What things do you need to consider while choosing a mutual fund scheme?
The Organization of Mutual in India has come out, according to this report, Rs 21260 crore was invested in equity mutual funds in June 2024 through SHIP. After this, the growth of the mutual fund industry has increased. 61 Lakh Crore 61 Lakh Crore This is the common fund industry in India at the end of June 2024 Due to the excellent performance of Mutual Fund, the interest of investors in the fund industry is increasing.
If you are also a member of any fund scheme. Or if you are planning to do a lump sum then this is for you, in this we will tell you that for investment, this is a method for investment. Yes, from anywhere at any time, why have you started fund investment?
You can see all the investments from your Jet Fund expert and know about the external portfolio feature. Before choosing any fund, you should know how to analyze the fund yourself. By doing the analysis myself, I mean that your Today most of the investors are investing in equity mutual only. This fund scheme is more risky than tech fund schemes and liquid mutual schemes.
Before choosing any mutual fund, you should know how to analyze the fund yourself.
Let me tell you a simple formula for how much allocation you should have in equities. Subtract your investment from 100 and invest that much money in equity mutual funds. Suppose your age is 25 years, then 100 – 25.
75% of your investment should be in equity. Mutual 75% of your investment should be in equity funds. If your age is 50 years, then your allocation in equity funds should be 50% and if your age is 75 years, you have turned 75 years, then your allocation in equity should be 25%. It should not be much. You can either keep the remaining amount in bank HD or do debt mutual.
This allocation is done according to your age. Time is of great importance in equity investment. A 60 year old investor is a 25 year old investor. An investor cannot take more risk because a 60 year old investor has a shortage of time. If your focus is capital light then you can invest in large caps and if your risk appetite is high then you can invest in midcap and small cap mutual fund schemes. So, we have talked about self analysis, now let’s see.
What things should be kept in mind before identifying a mutual fund scheme Needed
First of all let’s know whether the mutual fund scheme is open ended or closed ended open ended fund scheme i.e. in which you can invest money anytime and withdraw money anytime. Close ended fund scheme where you can invest and redeem the fund. Restrictions are an example of closed ended fund schemes. You can invest money in a tax saver scheme anytime but cannot withdraw the money before 3 years.
Tax-free fund schemes have a locking period of 3 years, after this See What is the past performance of a fund scheme? Yes, we judge a fund scheme on its returns, how has the performance of the scheme been, has the scheme out-performed its benchmark or given returns less than the benchmark, but here in this It is important to note that there is no guarantee of future performance.
There has been a bull run in the Indian stock market for the last three-four years.
For this reason, some fund schemes have doubled the money of their investors in the last 12 years, but past performance is no guarantee of future returns.
It is not such that fund schemes will double the money of their investors in the next two years. If you look at the returns of fund schemes for 5, 7, 10 years, then you can also get a regular income under dividend option from fund schemes. So if you want regular income from a fund scheme then decide on dividend option and if Do not want regular income. You want your money to keep compounding.
If you are in a cumulative option, then focus on growth option. There is no guarantee of dividend in mutual. After this, pay attention to the fund management strategy of the fund manager. Yes, how are they generating returns? Are there fund managers? What fund management strategy are they following? These are the specific fund managers. This is why it is important that you are associated with an expert, an expert who talks regularly.
Before investing in a mutual fund scheme, see what returns this mutual fund scheme has given in PEST.
You will get this expert from the fund manager. Yes, jet fund experts regularly talk to the fund manager and if you want to know about the fund management strategy then talk to your jet fund expert today before identifying the fund schemes. Look at your financial goals. If your financial goals are one and a half to two years away then you can invest in a Balanced Advantage Fund or Multi Asset Allocation Fund.
If your financial goals are three to five years away then you can invest in a Large Cap Multi Cap Fund. And if you want money after 10 or 15 years, then you can invest in midcap and small cap fund schemes with high risk strategy. Before investing, see how far are your financial goals and which fund scheme is suitable for those financial goals. Portfolio diversification is another consideration for
To choose a fund scheme: If your portfolio consists of only large cap fund schemes then perhaps your portfolio needs a mud cap or small cap fund and if there is no thematic fund scheme in your fund portfolio then perhaps your portfolio needs If you need a thematic fund scheme, then before selecting a mutual fund scheme, take a look at your comprehensive portfolio. How to design a portfolio.
Which fund schemes are right for you? Do you want someone to review your portfolio? All facilities are available. You can get your existing portfolio reviewed by your Jet Fund expert.