Have you ever wondered which mutual fund to invest in among 4000+ funds available ? there is an art of investing in mutual funds.
After people choose to invest even in mutual funds, they are stuck with a big load of work, how to analyze and select that one winning mutual fund which can consistently outperform benchmark during their investment tenure.
We will create a series of articles with the objective of helping investors like you build an investment plan that is based on analysis, research, common sense and good judgement. My understanding is inspired by the works of John C. Bogle & Peter Lynch.
I will start with a disclaimer; this series is not about get rich quick easy rather build a prudent framework for investing in mutual funds.
Why Mutual funds and not stocks?
Major advantage of investing via Mutual funds is you get very good diversification with very little capital requirement.
There are few people who enjoy spectacular returns by owing individual securities but that portion consist of a small section of people, it is not as easy to earn high returns consistently. Re-read the word consistently.
Over the next few days, we will create a framework for you so that you can analyse the funds based on your investment needs. Obviously, we cannot tell which is the next star fund since we don’t know that. The main objective of this series is to make you aware the common mistakes and right things to look for while selecting a mutual fund. I hope you master the art of investing in mutual funds.