InvestorQ : Is there any check list I should follow before investing in a particular fund of my choice?
Suresh Patil made post

Is there any check list I should follow before investing in a particular fund of my choice?

Answer
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Aastha Awasthi answered.
2 years ago


A check-list is a note of things that should be taken into consideration when it comes to investment. This varies from person to person as the risk- appetite differs for everybody. However, there are few checklists one should look forward before investing.

  1. Risk-appetite is the main factor while deciding where to invest and what to choose. An investor that is ready to take a high risk to get high-return can invest in medium cap stock, while risk-averse investor should opt for blue-chip companies.
  2. One should check the performance of the stock or mutual funds for better clarity.
  3. Invest in different types of funds like equity, debt, liquid, etc.
  4. Generally, it is said that one should allocate debt funds with proportion to one’s age. For example, an investor of 25 years should invest 25% of his funds in Debt funds, while the remaining investment should be done in equity funds.


It is advised to every investor that they should control their emotions because generally happens that most of the people buy at tops when the bubble is about to burst and end up buying at a high price and when the market takes a downtrend, they speculate a lot and sell at market bottoms. So one should control emotions and stay invested, patiently. Invest for long-term to avoid the small market dip and wait for the market to bounce back.