mutual Fund Investment Plans. It’s easy on the pocket too.

2. Always look at the taxes when you invest in mutual funds. Because a very sizable chunk of your bounty could simply go to the taxman. There are a variety of Mutual Fund Investment Plans that not only give good returns but are exempt from Income Tax under some sections. Look for them.

3.Don’t overlook the Mutual Fund charges because under one heading

 or another, you’ll be gifting away your income from the investment to the mutual fund. Now why should your money enrich someone else? Therefore, clarify all fees and applicable charges.

A little diligence and you can be comfortably rich, without much inconvenience. Call that mutual fund agent right away!

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You’ve heard from your friends and colleagues about the benefits of the Systematic Investment Plan. You were shocked when they mentioned the rates of return. And now you are roaring to invest in Mutual Funds. What’s the first question you ask: What can you tell me about Mutual Fund Investment Plans?

However, in effect, it’s a wrong question to ask!

Firstly, you need to understand how to shortlist a Mutual Fund as per your individual requirements. There’s no guarantee that investing in the same MF, as your colleagues, will generate the same amount of profits for you.

Follow these 4 steps:

1. Match your asset allocation to the Mutual Fund: How much risk can you take? What is your investment horizon? Don’t overstretch your finances in greed.

2. Check the consistency of past performance: Understand how good is the fund, or the fund manager with making profits over a long period of time. You don’t want some fund that makes great profits one year, and great losses in the next.

3. Calculate all costs of investment: While the rate of return may be attractive, fund costs might eat up most of your profit. Go through them carefully. Compare those with other funds in the same category.

4. Don’t put your eggs in one basket: If you diversify your investment in multiple funds, you can minimise the risk of your losses somewhat.
Now you can easily pick the mutual fund that fits your needs best.

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