How to select best mutual funds is job of the Advisor, always ask for advice. Mutual funds are one of the most popular investment options. Mutual funds allow investors to invest through systematic investment, therefore providing opportunities to make profits over a period.
Besides growing wealth, mutual funds offer various benefits to the investors that should be taken into consideration while choosing a mutual fund plan. It provides the benefit of diversification of portfolio and asset allocation.
Investors to have a balanced portfolio of carefully researched and chosen stocks managed by experienced fund managers.
The Scheme Information Document (SID) provides with detailed summary and insight on the fund scheme and the risks that apply on that particular fund. The level of risk varies from one plan to another.
Risk
The investment portfolio, fund manager and his decisions in picking up stocks, the underlying assets, and so on also affect the performance, risk and returns of any fund. The mutual fund investment vehicles are subject to market risk and rates, and hence may even perform below par and not offer the expected returns.
Source- Clear Tax, ET Money
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