Buying mutual funds online? Top tips to focus on to make hefty money and avoid losses
Blue chip mutual fund plans have lesser deviation as they are large-cap stocks. Apart from this, these companies have a good and reliable track record.
Mutual fund investments are on the rise. Today, you can buy mutual funds online with just a few clicks of your mouse. But, is it that easy for an investor to buy MF plans on their own? Probably not, but it's not that difficult either. According to tax and investment experts, looking at the fund managers' track record, the benchmark of the mutual fund plan, and a few other top performance points. are some of the measures that can help a mutual fund investor to do meaningful investment sitting at home and profit from it in a major way.
Speaking on the measures while buying a mutual fund plan online, Kshitij Mahajan, Co-founder, Complete Circle Consultants said, "If a mutual fund investor is a newcomer, then it is advisable for them to buy mutual fund schemes focussed on shares of blue-chip companies. Blue-chip focussed mutual fund plans have lesser deviation as they are large-cap stocks. Apart from this, these companies have a good and reliable track record for years that reflects about the strong fundamentals of the company leading to lesser chances of loss for a mutual fund investor who is buying a mutual fund policy online."
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Mahajan advised mutual fund online investors to have a look at the track record of the asset managers of the mutual fund houses. They can directly go to the AMCs website and check the track record of the fund managers. At the AMCs website, one can find out the better performing mutual funds as well. Mobile Apps of the AMCs are also available now and one can invest after downloading the AMCs app on their Smartphones or Android phones. He said that mutual fund online investment helps an investor save the advisor's fee which is to the tune of 1.5 per cent to 2 per cent in the name of expense ratio. sometimes, this expense ratio goes up to 2.5 per cent also.
Advising mutual fund online investors to do some research work before making any investment decision Kshitij Mahajan said, "While selecting a mutual fund for online investment, one needs to check the track record and performance of the mutual fund plan. One should also check the track record of the fund managers associated with the mutual fund plan the investor has selected for investment."