Treat Mutual Funds Like Equity Shares

A stock can be overvalued or undervalued, but the same analogy can't be applied to a MF portfolio. The fund manager selects valued stocks appropriately as per objective of the portfolio.

23 Feb, 2023 Sankunni K

Lower NAV, The Better

You should never invest in a mutual fund just because the NAV is low. As the fund becomes older, the NAV becomes higher.

23 Feb, 2023

Guaranteed Returns

There are not guaranteed returns in mutual funds. The returns generated from mutual funds will fluctuate as per the market volatility.

23 Feb, 2023

Making Decision Looking Only At Past Performance

It's true that a fund's past performance will give us a fair idea about the efficiency of the fund manager. But there's no guarantee that the fund will repeat the same or a better performance in future too.

23 Feb, 2023

Comparing Funds

When you compare two or more mutual funds, you should do that it with funds that belong to the same category. Right peers and right benchmark must be chosen for comparison. You cannot compare a small cap fund with a large cap fund.

23 Feb, 2023

Pausing SIPs Based On Market Fluctuation

If an investor get panicked in a fluctuating market, without thinking much he/she may follow the crowd when it's not actually necessary for him/her to do so. Remember, market has always rewarded those who remained patient with their investment.

23 Feb, 2023

Investing Without A Goal

Only a goal based investment will help investors to decide on the right allocation required for their portfolio. And following the goal religiously will help investor from getting affected by short term distractions.

23 Feb, 2023

Over Diversifying Your Portfolio

You must've always heard not to put all your eggs in one basket. That's true, it's always better to have a diversified portfolio. However, over diversification may result in underperformance of certain funds in your portfolio.

23 Feb, 2023

Investing Without Consulting A Financial Advisor

Consulting a financial adviser is not a waste of money if you don't have the time to do deep research in your investment portfolio. It's always better to consult a financial adviser rather than asking friends and family or invest only looking at the fund's past performance.

23 Feb, 2023

Not Monitoring Your Portfolio Periodically

You must always keep a close watch on your portfolio to ensure that it'd aligned with your financial goals. Markets are volatile in nature and several macroeconomic factors influence its performance and the returns.

23 Feb, 2023

Thanks For Reading!

Next: Canara Bank Jobs 2023: From Vacancy to Last Date, All You Need to Know