Setting investment goals
Mutual Funds Sahi hai… You may have seen this advertisement multiple times in TV/hoardings but are they actually right for you?
Well, they can be the best products to invest if you align your financial goals and choose the right set of funds.
A challenge every investor faces is to pick the right fund from lot of options. It is important to understand your risk profile, time horizon of investment, etc before investing in a fund.
Assume you are 55 years old and are saving for your retirement which is due in next 5-6 years. Upon your friend’s advice, you invested into a small cap fund. After 5 years, it may so happen that fund value declines and you may not get your invested money as well.
At this life stage and risk profile, you would have been better off investing into debt funds which are low risk in nature.
Remember, the fund you picked was not at fault. It simply didn’t match your needs. Generally speaking, you should lower the risk if you are closer to the goal.
Download the app now by clicking on Google Play link below. Learn everything about mutual funds on Fintra app.
