Mutual fund do's and dont's ...
Here's a breakdown of what to do and what not to do when considering mutual funds: Do: Know your risk tolerance: Before investing, assess your comfort level with potential losses. Mutual funds can range in risk from conservative to aggressive. Define your investment goals: Are you saving for retirement, a down payment on a house, or a child's education? Different goals have different time horizons, which can influence your fund selection. Diversify your portfolio: Don't put all your eggs in one basket. Invest in a variety of mutual funds across different asset classes (stocks, bonds, etc.) to spread out your risk. Invest for the long term: The stock market fluctuates, but history shows that over time, it generally trends upwards. Don't panic and sell your investments if the market dips. Consider a Systematic Investment Plan (SIP): SIP allows you to invest a fixed amount of money regularly (monthly, quarterly) which inculcates discipline and benefits from rupee-cost aver