Equity Mutual Funds

Equity funds

Equity is the best asset class among the Mutual funds which offer higher returns of different market caps (large, medium and small caps). Equity funds buy the stock of companies listed in the stock market and offer a variety of equities with greater flexibility.

Why not buy Stocks Directly?

This is the next question that hit a mind when you speak on “Equity funds”. Firstly, think about how you would know which stock to buy? Because, if you are new to investing, then opting for the wrong stock will cost your money and peace of mind. When you decide to buy a mutual fund, you outsource your decision to the Stock Experts.

There is “Fund House” where a team of specialists and analysts track the companies, markets, politics and interest rates to predict the future of stocks. Based on their reports, AMC (Asset Management Company) will help you to build your portfolio on stocks.
You can invest in equity mutual funds through a direct plan. Every mutual fund investment you make will have two variant- direct plan and regular plan. While Regular Plan bears a commission and direct plans are absolutely commission free. Hence, you get more returns on your investment with a direct plan.
You can invest in MyWay Wealth- Direct Plan Mutual Funds where it provides you an advantage of Zero Commission and Zero Fees.

Who needs to invest in Equity funds?

Your decision on investing Equities will depend on the factors like risk-bearing capacity, investment horizons, return expectation.
Suppose you want to make an investment for a period of 5 years or more, then you can buy Large-cap equity funds because your returns do not fluctuate more and it best suits for the investors who are risk-averse.
If you are willing to take a greater risk than as compared to large cap, you may invest in mid/small caps.

Things you need to consider as an investor before investing in Equities:

  • Objective: Be sure about your objective, decide whether your objective is income generation or wealth creation. Income generation is required for a near-term goal and you will stay invested in fixed-rate products.
    For wealth creation, you have to hold assets for a long period and wealth creation depends on the quality of asset and price others willing to pay.
    Fund type: There are a variety of classes in Equity (small-cap, mid-cap, and large-cap). Each class has a different level of risk and returns associated.
  • Cost: Your Equity fund charges an expense ratio to manage your funds. SEBI has set up an upper limit of expense ratio as 1.05%.
    Financial goal: You’re establishing these funds because to meet your future goals. Your goals can earn higher returns, early retirement planning. Children marriage, etc.

How do you Evaluate Equity funds?

Based on certain parameters, you will evaluate the Equity funds:

  • Fund performance based on return on investment which is considered as an important parameter for the selection of funds.
  • The fund you select should have a clean and long history of 5 years because to ensure that the fund has seen all the market cycles and,
  • The risk-return ratio becomes an important factor to select the fund and “Sharpe Ratio”, the higher the ratio, the better the risk-adjusted returns for that funds.
    (Sharpe Ratio: how much excess returns you can receive for bearing extra risk)

MyWay Wealth

You can invest in hand-picked funds through MyWay Wealth which is India’s most trusted Mutual fund app. However, remember to choose the right investment option that is based on your risk appetite and investment goal.

It’s never too late to make the right choice!

Gold as an Asset Class

gold asset

“I like gold because it is a stabilizer; it is an insurance policy.”

–Kevin O’Leary (Canadian Businessman)

“Gold is the money of Kings”. Gold has a significant immensity in India. We as a whole love to wear gold jewels and in fact, they turned out into materialistic trifle. Be that as it may, shouldn’t something be said on gold as an investment.
You can buy gold in a different form other than physical form. You can get Gold as a mutual fund, you can even buy gold bonds and the trend of digital gold. The gold fund offers investors the convenience of buying pure gold at a low cost. You buy gold in the form of units and these units will be linked to market prices and you can sell gold whenever you want.

Let’s discuss in detail about gold in different forms.

  • Physical form:

Holding the gold in physical form involves high cost and less safety. Sometimes making charges will be as high as 14-18% of the cost of gold. Buying gold in the form of bars and coins also falls under this category. “Gold Saving Schemes”- where you deposit a fixed amount of money on a predetermined basis and on the maturity of a time period, you’ll buy the gold.

  • Gold Mutual Funds:

These funds invest in gold. The product called a Gold Exchange Traded Fund (ETF) was launched in 2007 and became popular as investors saw it as a good deal. You get these for a lower cost than buying physical gold and offer a 100% purity with no making charges. You buy a unit of gold ETF at the current market price of gold. One unit of ETF is equal to 1 gram of gold. You need to have a de-mat account to invest in gold ETFs. Gold funds allow a minimum investment of Rs 1,000 (as monthly SIP).

