Is it good to invest money in a mutual fund without any specific goals other than high returns
What do you want to avoid when investing in mutual funds?
5 mistakes to avoid while investing in Mutual Funds
- No clear financial goals or plans: …
- No budget planning: …
- Not knowing your risk profile: …
- Over diversifying your profile: …
- Investing with a short-term approach:
Should I invest everything in mutual funds?
All investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. Since they hold many company stocks within one investment, they offer more diversification than owning one or two individual stocks.
Which mutual fund is best for beginners?
List of Mutual Fund for Beginners in India Ranked by Last 5 Year Returns
- Sundaram Aggressive Hybrid Fund. …
- Motilal Oswal Long Term Equity Fund. …
- IDFC Balanced Advantage Fund. …
- DSP Dynamic Asset Allocation Fund. …
- Aditya Birla Sun Life Tax Relief 96 Fund. …
- Motilal Oswal Dynamic Fund. …
- BNP Paribas Substantial Equity Hybrid Fund.
Why mutual funds are bad?
However, mutual funds are considered a bad investment when investors consider certain negative factors to be important, such as high expense ratios charged by the fund, various hidden front-end, and back-end load charges, lack of control over investment decisions, and diluted returns.
How long should you hold mutual funds?
If you are actually looking at equity funds to help you achieve your long term goals then you at least need to give yourself a holding period of 8-10 years. For debt funds, the outlook on rates should be your key driver for holding period.. Unlike equity funds, the debt funds do not really depend on long term holding.
When should I take mutual fund profits?
They said that most ideal time for booking profit in mutual fund portfolio is when you are nearing your financial goal. However, there are some other occasions too, when one should book profit in mutual fund portfolio. Such timings are portfolio balancing or in the case of financial emergency.
Can I lose all my money in mutual fund?
With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.
Are mutual funds safer than stocks?
Advisor Insight. A mutual fund provides diversification through exposure to a multitude of stocks. The reason that owning shares in a mutual fund is recommended over owning a single stock is that an individual stock carries more risk than a mutual fund. This type of risk is known as unsystematic risk.
Which mutual fund is low risk?
List of Low Risk Mutual Funds in India
| Fund Name | Category | Risk |
|---|---|---|
| L&T Arbitrage Opportunities Fund | Hybrid | Low |
| BNP Paribas Arbitrage Fund | Hybrid | Low |
| Axis Arbitrage Fund | Hybrid | Low |
| View All |
Which is safest mutual fund?
As debt funds invest in government Bonds, Money market funds, etc., they are relatively safer.
- Franklin India Ultra Short Bond Fund – Super Institutional Plan.
- Essel Liquid Fund.
- Nippon India Ultra Short Duration Fund.
- Aditya Birla Sun Life Savings Fund.
- ICICI Prudential Ultra Short Term Fund.
What is the safest type of mutual fund?
Liquid Funds:Considered to be the safest type of mutual fund, liquid funds invest in liquid instruments with short maturity i.e. less than 91 days. They provide 1% or 2% higher returns than savings account with almost no risk.