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Mutual Fund

Mutual Funds are certainly subject to market risks, reading of the offer document carefully is the statutory warning and an advice before investing. Hence, it makes the investors alert and fearful at the same time. This implies, while mutual funds are risky yet good investing option, an investor must know well and have in-depth knowledge of choosing and then investing in mutual funds.

Knowledge of different fund types, their performances, lock-in period, risk involved, return rates and income/growth can all contribute towards a better decision of choosing a fund type that is trending and suits your need as well. Trending can be gauged and computed, what suits you is how you should approach on what’s best for you to invest. To pick the most appropriate fund you must answer the below:

What are your financial goals?

Before you put your funds in a scheme, ask yourself about the financial expectations. Whether it is long-term gains or regular income? The money earned is for acquiring an asset, an experience, or is it for your retirement plans? How quickly you’d need your money back, can you plot it for a couple of years or would you need it shortly, maybe in a few days? These and few more questions are a must to track your expectations and goals from your finances and investments.

What’s the bar of your risk tolerance?

Next in line is to know your appetite for risk? Can you take the volatilities of the market? Can you keep your cool and not get impulsive to drastic switches in the value of your portfolio? Can you experiment and take the plunge towards higher risks in your aim for higher gains? Or are you conservative and would prefer stability?

What are the fund types and size of funds you’d like to invest in?

This is more like a combination of the above two questions, so if you as an investor are willing to take a fair amount of risk and can set apart your funds for a long-term, then you must go for long-term funds that offer capital appreciation. These are volatile in nature and hence bear the potential of better and higher rewards over time. But, on the contrary, if you are aiming at moderate income, then debt as income funds should do the trick. Also, to have the best of both worlds, the other way is to invest in balanced funds that invest both in stocks and bonds.

Once you are sorted, you must trust a good and a reputed Asset management company (AMC) like Reliance Mutual Fund (RMF), which is one of India’s leading and fastest growing mutual fund houses. The funds designed by RMF are aimed to offer stable income, create wealth and push growth. The AMC is said to manage the funds of investors wisely and help them in accomplishing their financial goals. 5 Top trending mutual funds of Reliance Mutual Funds are as follows:

Reliance Equity Opportunities Fund- Growth (Equity Diversified)

Reliance Regular Savings Fund- Debt Plan Growth (Income-Medium Term)

Reliance Growth Fund- Growth (Equity- Mid Cap)

Reliance Dynamic Bond Fund- Growth (Income-Long term)

Reliance Tax saver (ELSS) Fund- Growth (Equity-ELSS)