  • Sovereign Gold bonds:

Sovereign Gold bonds are the government securities issued by RBI(Reserve Bank of India). They are denominated in terms of grams. The investors can avail it through paying cash and on maturity the gold will be redeemed for cash.

  • Digital gold:

Digital gold is relatively very new to the market. It is very simple and transparent to buy and sell gold instantly. Physical gold has limitations on safety and security issues. But there is another gold investment option that overcomes all the challenges of holding physical gold and that option is “Digital Gold”.

Are you looking for the best platform to make a gold investment then, MyWay Wealth is your solution.

Let’s look at some of the features of MyWay Wealth:

  • You can buy 24k Gold and skip the responsibility of safe-keeping and traditional lockers.
  • You can get a free and secure locker from BRINK’s, a global leader in gold custodian services with 100% insurance cover.
  • Sell your gold with one click, anywhere and any time.
  • Get your gold delivered to your doorstep, hassle-free.

Pictures of Myway Wealth App

In Addition to 24k Gold, you can also invest in Gold with another option on MyWay Wealth. i.e. you can invest in Gold Funds through SIP where you can gain appreciation in gold value without the hassle of owning physical gold. You can start investing in gold with as less as Rs 500.

Embrace your investments through MyWay Wealth!

Learn to Evaluate Financial Instruments

Evaluate financial instrument


There are many financial products in the markets that can help you achieve your financial goals. Each product will have a specific role and serve a specific purpose. You need to evaluate a financial product before you include them in your portfolio.

Why you need to evaluate the investment options:

  1. Enables you to understand and choose “Right investment product” that suits your financial need.
  2. Enables you to differentiate between short term, mid and long-term ones.
  3. Evaluation helps you to predict and measure the “financial performance”- returns and risk.


Mutual fund as an Investment Option

Mutual funds


One of the best ways to ensure that you reduce the risk associated with your investment portfolio is through diversification across various asset classes. The percentage of investment in various asset classes will depend on your individual goals, risk appetite and time horizon for your investment.
Mutual funds are one of the most preferred investment options to investors who are wanting to invest in equity as they offer diversification and offset the risks.


Self-Defense when it comes to Life Cover

Building Your Protection.

life cover

“Term life insurance is part of a good defensive game plan”.

Dave Ramsey.

Each time we go to the doctor for a fever, we don’t really think of the cost too much right? The fee is affordable because we choose our doctors given our own spending power. The prescription medicines also don’t break the monthly budget. But when you encounter serious cases like surgery for liver infection or a heart attack or a knee replacement, the cost plays a significant role.

How much cover do I need?

First, let’s understand what is Family Floater Medical Cover.

A family floater is a comprehensive medical cover for the whole family. Usually, the family floater plan covers the individual, spouse, and the children, but certain insurance service providers also have provision to provide cover for dependent parents, siblings, and parents-in-law.

For Example: If you have a 15 lakhs Family Floater Medical Cover for a family for father, mother and two kids – any or all of them can use the cover in case of hospitalization. For the years which you have made no claim the outflow of premium feels heavier and heavier. But it takes one way in the hospital to see the usefulness of the premium you have paid.

What policy should I buy?

First, a fall let’s understand “co-pay”:

Your health plan may require a copayment or (co-pay). Whenever you receive medical insurance. Co-pay is a charge that you need to pay in order to receive a specific medical service.

Let’s make it easy with an example:
Your policy has a co-pay clause of 10% and your medical expenditure is Rs 60000/- you have to pay 6000/- out of your pocket and insurer will cover remaining Rs 540000/-. You need to know that some policies will not pay the full amount because you signed up for something called co-pay. Which is Not exactly helpful! Whereas, some policies have limits to what you can spend on hospital services. You need to find out if the TPA (Third Party Administrator) service is good or not wherein you have to also make sure that if the hospital network is large or not.

  • One is how does it perform on the metric of price
  • Two does it perform on the metric of benefits.
  • Three is how does it perform on the metrics of claims.


