Check your portfolio to have the goals achieved.

For the safe future and keeping requirements in mind, people love to save some amount every month. However, after saving the required amount every month, one needs to invest it rightly. Usually, it is seen that people save well, but when it comes to investing, they do not have much knowledge and hence feel confused as to where to invest and what will be the return. For that purpose only there are many experts in the market who can prove of great help to the investors.

mutual fund

Check your needs:

Before going for the investment in the market, you must check your need and by when you will need what amount. If you want to buy a car after two years, you need to save the amount calculating the investment and return together that can help you get the required amount after two years. This way, one can reach a specific figure that he needs at a fixed period. One also needs to focus on the return that is offered by the company and the amount that he can invest. If requires, one needs to check with the website of the company and experts as well as general people in the market who may have invested in the concerned scheme. For those who want to go for wise investments, it is necessary to have checked all the information before investing only.

Check the requirement of fund:

To check the requirement of funds, one needs to check his goal and also consider the increase in value over a period. Hence one needs to know how to track mutual fund investments under different schemes that can help him get the required amount at the defined time period. There are also some calculators available in the market which can help one get the desired amount at a specific time. In case one does not have access to the same, he needs to meet an expert and ask him for the same. He may have a calculator or know how to calculate the same so that one can achieve his goal.

Selection of scheme and fund:

Various companies have various schemes and fund options that one needs to consider while going for investment. One can go for a one-time investment in a scheme or go for a systematic investment plan which can help him get the amount invested at regular interval and still gain the best of the advantages which one may not have in one-time investment also. there are also growth and dividend options available with every plan, and one can opt for any of the options as per his liking. In dividend plan also one can go for the dividend payout or reinvestment options which can help one to have the best return on his investment.

How investment options differ?

In one-time investment, one can have the units at current NAV only. In future, if the NAV goes up, he may get the advantage, and if the NAV reduces, he may have to incur a loss if he wants to redeem the units. For different investors, there are different options, and hence, it depends on the user’s profile. One can go for a normal mutual fund or can also invest the amount in ELSS which offers tax benefits. However, the ELSS or mutual funds with tax benefits have lock-in period where one cannot ask for the amount for a certain number of years, which may be 3 to 5 years. If one thinks that he may need money at any point of time, he may go for an option with the open end where he can withdraw the amount at any stage. However, he needs to see that this option is for medium to long term only to have a good return on the invested amount.

For the large investors who love to keep the spare amount in this option, there is also liquid fund available which can offer a better return than the bank interest also. In this option, one can easily invest or redeem the units and get the required amount as and when needed.

The options to invest:

In this age for a retail investor, there are offline as well as online options with the help of which one can invest the amount. The common way here to invest is the offline mode where one can pay the amount by check and also provide required documents in hard copies. This option can be used when one invests via a broker, broking firm or company. There is also another option to invest in a mutual fund, which is investment online. In this option, one can log in to the website of the concerned company and fill the application form online. The documents one needs to provide are also uploaded on the site by soft copies. The amount that one wants to invest can be transferred to the company by any of the available options for online fund transfer.

After investing the amount, the mutual fund company allots required units to the investor as per his investment and NAV of the concerned units. These units are shown under a folio which is as good as account. The statement of the folio has folio number and all the relevant details of the investor and investment. The statement has a date of investment, name of scheme and company, the option of investment that one may have opted for, the amount invested, bank details and KYC as well as pan card, contact detail of the investor with address and total amount as on the concerned period. Hence in one statement, one can know each and every detail of investment under a particular folio. The NAV is the base of the investment, which differs every day.  One needs to check the NAV at the time of redemption. If the NAV is high compared to when he has bought the units, he may get some profit else he may have to incur a loss, and hence one must not redeem the unit at this stage. In case one has gone for SIP, he may come out with profit only. 

Post a Comment