Lux Investing
Help me in investing Mutual Fund?
I have a doubt, If a 'X' MF plan is doing good in the market and for example its NAV is Rs.50 and a new 'Y' MF plan with the same benefits of X is introduced in the market. Which plan can I invest. Can I go for X plan which is doing good in market or I can go for Y plan which is introduced new in the market?
Public Comments
- First: NAV's in mutual funds mean absolutely nothing. 2nd: Chasing fund performance can be good... it can also be very bad. 3rd: Most "experts" suggest waiting 3 - 5 years before getting into a new fund. (There are some rare exceptions, depending on management and goals). You're looking at this the wrong way. You need to understand, "asset allocation", "risk" and "time horizon". Buying the "right" fund is never more important than having a good "asset allocation" (for you!!!) with diversification. Best bet: Read some good books on Mutual Funds. Learn about "no-load" funds and "asset allocation". You'll be very happy in 10 years if you make the effort now!
- The right way to invest in MF is either buy a reasonably good track record when the stock markets are at bottom or invest little by little every 3 months once or two months once at least 10 to 20 times like this. It is called SIP INVESTMENTS WHICH SOME MUTUAL FUNDS PROVIDE THAT FACILTY. THIS METHOD IS THE MOST SAFTEST.