It is important to know what the policy costs, right now and in the future and how much u would be able to get. Unlike a life cover, where your premium gets locked when you buy a term cover, the premium also changes in medical cover changes as we age.


We buy a medical cover so that when faced with a hospital bill, we don’t have to exhaust our savings. The deal is simple: you pay an annual premium when you get hospitalized, the insurance company pays your money.
But then it’s a complicated world. The insurance company has the ability to set up the game so that you lose.

You need to find out the policy gives at least eight benefits:

  • Ensure that you have a policy that does not have something called a co-pay clause.
  • Check for a pre-existing disease clause.
  • Check if your policy has a disease waiting period.
  • Check if your policy has sub-limits.
  • Check for exclusions.
  • Ask how much of the costs before and after hospitalization the policy will cover.
  • Ask for a list of day care procedures that don’t need you to stay.
  • Look at the no claims bonus feature.


Your search for that good policy is not over until you understand the claims history of the company you finally choose. You know telecom service is good or not when you use it. So these are the questions that you must think about at the time of buying your policy. Ask the agents these questions on claims before you buy.

  • How many claims does the company settle?
  • Look at the claim-complaints data and look for a policy that has less than thirty.
  • Complaints on every 10,000/- claims made.

What to do if you are not getting coverage because of a pre-existing disease?

You can buy a policy with sub-limits, co-pays and with an exclusion period for your ailment. The sub-limits are the limits wherein the policy will pay for certain diseases and for the room rent and the cost related to it will be paid. And co-pay is where you agree to share the cost with the company. These are restrictive but better than not having a policy.

Strategies for Senior citizens:

Let’s understand what is top-up-plan:
In simple words when you are hospitalized, the insurance will pay you the sum insured. So if you top up it will kick your certain threshold limit.

Here is an example:

Top up health cover
Rs 10 lakh cover
Rs 5 lack of threshold
Covers between 5-10 lakh only
Regular health insurance
Rs 5 lakh cover
Covers only up to 5 lakh

Along with your work cover, you should have a family floater. You live in a small town in India and have a family floater between 3 and 7 lakhs. You live in the metro have a minimum of 15 lakhs family floater. You are over sixty have a top-up plan to bump up your basic cover.

A Quick Take Away

We have understood the importance of a Life Cover, as it helps us to protect our loved ones. What happens if you are not around your loved ones? You still want them to be happy and secured right? Hence its also important to consider another variant of insurance which is “Term Insurance”.

Advantages of Term Plan:

  1. Term insurance is the simplest form of life insurance to understand.
  2. Term insurance is a sensible choice for people who are building a family.
  3. Lower initial cost when compared to an endowment plan.

MyWay screen shot

We all know insurance can protect your family. MyWay Wealth protects your family with Term Insurance. Protect your family today and be a Hero!

Happy Investing!!


It’s wise to be prepared for Emergencies

(Emergencies Need A Fund)

be prepared

“Never invest in a business you cannot understand.”

        —Warren Buffett.

Many people fail to prepare for the future. We all know that financial security is important for every person. An emergency savings fund can help an individual to look forward without worrying about being unprepared for unexpected expenses.

Why people worry or get afraid when it comes to long-term commitments?

The answer is always or almost “What if there is an emergency? I won’t be able to use my own money if it tied up in a long-term investment.”

We typically need money ‘midway’ under two circumstances:

Planned eventsUnplanned events
Your car servicing.Large hospital bills
Making down payment for the home.Change of furniture or you can say gadgets
Sending kids to biz schoolJob loss
Going on a foreign holidayLoss due to natural calamities

Note: This may vary from an individual person point of view.

You should keep aside six months of your expenses including your EMI, rent and other expenses. You can increase or decrease this figure as per your personal situations. So if your emergency fund is Rs 1 lakh in these circumstances you can save Rs 5000 to 10000 as your monthly savings. Here are a few pointers that can help you:

  • If you and your spouse are working and have no dependents, in such a case, 3 months of your living expenses can be kept aside for an emergency fund.
  • If you and spouse are working and have dependents, then 6 to 9 months of your living expenses can be kept aside as an emergency fund.
  • If you are single and you are working and have no dependence, in such a case 2 months of your living expenses can be kept aside for your emergency fund.
  • If you are single and you are working and have dependents, then 6 to 8 months of your living expenditure can be kept aside for an emergency fund.

