Mutual Funds investment: 7 tips for sustained portfolio growth
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1. Explore different types of funds
Are available in various formats, each responding to a unique set of investment requirements. Equity, debt, hybrid, and index funds represent only a few options.
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2. Diversify your investment
By diversifying your investments across sectors, asset classes, and geographical areas, you can protect your portfolio against market volatility.
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3. Invest regularly through SIPs
SIPs serve to build disciplined investment habits, mitigate the impact of market volatility, and take advantage of rupee cost averaging.
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4. Review your portfolio regularly
It is vital to constantly examine your investment portfolio to ensure it aligns with your financial goals.
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5. Be cautious, remain invested
Mutual fund investments are ideal for long-term financial goals. Markets can be turbulent in the short term, but remaining invested over time can help you.
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6. Assess fund's performance
Past performance provides insight into how a fund has handled market fluctuations. Examining the fund's performance, such as 1-year, 3-year, and 5-year returns.
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7. Evaluate expense ratio
The expense ratio refers to the annual cost mutual funds charge their investors. It includes management fees, administrative charges, and other expenses.