A Sebi Registered Advisory Firm

CapitalStars provides the Best Mutual Fund service according to customer needs.

SEBI: INA000001647

Reasons Why You Should Invest in Mutual Funds



Should I invest in Mutual fund ? in your mind. Ask yourself below simple questions.

Why I'm investing in Mutual Fund ? - For return or because someone suggested you.
If returns - Whats your tenor of investment? - Tenor here means time for which you will surely not require this amount. Let say like investing in PF or PPF.
If your tenor is less than 5 years - You need to go for Debt funds.
If more than 5 years - You can go for Equity funds.
If you plan to invest in Debt fund only go for Liquid funds. The rest can be to complex without basic knowledge of the product.


If you plan to invest in Equity, start with Large caps and gradually move to Mid Cap. Best is a combination of both.


Basic Risk / Loss of Mutual Fund

Total Expense Ratio (TER) -
It is a measure of the total costs associated with managing and operating an investment fund / mutual fund. Lesser the better ! It plays a critical role in a Debt fund, as without correct knowledge of TER you might end up making lower returns.

Fund Managers -
Every fund is managed by a fund manager and most returns are depended on his Alpha generation than the choice of product. You might have seen the ranking of Funds on many websites but, there are ranking for fund managers too.
 
Tax Complications - 
Where there is Money - there is Tax. So be sure you know taxes applicable on the fund returns. Many investors lost most of their profits in taxes. Prefer EEE (exempt- exempt- exempt status on the income earned) products over mutual funds. 

Load - 
Most funds have locking period, exit before locking period is chargeable. So think twice before investing.
Asset Allocation - Fund creates different produces, if not selected wisely you might end up without appropriate asset allocation.
Constant review - 
You might have seen advisors advising to invest for the long term and then asking you to constantly review your investment after certain year gaps. Imagine yourself jumping from funds to funds for the next 25 - 30 years. Will your money really compound?

 And the last but not least Power of Compounding

Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

LATEST STOCK UPDATES

Investors can directly buy mutual funds on stock exchange

Capitalstars investment advisor Till now investors looking to buy directly had to go to a fund house website or independent websites. ...