This can be easily understood in a tabular form:

DependentsExpenses If this is the case what should you do?
SingleMany Dependents6 to 8 months of emergency funds
SingleNo Dependent2 months of emergency funds
CouplesNo Dependent3 months of emergency funds
CouplesMany Dependents6 to 9 months of emergency funds

Where would you invest this money?

The worst thing you can do is leave the money soaking around in your savings deposit. The early and best-understood product is a fixed deposit. We’ve all grown up with our dads going to the bank to set up a ‘fixed deposit’. Now we can use the new banking technology to move money into and withdraw money from FDs without going through the painful process of filling the form at the branch. An alternative, rather better option is Mutual Fund. People who are familiar with it can use what is called short term debt funds to build an emergency fund. Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills.

Features of Debt Mutual Funds:

  • It earns better returns if you compare with FD(fixed deposit). The returns you earn is in between 6 to 8%.
  • It is more liquid than FD
  • Has higher post-tax return when we compare with FDs.

To get access to top recommended mutual funds, MyWay Wealth is a one-stop destination. Where you can invest your funds and can secure your future. MyWay Wealth offers you direct plans for investment. It also offers Debt, where you can create short-term wealth creation. All you need is a few minutes to complete your KYC process and input your monthly contribution.

Think about investment. Think MyWay Wealth.

Budget Matters

(Don’t Stash That Cash)

Budget matter

“Always stay rational.”

—Warren Buffett

We Indians start thinking about what to invest in – should I buy a plot of land, or should I buy shares, or should I invest in a pension plan to solve our money problem? Everybody has money to save- from the poor woman who sells veggies on the roadside to those who just don’t know how to look for it.

Manage your expenditure by dividing them into different accounts such as:

Money drops in each month and the living cost kick in immediately: rent or EMI gets debited; domestic help salaries get paid; utility bills are done; groceries are bought; fees paid; travel costs are ongoing daily expenditure and so does shopping gadgets, eating out, movies. The rest goes to the credit card bill. A lot of money conversation begins with effective budgeting. We are told to write down every rupee we spend. And this process is monotonous and boring. So here is a classification that will help you to deal with your finances better.

Type of account



Income 10%-15% can be maintained as a cash reserve for daily expenses. Salary revived, rent received, dividends earned.
Spending Not more than 45%-50%. EMI, credit card bills, Utilities
Saving At least 15%-20% Set aside for investments

Let’s look at the above table in detail:

Once your salary hits your income account, within thirty minutes (OK take a day, but do it) move your monthly expenditure to your spending account.

Spendings should not be more than 45%-50% of your income. The salary (Income account) account is always a zero balance account so sweeping money is all possible.

So, at last, you would be able to manage savings of at least 15% to 20% excluding all your spending. Where you can utilize this money for your further investments.

Is it okay to have a joint account?

Type of account

Individual Joint


Income Yes No It’s good to have a separate Income Account in case your partner is not helping and not supportive
Spending No Yes Spending can be a joint account where both of your credits can equal your monthly spendings
Saving Yes No Each will have different savings account it can be joint, where the primary holder should be the same on whose name investment will happen.

You have a three account system that separates your income, spending, and savings. Where you can analyze your income accordingly you would be able to figure out how much to spend. And by that, you would be able to wisely invest the amount and yield your profits from the invested rupees.

What do I do with my savings?

At a point when individuals retire they will either receive no salary or encounter a decrease in it. As a solution, opting a pension scheme would help you to save a good corpus for your old age, thus providing financial security and freedom. One should invest in NPS (NATIONAL PENSION SYSTEM). The national pension scheme is initiated by the central government. This scheme is where a person needs to invest in a pension account at regular intervals when the employee is working. This program is open employees from private, public, and even for those who are working in the unorganized sector. After being retired the person can withdraw a certain amount of percentage of their funds. Wherein the person gets benefit under section 80C and section 80CCD. This scheme is portable across all the locations.

MyWay app

MyWay Wealth is the best destination where one can think of investing their savings in a systematic manner. MyWay Wealth gives the option to invest your funds into NPS scheme and various other options such as Mutual Funds, Term Insurance or Digital Gold that suit your investment horizon and risk appetite.

