Decide what percentage of your money you will allocate to mutual funds. If you'll be investing less than 15,000 to 20,000 Rs/- overall, many investors advise that all of your investments should be in mutual funds.
Step2:
Determine how many mutual funds you will invest in. Three to five funds is generally considered an adequate amount of diversification.
Step3:
Decide whether you'll deal directly with the financial Adviser or use a broker.
Step4:
Diversify the funds you buy in terms of the size of the companies in their portfolios and the businesses that those companies are in.
Step5:
Choose high-performance funds by using Internet resources and newspapers to pick those funds that have had the best performance over at least the last three years.
Tips & Warnings:
- Using a discount broker who sells no-load funds without taking a commission makes it easy to switch from one fund to another.
- A large group of mutual funds does not necessarily provide diversification because the companies whose stocks they hold will overlap.
- If you don't buy no-load funds whenever you can, you could lose a good deal of your returns - or even your principal - to commissions.
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For more details
Contact: Sriram
Phone No: 09986031067
Email Id: sriram.adviser@gmail.com
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