INVESTMENTS IDEAS FOR MUTUAL FUND & STOCK MARKET

Over the years, investing in mutual funds has emerged as a popular option among a vast population of investors with varied incomes and risk appetites as mutual funds have outperformed most investments avenues in last few years. However, there are many myths or misconceptions related to mutual fund investment which may result in a wrong investment decision.  Here are the myths: History will always repeat Everyone who tends to invest in mutual funds first looks at the historic performance of the fund and then decides to make the investment. Therefore we can clearly say everyone feels the future performance will be linked to the previous performance and will fall in line. If future was based on past, every analyst would have made money thick & fast which is clearly a myth. Lower the NAV, cheaper is my fund Commonly believed that when the NAV is lower, the fund is cheaper and hence will provide higher returns. NAV is nothing but the current market value of the por...

If you are a mutual fund investor, it would help you in having a diversified portfolio of funds. Diversification does not mean only investing in a number of schemes to minimise your mutual fund's portfolio risk. If you want to achieve true diversification, you need to invest in schemes having different stock holdings/securities, benchmarks, market risk factor, MF categories, etc. Therefore, whenever you are building up a diversified portfolio, you should look at all these parameters so that you can achieve significant improvements in the portfolio and thereby increasing your returns potential and decreasing risks while having the right asset mix. “Diversification basically means investing in a manner that failure in one security or an economic slump affecting one of them will not be damaging to your portfolio,” said Abhinav Angirish, Managing Director, Abchlor Investment Advisor. Here are few things you should know how investing in different mutual fund schemes helps in minim...