InvestorQ : how to invest in mutual funds to get best return at start
samir made post

how to invest in mutual funds to get best return at start

Answer
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nishi Shah answered.
6 months ago


It is always the right investment that fetches your best returns. Unfortunately, no one can define what the best investment is, as it basically varies from investor to investor. For example, for an investor with high-risk appetite and an all equity-based portfolio shall be best or 80% equity and 20% could be the best portfolio. On the contrary, for investors near retirement, investment in debt funds or fixed income generating instruments could be the most suitable.

So, to know what is best for you, you have to make a self-assessment test according to which you can decide the right portfolio. Few things that you can decide before making investment shall be:

1.Risk Appetite: This is the most important thing to decide before making any investment as it is an important factor in deciding the debt, equity mix. Decide for yourself how much risk you’re willing to take for your investment.

2.Investment duration: Generally, mutual fund investments give the best returns in the long-term or medium-term. Liquid funds are, however, suitable for short-term investment.

3.Return expectations: Make sure that you choose the portfolio according to your return expectations, monitor their performance closely and regularly.

4.Initial investment: Decide how much you’re willing to invest, at what intervals and whether or not to increase the investment regularly.

Once you decide all these factors, combine them and look for the portfolio that best suits your needs. If you are not well-versed with all this, you can take the help of professionals as well.

Also, mutual fund investments are considered more appropriate for a long-term perspective.