Let’s assume that you have been researching a lot on mutual funds and how to invest in them. Now, you are ready to invest your money in mutual funds. But do you know which mutual fund is right for you? Have you spoken to any mutual fund broker in Kolkata about investing? No? Go through the article below to get a basic knowledge on which mutual funds to pick and then get an advisor’s help.
There are some mutual funds that perform well in the short term and there are some that perform well in the long run. However, you have to understand what is good for before choosing to invest. So, here are two questions that you should ask yourself before choosing a mutual fund.
Should you invest in a short-term policy that performed well?
If you ask me, I would say that you should not invest in short-term mutual funds. Suppose a mutual fund portfolio has performed really well in the last five years. However, when you take a look at the top 20 funds that have ranked high that year, you will not see that particular portfolio. According to many mutual fund advisors in Kolkata, a mutual fund that is giving short-term results may rank after a few years. However, it is not possible for you to foresee the future and get to know which mutual fund portfolio will work well in the future. Hence, it is not a good idea to invest in a short-term policy.
Should you invest in a policy that did not perform well?
No matter how weird it may seem to you, my answer will be yes. I will explain to you why. Suppose when you are researching before buying a policy, you may see that one policy has not performed well in that particular year.
If you ask any mutual fund advisor, he/she will say that you should invest in that policy. If you are not sure whether to invest in a policy that has not given a good return on investment, do check the reports of the past years. In many cases, you will see that the mutual fund that has not performed well this year may have actually given a good result in the past years.
Checking the ranking of the past 10 to 20 years will give you an even clearer understanding. There are bad times in share market when policies that are performing well can also face a downfall. If the mutual fund has not offered good return in a particular year, check out whether it has been performing well for the last decade. If you see it has been, this is the mutual fund portfolio that you should invest in.
There are many mutual fund brokers who can guide you in choosing policies. So, if you are not sure what to choose, you better take help from the professional advisors. It is not that you should not research before investing. However, no amount of research can give the insight that an expert has. So, get in touch with some mutual fund advisor and make a wise choice.