Mutual Funds

72°
Talk-Of-The-Town
TruthSeeker
I am looking forward to investing in mutual funds.

Can you guys list some resources that I can consult before doing it.

Are there any dos and don'ts?

How often should I invest. Is there any time period that you recommend?

Is it better to buy mutual funds directly or use an app like mfcentral, coin etc?
Top Comments
Deal Cadet Deal Cadet
Link Copied

Buy direct plans.

Go for growth plans instead of dividend plans.

Invest regularly (every month when you get your salary). Do a SIP if you are not disciplined. Otherwise, buy what you like each month. 

Don't invest in index funds. Any other decent fund would perform better than an index fund.

If age is on your side, go for aggressive ones.

Check their churn ratio and expense ratios. Read about them to understand better and compare funds in terms of their performance vs these ratios.

Dont worry about having too many funds or folios. People advise not to have too many funds, but it's your choice. The only disadvantage is that you need to review more entries in your report. Use a good portfolio tracker and you will see the info upfront.

Review your funds every 3-4 months and switch if needed (i.e., for better performing funds as per your analysis). Remember that your profits up to 1.25L per year is untaxed. You can switch within this profit range to avoid taxes.

All the best.

9 Comments  |  
9 Dimers
  • Sort By
Deal Cadet Deal Cadet
Link Copied

Buy direct plans.

Go for growth plans instead of dividend plans.

Invest regularly (every month when you get your salary). Do a SIP if you are not disciplined. Otherwise, buy what you like each month. 

Don't invest in index funds. Any other decent fund would perform better than an index fund.

If age is on your side, go for aggressive ones.

Check their churn ratio and expense ratios. Read about them to understand better and compare funds in terms of their performance vs these ratios.

Dont worry about having too many funds or folios. People advise not to have too many funds, but it's your choice. The only disadvantage is that you need to review more entries in your report. Use a good portfolio tracker and you will see the info upfront.

Review your funds every 3-4 months and switch if needed (i.e., for better performing funds as per your analysis). Remember that your profits up to 1.25L per year is untaxed. You can switch within this profit range to avoid taxes.

All the best.

Talk-Of-The-Town Talk-Of-The-Town
Link Copied
Thank you very much. Do you know any books that I can refer to so that I can go prepared while choosing funds
View 3 more replies
Heart of Gold Heart of Gold
Link Copied

You can try ET money to compare mutual funds.

Deal Cadet Deal Cadet
Link Copied

instead of mutual fund, invest in ETF. 

Deal Lieutenant Deal Lieutenant
Link Copied

FIRST IS FIRST

LEARN A LOT BEFORE DOING ANYTHING:)


put in small amount and test waters first DONT TAKE ALL SUGGESTION:) you need to LEARN FIRST 

so read a lot about it:) 

replyuser
Click here to reply
Reply