Have a financial plan to achieve your investing goals
01-Feb-2011 •Research Desk
I want to invest Rs 1 lakh in a mutual fund. Please suggest the right approach and the best fund that I can invest in?
Lump-sum investing is not the best way to invest in mutual funds. You should look at investing regularly through systematic investment plans. Before you start, you must have a financial goal or need. This approach will help attain the desired clarity on the investment objective. You may have goals such as building a corpus for the down payment for a house or planning for your retirement or a child’s education. Select a fund that will work in sync with your investment objective and is highly rated. Look for a fund that is consistent with a proven past-performance track record. Also analyse the fund’s performance over the long run in both bull and bear markets. For instance, if your investment horizon is over five years you can safely consider investments in a mix of large cap and large- and mid-cap funds.