Are you a “new” Mutual Fund Investor? Here Are the 5 Rules That You Should follow in 2019

Are you a “new” investor? Umm. Let us be more specific. Are you a “new” mutual fund investor? In that case, you might be facing a tough phase while making investments in 2019. Many investors whom we have made a connection with have just started investing in mutual funds after the “demonetization” drive was carried out by the central government. This what has created the major problem among the investors.   

Like you, there are many investors who have staggered while getting negative returns from their equity mutual fund investments. For those investors, it is extremely decisive to stay focused on their investments during uncertain situations. 

Still having confusion about how to handle all your investments? Look no further. Here in this blog we have listed down 5 crucial rules that if you embrace them in 2019, you can surely enjoy in the end, making successful mutual fund investments.   

1. Stop chasing Returns: When you stop chasing returns, the return will chase you. While making your mutual fund investments, it is certain that you will be told about high returns. But if you believe that high returns will knock your door from the day one then you are surely on the wrong track. 

Additionally, there are some investors who prefer to invest their money in schemes depending on their past performance and expect similar returns in the future as well. This is completely the wrong approach. 

Instead of choosing the schemes based on past performance and expecting high returns from the very first day, you need to look for risks associated with it. Higher the risks, higher will be the returns. Hence knowing your risk appetite will help you to make perfect investments. 

2. Focus on your Investment Goal: Every investor has their own specific investment goal. Some want to make an investment for their child's higher education, some make investments for their daughter's marriage, and so on. The list is long but the main motive is to make investments and save money. Therefore, you must go for those schemes that cater to all your needs. 

For instance, if your goal is for long-term, you should make investments in equity mutual funds, whereas for short-term goals, debt funds are the best. Generally, there are investors who invest in mutual funds online just for high returns. But they lose their focus when they encounter adverse situations. Are you doing the same? This is what you need to rectify while you are planning for investments in mutual funds. 

3. Be patience during Uncertainties: Another most important thing that new investors least emphasize on is patience. Patience matters a lot whenever you are investing in mutual funds. Especially when there is any uncertainty or volatile period, instead of panicking, you need to stay calm and keep trust on your investments. 

We have seen many investors, making investments with strong zeal but during the volatile period they withdraw their money. Mutual fund investments is not a game of a year. It has to be played for a long-term period, if not long at least for 5years.

4. Have Balanced Portfolios: Having a balanced portfolios is yet another technique that you must learn while making investments. Based on the market survey it has been found that many investors who have joined mutual funds after the hike of the equity market in 2016, started investing just in equity mutual funds.

Being an investor, you need to keep in mind that one asset class for example equity mutual funds can never perform all the time. There might be ups and downs in the market. Hence it is feasible to depend on a plethora of portfolios, instead of a single one.  

Investing in mutual funds is one of the finest ways to secure your future and achieve your financial goals. But not every mutual fund tailors your needs. Hence, it is beneficial to look for the fund that cater to all your requirements. 

The best way to get the best advice regarding your investment is to look for a financial advisor. Some financial studios like Wealthclock Advisors will help you with your concern.  

5 Things You Must Know Before Investing in Mutual Funds via SIP

A mutual fund investment plan is recommended for the investors who do not wish to bear more risk and also, do not have the capacity or time to analyze the market trends on a regular basis. Mutual funds investment through the extremely useful Systematic Investment Plan (SIP) has become very popular in recent years. 

SIP is a process that benefits investors in several ways and this facilitates mutual fund investment too. So, if you are an investor who is looking forward to the best way to earn handsomely from your investment, then go for this kind of fund but via SIP. Mutual funds have several benefits like an easy process, lower risk than others, active market tracking is not necessary and others. 

5 things that you need to know while going for mutual funds via SIP

Set objectives at first

If you are following this route for wealth creation purposes, then you must set a definite objective as per the respective requirements. If you are having trouble in doing so, then visiting top experts like Wealthclock Advisors can be pretty helpful. They will also guide you on how to invest in mutual funds online free. 

Lower average cost

While investing in the best performing mutual funds 2019 through SIP, you will have a lower average cost of investment. It is not possible otherwise through lump sum investments.

One-time return Vs SIP return

It is not necessary that your mutual fund SIP returns will be higher than the lump sum investment. Returns from the same mutual fund scheme vary between investment via SIPs and one-time investments.  

