The Best Mutual Fund Scheme - How To Choose - Get Professional Guidance from Mr MK Prabhagharan

The Best Mutual Fund Scheme - How To Choose - Get Professional Guidance from Mr MK Prabhagharan

It is the most asked question in mutual fund forum: Have I picked the right mutual fund schemes? And guess what? We mostly struggle to answer this simple query because the person often does not provide the necessary details. For example,  how do you tell whether a porfolio full of the best mid and smallcap schemes is ideal for a person without knowing his/her risk profile or investment horizon. If the person has a high risk tolerance, the portfolio would work for him. Similarly,  since he/she is investing in schemes with higher risk element, she/he should also have longer investment horizon.  Are you ready to Mutual Fund Investment, then you get professional guidance from Mr Mk Prabhagharan, Mutual Fund Advisor in Karur for best investment options.   

That is why we are attempting to put together a simple guide that would help these investors how to choose an ideal equity  mutual fund scheme. To begin with, you should identify your goals, investment horizon to achieve them and your risk profile. 

Your should go for equity schemes if you have: 

a) long-term goals 

b) investment horizon of five years or more 

c) you have high risk appetite 

Now that you are qualified to invest in equity mutual funds, you have to go a little deeper and find out exactly how much  risk can you tolerate. In other words, are you a conservative, moderate or an aggressive investor? The answer to this  question would decide what kind of equity mutual fund scheme can you choose to invest.

a) If you are a conservative investor, you should invest in only equity-oriented balanced schemes or largecap mutual fund  schemes. 

b) If you are moderate investor, you should invest only in largecap and multicap schemes, they are also called diversified equity.

  

c) If you are an aggressive investor, you can pick up midcap and smallcap schemes. You can also add sectoral scheme if you  have sound knowledge about the sectors. 

Many investors use a combination of schemes to create a mutual fund portfolio. For example, some investors make a  combination of large, mid and smallcap schemes to make a mutual fund portfolio. However, they carry out the task without  realising the composition of the portfolio should be in line with their risk profile. For example, a large exposure to a  sector scheme or a smallcap scheme would increase the risk associated with the portfolio. In short, choose schemes only if  they match your risk profile. And you should be mindful of your risk profile even while adding schemes to your portfolio.

To know more query about mutual fund investment and how to choose the mutual fund scheme visit www.mkprabhagharan.com, Mutual Fund Advisor or call us on +91 98943 33189 or email your query @ vslkarur@gmail.com

Courtesy: http://bit.ly/2A2Gygu