How to invest and gain profit from Mutual Funds

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How to Invest and Gain Profit from Mutual Funds
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Mutual Funds - Definition and Introduction
Mutual funds are a pool of money contributed by
many investors who wish to park their funds into
investments. Investing in mutual funds can be a
lot easier than buying and selling individual
stocks and bonds on your own. Mutual funds allow
allocation of investment across stocks, bonds,
money market instruments and other types of
securities. Diversifying your investments ensures
that you dont have all your eggs in the same
basket, thus balancing your earnings and risk
ratio. Risk here refers to the fluctuations in
Net Asset Value (NAV) of the investments, which
can sometimes be stable and other times really
volatile. Apart from just various types of
funds, it is also important to know the
performance of different sectors in which mutual
fund investments can be made, like IT,
infrastructure, telecom, healthcare, to name a
few.
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How to Invest?

• Though mutual fund investment has caught up much
  popularity in the last 2 decades, but still many
  fret and find tough to plan their investments.
  Certainly, investing in mutual fund schemes is
  subject to market risk and requires you to stay
  updated on the same to see how various funds are
  performing. In situations so confusing people
  often refer to Asset management Companies, who
  have experts in investment management, popularly
  known as Fund Managers/ Money Managers/
  Investment Managers.

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Who are Fund Managers?

• The Fund Managers devise investing strategies and
  portfolio management while they take care of the
  trading activities. They basis their sound
  knowledge of the market, performance of funds and
  your financial goals cum risk capacity, handle it
  all. Also, a fund can be managed by one or two as
  co-managers or even more as a team.
• Of course as a payment towards their expert
  services a percentage amount of the funds
  average assets being managed is paid to them as
  fee.

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How to gain profit from Mutual Funds?

• There are no set rules to gain out of your Mutual
  Fund investments, but certainly there are a few
  tips that can lead you to a better management of
  your investments. Some of them being as follows
• Diversify and Have a Right Mix of Funds
• While you select your funds, be wise to choose
  basis your risk profile and time horizon. So, if
  you have one investment into a high risk fund,
  make sure you have another part in some other
  more stable and less risky funds. This keeps you
  away from incurring sudden and all losses if
  performances go downhill.

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continued..

• Redesign Your Portfolio
• If you have an extensive portfolio that youve
  not bothered to look at since long, it is
  advisable to make it more targeted and easy to
  manage. If youve invested in equity, ensure
  theres enough exposure to different market
  segments across large, mid and small cap that too
  in the right proportion. Its important that your
  investments are aligned as per your risk
  capacity, time horizon and financial objectives.
  Also, it would be wise to detect non performing
  schemes nearing their maturity, in comparison to
  the consistently performing ones and redesign
  your portfolio.
• Taxpayers Should Invest in ELSS
• Equity Linked Savings Scheme is good option for
  taxpayers and make for a simple way of investing
  in stock market and save tax at the same time.
  Being equity oriented schemes ELSS fund has
  potential of better returns in comparison to
  other options under section 80C.

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• If you want to invest in mutual funds visit
  Reliance Mutual Fund.
• Or call us Toll Free No. 1800-300-11111Tel
  No. 022 30301111
• Click to connect with us on our social
  profiles-
• https//plus.google.com/Reliancemutualfunds-ind
  ia/posts
• https//www.youtube.com/user/RelianceMF2010/vide
  os
• https//www.facebook.com/RelianceMutualFund
• https//www.linkedin.com/company/reliance-mutual
  -fund

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Thank you !