Choosing the right type of mutual funds is described as the first step to begin investing in mutual funds.
If you are a first-time investor you probably need guidance on where to put your money and how much of it. Mutual funds are flexible and liquid investments that can be redeemed at any given time, with the exception of ELSS or Equity Linked Savings Scheme funds.
Choosing the right type of mutual funds is described as the first step to begin investing in mutual funds, according to a ClearTax, a financial consultancy firm, report.
“Broadly speaking, for the first-time investors a balanced fund or debt fund (dynamic bond fund or income fund) would be a good option to begin with. These are funds that will give you better-than-FD returns,” ClearTax said.
Through a carefully calculated process, investors will have to narrow down searches for portfolios that suit individual risk appetites.
“Select a fund on the basis of its long-term performance. A fund that has earned good returns over different time periods would be a better choice than a recent outperformer,” ClearTax said.
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