WHAT MUTUAL FUND SHOULD I CHOOSE?

We know how confusing investments can be. You have your hard earned money at stake. A decision to make. Money goals to set and achieve.

Once you decide to invest in Mutual Funds, you have to decide on which scheme to invest in – Fixed Income Fund, Equity Fund or Balanced and which Asset Management Company (AMC) to invest with? For a layman, these are all nothing but jargon words.

So let us help you break it down into the simplest explanation.

Most importantly, talk to your advisor freely about what your objective is, what time period is suitable for you, and how much can you really risk?

Because ultimately, these are the factors that will help you with your decisions.

Now how to break down your goals? Let us explain.

Long Term Objective

Let’s say, you have retirement planning on mind, and you are willing to take some risk, then we recommend you to invest in an Equity or Balanced Fund. This would be ideal for you.

Very Short Term Objective

Let’s say, you want to keep the money aside for a couple of months; then your ideal choice is a Liquid Fund. Go with it.

To Generate A Regular Income

Let’s review that your idea is to generate a regular income, then a Monthly Income Plan or an Income Fund is what we recommend for sure.

Now that you know your goals and risk taking ability, next comes the decision on the specific scheme from an AMC to be made. An AMC's track record, scheme suitability and portfolio information are usually taken into account before a decision is made.

Now getting to the technical part of this. How do you decide on a scheme?

Go through the ‘Scheme Factsheet’ and ‘Key Information Memorandum’ before investing. These documents are easily available on the Mutual Fund’s website.

In order to receive detailed information, one should check the Scheme Information Document.

Now wasn't that easy to understand?