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What precautions should a first-time mutual fund investor take?

Dhirendra Kumar highlights some basic dos and don'ts for a first-time mutual fund investor

What precautions should a first-time mutual fund investor take?
- I.K Suman

Firstly, do not invest all your money at one go. Spreading your investments over a period of time helps you spread the risk. Secondly, do not select a fund based on its short-term outperformance, as in the long term, it may not be able to sustain the performance. It's important for first-time investors to select funds that provide steady returns. This will help them gain confidence and consequently, build resilience to the market movements. Hence, a balanced fund should be the right choice for you.

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