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The mistake of discontinuing a Mutual Fund investment is when the market declines. Timing of the markets defeats the purpose of investing in mutual fund investment plans.
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The Mutual Fund Advisor in Delhi maximize our returns from Mutual Fund The mistake of discontinuing a Mutual Fund investment is when the market declines. Timing of the markets defeats the purpose of investing in mutual fund investment plans. Investment in a Mutual Fund should cover an entire market cycle to derive maximum benefit out of it. Few points to maximize returns from mutual fund investments in India are listed below: Invest over the entire life cycle of market The approach of staying invested over the entire life cycle of market is a good approach since it allows you to take capitalize lower prices as well as enables you to estimate the purchase cost over time. Hence, while exiting during market decline, one loses the chance of buying more funds at less cost. Link your SIP to your financial goals Some of your financial goals should be linked with the mutual fund associated with a systematic investment plan (SIP). This will help you to
correlate your timelines with the assured amount. The risks involved can also be adjudged at the same time. As you spend some time in market, you learn to reduce the losses in times of adverse situations in market. Increase the regular premium frequently As the inflation increases every year and so does the fund requirement. The SIP amount should also increase in the same proportion. This will increase your assured sum over the years and the impact of inflation on your systematic investment plan. Invest in STP and SWP When you are nearing your financial goals, you can choose SWP (Systematic withdrawal plan). This provides you flexibility to withdraw money at regular intervals over a period, hence ensuring your profits and your goals realization. You can opt for STP (Systematic Transfer Plan),where your money moves from moves from unstable assets to a more stable one. Invest in mutual funds from diverse sector The Mutual Fund Advisor Delhi should ensure that all the mutual funds are not targeting the same sector. For instance, if one of your mutual funds holds shares of banking sector then make sure that the other mutual funds in your portfolio are targeting petroleum or coal sector. Working on the above mentioned points, one can increase the SIP returns in a mutual fund investment while putting in relatively low cost of investment. The professional management of your funds and day-to-day cash conversions also come along as an added advantage along with mutual funds.