Always have realistic expectations about investment performance. Information available/quoted in various reviews is past performance. Remember that the past performances of the instruments may not be repeatable.
Investors should look for medium to long-term time horizon for investments in mutual funds (especially equity mutual funds). Investors should keep in mind that short-term gains from mutual funds attract short-term capital gains tax while the long-term gains are tax-free. Also, if you are switching from one fund to another, it involves transaction costs in terms of entry / exit loads. Investors should not look at mutual fund investments for the short term. Consider the fees/loads and taxes applicable on the investment.
Equity mutual funds invest in the stock markets, and statistically, it is proven that equities provide better results than any other investment instrument over the long term. But stock markets are volatile by nature and are influenced by many events and news inflows (domestic as well international). Therefore, it is advisable for investors to look at medium to long term (more than one year) timeframes while investing in mutual funds. This is because time provides a cushion to absorb all the short-term volatility and helps your investments grow due to market fundamentals.
Investing in systematic investment plans (SIP) of mutual funds is a good way to begin as it helps in planning your cash outflow well, averaging the entry price in the market, and you get the benefit of timing the market to a certain extent.
Investors should look for medium to long-term time horizon for investments in mutual funds (especially equity mutual funds). Investors should keep in mind that short-term gains from mutual funds attract short-term capital gains tax while the long-term gains are tax-free. Also, if you are switching from one fund to another, it involves transaction costs in terms of entry / exit loads. Investors should not look at mutual fund investments for the short term. Consider the fees/loads and taxes applicable on the investment.
Equity mutual funds invest in the stock markets, and statistically, it is proven that equities provide better results than any other investment instrument over the long term. But stock markets are volatile by nature and are influenced by many events and news inflows (domestic as well international). Therefore, it is advisable for investors to look at medium to long term (more than one year) timeframes while investing in mutual funds. This is because time provides a cushion to absorb all the short-term volatility and helps your investments grow due to market fundamentals.
Investing in systematic investment plans (SIP) of mutual funds is a good way to begin as it helps in planning your cash outflow well, averaging the entry price in the market, and you get the benefit of timing the market to a certain extent.
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