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Tips and Tricks: Follow THIS formula to get strong profit in Mutual Funds
Mutual funds are a better option for such people. If you are also looking for this kind of investment, here is a trick through which you can earn strong profits.
Highlights
- Mutual Funds have very low risk.
- If the Beta scales more to 1, the fund is volatile.
- Beta is less than 1, the risk is low.
New Delhi: Investment is a lifelong affair and one has to devise an efficient plan to invest. The number of people investing in the stock market in India is increasing day by day. People want to earn maximum profit with less risk. In such a situation, investors also look for other investment options except for stocks, in which the risk is very low, but the profit is much higher.
Mutual funds are a better option for such people. If you are also looking for this kind of investment, here is a trick through which you can earn strong profits. (Also Read: LIC Jeevan Labh Policy: Invest Rs 233 per month, get Rs 17 lakhs in return)
Beta trick
As per the experts, while investing in mutual funds, definitely pay attention to its beta. Suppose two funds have given the same return at 12 percent, have both taken the same risk? The answer is no. Now if you want to know who has taken which level of risk, you have to do a beta check. If the beta is more than 1, the fund is volatile and has taken a lot of risks. (Also Read: Invest in THIS scheme of LIC, get direct benefit of Rs 1 crore; check details here)
Whereas if the beta is less than 1, the risk is low. If Fund 1 has a beta of 1.4 and Fund B has a beta of 0.7, Fund B is better as it has given you higher returns in the market with less risk.
How to check?
Here's the step-by-step guide to check the beta of any mutual fund in your portfolio:
- Go to any mutual fund and click on it.
- Click on the holding option.
- Click on Holding Analysis.
- Now the Beta interface opens in your system.