Think investment! Think MyWay Wealth

Growth vs Dividend

growth vs dividend

“Rule No. 1: Never lose money. Rule No 2: Never forget rule No.1”-

What is a dividend option?

In the case of a dividend plan, the profits made by your funds are not reinvested back into the fund by the fund manager of the Asset Management company (AMC). Gains will be distributed on a quarterly, half-yearly or annual basis. Dividends are only declared by AMC when the scheme realizes a profit in real life. The amount of dividend you get is not predetermined. In dividend option, the dividend is paid to you from the NAV of the units you hold, so paying dividend reduces the overall NAV.

What is a Growth option?

In growth option, the profits are in the form of capital appreciation and dividend, made by your scheme are reinvested into the same fund. This will lead to the rise in the Net Asset Value(NAV) of the scheme with time. When the underlying portfolio of the fund makes profits, the NAV of its units rises. Similarly, your fund runs at a national loss, due to a market correction, the NAV of the same fund goes down.

Purpose of having different options:

When it comes to choosing a mutual fund, an investor needs to make a range of choices. And most of them find it difficult to choose between growth or dividend option. Both options have advantages and disadvantages. The investor needs to make a choice based on their personal financial goals and needs. The NAV of dividend option mutual fund scheme can be different from the growth option. The fact is NAV of growth option is found to be higher than the dividend option.
The scheme is the same but there is a difference in NAVs due to the compounding effect. In both the options, investment is done identical but the manner of distribution of profits varies.

Which option is better to invest in?

Whether to go for a dividend option or growth option that depends on the investor. Where dividend option works best when the market is high. As the NAV of funds rises consistently, the possibility of declaring dividends is higher. If you are an investor who focuses on a regular income, a dividend option might work for you. But one will lose compounding returns, as well as wealth accumulation may slow down as compared to growth option.
Where growth options can be suited for investors with long term investment deals. It will help the corpus for retirement. In case you don’t require a regular income go for growth option.

Different tax options:

In growth option, long term capital gains over 1 lakh on equity funds will be taxed at the rate of 10%.
And in the dividend option, the rate of 10% has been proposed on equity oriented mutual funds.

Summary – Mutual fund Growth vs mutual fund dividend plans:

Mutual fund Growth Plans are better than Mutual Fund Dividend Plans for the following reasons.

  1. Mutual fund dividends attract higher tax capital gains in mutual fund growth plans in several scenarios.
  2. Mutual fund dividends are not an indicator of profitability.
  3. One cannot control the timing of when mutual fund dividends are declared.
  4. Mutual fund dividends do not create value, they only distribute value.

MyWay Wealth app

Being a smart investor one should choose the best investment option. One should always opt for investment which matches their financial goals and risk appetite. Where MyWay Wealth gives you the best option to invest your funds safely. Mutual Fund Dividends are not an indicator of profitability, whereas Mutual Fund Growth is meant to be for the long-term and they can yield your money.

Happy investing!!!

My Retirement Goals


“It’s better to live rich than to die rich”.

How do we know that when we hit sixty-five or seventy or eighty, there will be a skill that can throw off an income? We need to create a retirement corpus so that by age sixty we are financially free. A person is financially free when you don’t need to work to pay your bills. You should have enough assets that generate enough income today and for the rest of your life. We all know inflation is relentless, and even when the rate of inflation falls it does not mean that prices go down. They just rise more slowly. Getting the right amount of retirement is not tough to crack.

At the age of twenty-five save 25 percent of your post-tax income, at age thirty save 30 percent of your post-tax income, At forty save 40 percent. This formula works if you don’t have a single rupee saved towards your retirement, till you are forty.

Here are the retirement plans one should invest for better returns.

1. NPS(National Pension Scheme)

The national pension scheme is initiated by the central government. This scheme is where a person needs to invest in a pension account at regular intervals when the employee is working. This program is open for employees from private, public, and even for those who are working in the unorganized sector. After being retired the person can withdraw a certain amount of percentage of their funds. Wherein the person gets benefit under section 80C and section 80CCD. This scheme is portable across all the locations.

Types of NPS account

There are basically two types of NPS and they have the tire I and Tier II.

