Awareness Of Mutual Fund From KKP Capital MK Prabhagaran - Tips For a Beginner

Awareness Of Mutual Fund From KKP Capital MK Prabhagaran - Tips For a Beginner

For a first time investor in MFs, it is important to make a sensible first choice. Mutual Fund Advisor leads the way.

   

 First time investors in Mutual Funds act in the face of imperfect information and often get overwhelmed by uncertainties characterizing the investment situation. But theres more to Mutual Fund investing than market timing.

first Step for Success..

The first thing an aspiring unit holder must do is to establish what type of portfolio he wants to build. In other words, to decide the right asset allocation. Asset allocation is a method that determines how you invest your money in different investments with the proper mix of various asset classes. Remember, the type or class of security you own i.e. equity, debt or money market, is much more important than the particular security itself.

The popular thumb rule for asset allocation says that whatever the investors age, he should keep that percentage of his portfolio in debt instruments. For example, if an investor is 25, he should have 25% of his investments in debt instruments and the rest in equity. However, in reality, different circumstances and financial position for each individual may require different allocation. Portfolio variable is another factor that one needs to understand to practice asset allocation. These are age, occupation, number of dependants in the family. Usually the younger you are, the more riskier the investments you can hold for getting superior returns.

How to Select the right fund/s?

Next, focus on selecting the right fund/s. The key is to select the fund/s based on their investment philosophy and consistency in terms of returns. To ensure you are selecting the right type of funds that are appropriate for your needs, consider following:

Determine what your financial goals are. 

Are you investing for Future retirement? A childs Future? Or for current income? 

Consider your time frame. Do you need money in three months time or three years? The longer your time horizon, the more risk you may be able to take. 

How do you feel about risk? Are you in a position to tolerate the ups and downs of the stock market for the possibility of higher returns? It is necessary to know your own risk tolerance. It can be a guide for choosing the right schemes. Remember, regardless of the potential returns, if you are not comfortable with a particular asset class, you should consider other options.

If you looking for the best Mutual Fund Advisor to visit their website(www.mkprabhagharan.com) and get more knowledge for your Fund investments.