Mutual Fund Investment Strategy | Best Strategies for Mutual Fund Investment

  1. Assign a specific goal to each fund you are investing into. (ie-Retirement, Children’s Education, Home, Travel, etc)
  2. Identify suitable funds basis for your goals.
  3. Then decide money allocation to funds selected. (ie 50% in ELSS etc.)
  4. Treat each mutual fund like you treat a stock before investing.
  5. Do research about each fund like its stocks holding, fund manager, sector allocation & past track record.
  6. Don’t put all the money thru SIP, keep 40% of your total amount for a top-up during declines to impact CAGR.
  7. If you want to invest 1 lac in a year then put 60000 through SIP & Rest 40000 they top-ups in declines.
  8. In bull trend Market falls 4—6% for 4—5 times in a year… that is a period of top-up.
  9. This way you get good Qty at lesser price & improve your return ration in the long term.

Finally When to Redeem

So redeem basis the requirement or once you accomplish your goal

Also if you are an active investor in equities then redeem partial or full when you feel the market has made a major top especially in Mid & Smallcap funds

Have a Great Journey..!

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