Best sip mutual funds |
Investing mutual funds can be very complex and irritating some and in that critical situation, one should already short list best sip mutual funds before they start their investment journey. Even if you shortlist several mutual funds for a sip, there is a higher possibility that you could end having less or in some cases negative returns. As opting for sip mutual funds is a great way of achieving onces financial goals either it could be long term or short term.
There are several smart ways to shortlist mutual funds for you to sip investment. Therefore, I will list down a few of them below
- First of all, you need to understand your objective. "why & for what you want to invest" by doing this you will get a rough idea of the tenure of the investment.
- How much risk you are willing to take, understanding this is very critical because this will give you an idea for which type of mutual funds you should go for. If you risk taking ability is high and your financial condition is going good then you should be going for SIP with an equity mutual fund scheme and on the other hand, if you are looking for consistency in cash flow then it is recommended to go with debt mutual funds scheme.
- Knowing their historical data like performance and returns, Studying the past performance of the mutual funds is always a good option and based upon comparing the historical data of at least 3 to 5 years one short list best sip mutual funds.
- Another way of for shortlisting best mutual funds for mutual funds investment is by is understanding the expense ratio of the scheme because high expense ration can lead to a high yearly fee which may negatively affect your overall returns, but also impact the fund’s performance in the long term.
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