Wednesday, May 29, 2013
Friday, May 10, 2013
How to WIN the mutual fund game ?
Just go for three funds. Any more only add to complexity, and likely lower your returns.
The fact is, a single mutual fund is itself a fair diversification.
The fact is, a single mutual fund is itself a fair diversification.
- If the investment is for short-term, go for debt funds
- If the investment is for mid- term, go for hybrid funds
- If the investment is for long-term, go for equity funds
Debt funds provide safety of capital but the
returns are relatively low. When you invest for shorter periods,
priority is safety of capital over returns hence debt funds are
preferred.
Equity funds give you scope to make higher returns provided they are invested for longer periods. For investments that are long-term, inflation is the major cause of worry. Equity funds have the power to blunt the effects of inflation.
Define the purpose of your investment. If the purpose is to meet life goals like higher education, retirement, marriage, purchase of home, etc call it as core needs. If it is for general wealth creation call it as satellite needs.
Money is like a seed, and if a person invests it or gives to charity, it will come back to them.
Equity funds give you scope to make higher returns provided they are invested for longer periods. For investments that are long-term, inflation is the major cause of worry. Equity funds have the power to blunt the effects of inflation.
Define the purpose of your investment. If the purpose is to meet life goals like higher education, retirement, marriage, purchase of home, etc call it as core needs. If it is for general wealth creation call it as satellite needs.
Money is like a seed, and if a person invests it or gives to charity, it will come back to them.
Wednesday, May 1, 2013
Subscribe to:
Posts (Atom)