Want To Invest But Where ??

Hi..

Being in the industry of mutual funds I get to answer this question day in and out that  I want to invest but Where should I invest? What will earn me most return? and How to maximize my returns?

These questions seems to be easy but are very important and I believe every Investor should ask these questions to him self and or to the investment adviser.

Where should I Invest?

In mutual funds you have various options to invest in as ,discussed earlier in the blog, but what option is best for me is the real question.

As every fund is different from one another what is the best fund for  you depends on the type of money you have. For Example. you want to invest your savings which you have gathered over a period of time and have allocated it for some particular event later in your life , for example, wedding of children, buying a house, or medical expenditure later in your life time, you should go for security and not for higher rate of return. the reason is very simple, its is a fundamental rule, HIGHER the RETURN, HIGHER the RISK.Your risk taking capacity on the savings is usually low, so I would suggest you should go for some Income Fund, which is usually a money market fund and chances of risks are low.

If you have money on which you can take risk , and you have the holding power of the investment then go for any equity market or stock market fund but remember you can earn high returns on your investment through your investment but chances of loss are always there you have be vigilant and take wise decisions at the right time.

You have one more option if you are willing to risk some and gain some. Diversify your portfolio. To me its buy Far the BEST Decision you can take. Through diversifying your portfolio you can invest some amount in equity funds, depending on your Risk appetite ,and keep the rest in money market funds. You will earn the profitability of higher returns from the stock market and security from the end of the money market. Some companies are offering balanced funds in which they manage your portfolio buy distributing it between equity funds and other funds to achieve best possible returns.

In the end what ever decision you take its your decision and you should carefully analyze the market ,consult you investment adviser and most importantly be informed of the latest events in the financial markets.