Look at past performance to gauge how the fund has fared historically. It's a vital indicator of potential growth.
Define your financial objectives clearly. Are you saving for retirement, a home, or a major life event? Your goals determine your fund choice.
Understand the risk associated with the mutual fund. Higher returns often come with higher risk. Assess your risk tolerance.
Consistency matters. Evaluate if the fund manager has a track record of meeting investment objectives.
Assess the fund manager's performance over time. Consistent performance under their leadership is a good sign.
Consider expense ratios. Lower expenses mean more of your returns stay with you.
Regularly review your investments. Make adjustments if they no longer align with your financial objectives.
Be aware of any additional costs like entry or exit loads. They can impact your returns.
Diversify by creating a portfolio with different types of mutual funds. It spreads risk and can enhance returns.
Understand the tax implications. Some mutual funds offer tax advantages. It's essential for tax efficiency in your investment strategy.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
