How to make the most from Mutual Funds: Tips for salaried

How to make the most from Mutual Funds: Tips for salaried

Mar 21, 2023

Rajeev Kumar

Mutual funds can help salaried people in achieving their financial goals. But often they face a dilemma when choosing mutual fund schemes. Here are some tips that will help

Invest in Equity Linked Savings Scheme (ELSS) to save tax

Invest in short-term debt funds to build contingency fund

Invest in equity funds for wealth creation in the long term

Invest in debt funds for lumpsum investment and short to medium-term goals

While choosing a mutual fund scheme, always analyse and compare various schemes based on factors such as expense ratio, past and current performance, quality of investments in the portfolio, etc

It’s important to maintain an adequate level of diversification while investing in mutual funds.

Investors often feel that they need to put in a large sum of money to fetch substantial returns. That’s not true.

You can invest as little as Rs 500 every month through SIPs. You can always scale it up with an increase in your income.

Even a contribution of Rs 2,000 a month can fetch Rs 200,000 in 20 years if the annualized rate of return in 12%.”

Lastly, mutual fund investments are subject to market risks. Therefore, always consult a financial advisor to make the most from your investments.