Refrain from stopping SIP

You should not stop your SIP investment especially at difficult times or maybe when its time for a market correction. Because of the dip in market prices of the underlying debt or equity assets, a smart investor may end up purchasing more mutual fund units compared to what he does during the bull run. 

Investment review

If you invest in mutual funds via SIP route you are not required to keep a track of your investment on a daily basis. But, a monthly or maybe a quarterly review of the SIP investments will offer a clearer picture of how things are going and whether there is any need for improvement or change so as to facilitate the overall goals. 

3 Reasons Why Asset Allocation is Highly Useful

If you ask a financial expert to define the true meaning of the term 'asset allocation' then they will explain it to you as an approach to investing where people decide the amount they want to invest in different assets based on their long as well as short term financial goals. Well, this is what the process of asset allocation really means and you should adopt it to strengthen your position. 

Asset allocation is something that can benefit your financial investment process in a huge way. Today, with the plethora of financial experts available all around the town, you can get the best advice related to this highly useful process. Among the many firms, Wealthclock Advisors, hugely lay emphasis on the importance of asset allocation.  

In this blog, we will know about the reasons why asset allocation is considered so useful.

The importance of asset allocation in today's time

It spreads the risk

People have a knack for a certain kind of investments. Some may prefer best performing mutual funds 2019 over fixed deposits. Some of us keep equity higher than real estate. We do investment based on our intuition. And intuitive investments often lead to over-reliance on a particular kind of asset. This can leave us exposed to risks. 

So, this is where asset allocation comes into the picture. It helps to spread the risk so that your investment portfolio is not in danger.

Definition of investment objective 

Everyone invests with the aim to meet their future goals or needs. People may have short-term needs such as paying for children's education fees or long-term goals like retirement plans. So, if you engage in asset allocation and combine the top equity mutual funds to invest and fixed income investments in a suitable way, that will facilitate your financial goals, then it will be quite helpful.  

It will also help you to manage and grow your investment portfolio in a better way. We all look for safety when it comes to investment and this process helps us to achieve a safe status.  

Eliminates the possibility of market timing

It has been said a lot of times that the market can't always be perfectly timed. But still, people tend to flow with what the media has to show. If they see a sudden price rise, it may tempt them to make some bizarre decisions. We may think engaging in some fancy move may bring us glorious results. But more often than not, we end up hurting our portfolio. 

Asset allocation will help you to achieve not only your short-term but long-term goals too in a stable and logical manner.

Why is Equity Considered The Best Retirement Plan?

When it comes to retirement you need to make certain choices. So, if you wish to live a fulfilling retirement phase, then you not only need the correct kind of investments but also the right amount of time. Basically, you only have two choices; live a retirement life worrying about your financial aspects or retire and live an enjoyable life. 

What does retiring rich mean? It does not mean retiring with just enough to last for a couple of decades but the type of money that does not have the risk of running out. There are no actual shortcuts when it is about saving for retirement. Most of us don't receive stupendous salary hikes or fat bonuses. So, the choices we make will decide how comfortably we will live our retirement time. 

So, if you want the best financial advice, then visit the top experts like Wealthclock Advisors. They provide the best guidance and help to clear any such doubts. 

How is equity the most suitable retirement fund?

In order to retire comfortably and ensure a rich lifestyle, you should go for an investment option that will grow at a considerably higher rate than inflation. Equity is the best investment option in this respect. They have a historically proven track record of being always on top of inflation. You will see most rich people holding their wealth in the form of equity. 

Equity shows its true potential in the long run, like in the seventh year or so. The average growth rate of such investments in recent times has been 12% and it speaks highly about this scheme. They have often been regarded as the best investment plan with high returns in India. The rate is significantly higher than other similar schemes available. 

How is equity a helpful retirement solution?

Another advantage that equity has over other firms is that anyone in their early 20s can begin investing in them. And this gives them a whole lot of time to reap off the benefits of such safe investments with high returns in India. The phase of retirement can get extremely tough for people. And so, it is essential that they do proper retirement planning from early on.

Saving for retirement is a long term challenge. There is no other instrument other than equity that addresses long-term growth needs perfectly. Equity works perfectly over the long-term.