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Mutual Funds


Investing in Mutual Funds is a necessity and a trend. It is also the best way to earn that extra weight in your pocket with rising inflation, increasing lifestyle demands, and growing aspirations. But do you know the suitable investment method to achieve your goals? What strategy will you use to build a secure financial future?

The initial rule of Mutual Fund Investment is to set achievable goals. Besides, you also need to realise your cash flow needs and budget while factoring in the time horizon. Meeting your investment needs while increasing cash flow are some focus points. Follow these tricks to ace your investment:

Set goals

Before stepping into the investment world, set some goals. Have an idea of your requirements, how much corpus you require, and the realisation. It maintains focus and keeps track of investment growth. Goal setting is essential to a determined and planned approach.

Cash flow

Realise your cash flow needs and budget for the present and future, depending upon the family size, Loan instalments, rent, etc. Once you are clear with these, frame a budget including three essentials: needs, wants, and savings. Follow a basic thumb rule of 50, 30, and 20 for allocation.

Time horizon

This is an essential factor in any investment. Firstly, open a Demat Account with a Depository Participant registered with India’s Securities and Exchange Board. If you aim to stay invested for more than 10 years, investing in Equity or Stocks provides greater returns. Pick less volatile instruments like Debt Funds or Money Market Securities for short-term goals.

Risk identification

Since the market works in the bull and bear phase cycles, identify your investor type and risk appetite. While the bull phase is paradise, the bear one is a nightmare regarding returns. Stick to less-risky funds for low-risk appetites and vice-versa. In either case, do not forget to open a  Demat Account online through the DP website or app.

Long-term investment

To make the most of your investments, stay invested for a longer period. Consider the past five or 10-year trends for fund performance in each phase. Research the fund house and company before learning how to open a Demat Account. Ensure they pay the dividends frequently, with a positive stature and market presence.

Reviewing investment portfolio

Check the Mutual Fund Investment portfolio now that you are well invested and aimed towards your goals. Assess the market situation and weed out the underperforming funds. Spend time researching new investment options to earn higher profits.


Asset Management Companies manage the investments curated from a pool of investors in various avenues, including Stocks and Bonds, to meet similar goals. Fund managers are experts in guiding investors and ensuring promised fund performance. Review the services and performance before selecting the ideal fund house.


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