How to Select Mutual Funds and Invest in SIP

If you are wondering how to choose mutual funds from the multiple types of schemes such as debt, equity, hybrid, money market, and others, we can guide you. We also offer tips on tracking mutual fund performance and how to invest in SIP (Systematic Investment Plan.)

There are numerous mutual fund companies in India managing hundreds of schemes in total, so it can be confusing and complex to zero-in on a suitable plan. To start, you need to be clear about certain important steps in your selection process. First, you should have an objective for investment, such as renovating your home or planning for retirement. Second, you should calculate the cost and period of time needed to raise the required amount. Third, you should consider your risk appetite and understand the risks involved.

In short, you need to take into account your objectives and goals as well as risk appetite before selecting a suitable type of mutual fund, which can be debt, equity or hybrid. Only after that should you choose specific schemes based on portfolio fit, track record, etc. Thus, if you are clear about your investment purpose at the start, there will be much less confusion in your mind about how to choose mutual funds that can deliver the desired returns for you.

How to Track Mutual Fund Performance In today’s internet age, it is easy to track the portfolio and investment performance of mutual funds. You need not depend on advisors for everything, and it pays to acquire a little knowledge about your investments on your own.

The process is not complicated as you don’t have to understand complex graphs and fact sheets. Investors get review statements and updates that track mutual fund performance from their intermediary or advisor. On top of that, numerous mobile apps and websites monitor scheme performance. You can customise these sites to track a specific portfolio. Leading business newspapers also provide regular reviews and opinions on mutual funds.

The fund fact sheet is another useful tool for tracking mutual fund performance and your investments. It is a one-page document published each month by every mutual fund and gives an overview of the plan as well as a summary of scheme and portfolio performance. In essence, it is a report card that sheds light on the scheme’s health.

How to Invest in SIP To create wealth, you should start early, make regular investments, and continue them over the long term. If you wish to know how to invest in SIP, you’ll be surprised to learn that you can place just Rs. 500 per month in a mutual fund plan. The important thing is to start your journey of wealth creation, and you can then raise the SIP amount as both your confidence and income increase.

Mutual funds are convenient and flexible and, as such, are ideal investment instruments for busy professionals. Investing in a mutual fund SIP is similar to putting your money in a bank’s recurring deposit scheme. The key is to invest regularly for a long period to attain your desired wealth creation goals.

Here's a little bit about myself. I've done a Masters in Economics and teach the subject to high school students. I am 32 years old and married to an investment advisor. A Dhoni fan who loves to play football! I am a sports enthusiast and a firm beli