Basic information for a Tire I

  • There is no limit of the Maximum NPS contribution.
  • The maximum NPS contribution should be Rs. 250 or Rs. 500 or Rs 1000.
  • One can get tax exemption up to Rs 2 lakh (Under 80C and 80CCD)
  • There is no permit for withdrawals.
  • The status of the tire I account is Default.

NPS Tier II account

  • There is no maximum limit for NPS contribution.
  • The minimum contribution should be Rs. 250
  • There is tax exemption up to 1.5 lakh for government employees other employees.
  • For withdrawals, you are permitted here.

NOTE: The tire-I account is mandatory for everyone who opts to invest in the NPS scheme. The central government has to contribute 10% of their basic salary. For the rest of everyone else, investing in NPS is their call.

How to open an NPS account:

NPS account is been regulated by PFRDA, one can go for online as well as offline to open this account.

Offline process

The person needs to pay a fee of Rs. 125 for this.
One needs to make an investment not less than Rs. 250 or Rs. 500 or Rs. 1000 annually.
To open the NPS account manually, one should find PoP- point of presence.
Remember one should update their KYC papers in a bank.

Online process

One can invest in NPS through MyWay Wealth.
All that you need to do is download MyWay Wealth app, which is India’s most trusted app, update your KYC and start investing your funds in NPS.

MyWay Wealth app

2. Senior citizen savings Scheme (SCSS).

The senior citizens saving scheme is a scheme protected and backed by the government of India to provide regular income for senior citizens of India. Since it is provided by the government of India, this scheme is tax-free, which is been preferred amongst the retired audience.

Who can invest in these?

  • Senior citizen of India is eligible for SCSS.
  • Senior citizens of India aged 60 years or above.
  • Retirees who have opted for voluntary retirement scheme (VRS). Or superannuation in the aged bracket 55-60.
  • Retired defense personnel with a minimum age of 50 years.

Note: HUFs and NRIs are not allowed to invest in this scheme.

What should my investment amount be?

1. The minimum amount required for investment is SCSS is Rs 1000.
2. The maximum amount should be lower of the two:

  • An individual can invest up to 15 lakhs.
  • An individual can invest the amount received as a retirement benefit.

If its joint account with a spouse, then the maximum amount is 30 lakhs.

The interest rate on the SCSS account.

Interest rate

How to open an account in SCSS?

  • SCSS account can be opened in any authorized bank or post office.
  • First, the person has to fill a document for opening an SCSS account.
  • Proof-like PAN card, a passport to be presented
  • Two passport size photos.

Note: have original identity proof for verification.
Hence it’s clear that NPS provides all the features that SCSS can provide. Also, NPS allows you to earn returns anywhere between 9-15% whereas SCSS helps you earn between 8-9%. Why miss out on the opportunity to earn those extra returns? Additionally, NPS provides tax benefits where one can secure the future after retirement. You can invest your funds through MyWay Wealth after all one should spend their retirement peacefully.
Invest in NPS on MyWay Wealth and enjoy a tension free retirement.

6 Reasons Mutual Funds

6 investment mistakes to avoid with Mutual Funds

An addition of about 9.74 lakh Systematic Investment Plan (SIP) accounts recorded each month on an average last financial year and an average SIP size of about Rs.3,200 (data according to Association of Mutual Funds in India (AMFI) ), has shown the ease with which people can understand, invest and earn returns with Mutual Funds, thus making it a popular investment option. Also, the fact that investors can choose between Equity, Debt and Balanced funds (which invest in both Equity and Debt), they can invest in funds that suit their investment needs, risk appetite and financial goals. Investments in Mutual Funds help you earn higher returns than Fixed Deposits or your Savings account, provided you avoid these six common mistakes while investing in Mutual Funds:

1. Not Considering Risk
A typical behavior we see amongst investors is “The herd mentality”. Investors do not want to miss on returns, hence come under peer pressure and invest in Mutual Funds that do not suit their risk appetite. It’s very important to do a financial check of your situation and evaluate your investment horizon. If you are a risk-averse investor with an investment goal less than five years, then do not choose Equity Funds instead go for Debt funds. However, if you have longer investment goals (> 5 years) then choose Equity Funds. Remember, only the right Fund would yield the proper Benefit.

2. Investing without a Financial Goal
Have a Financial Goal. It could be saving money for your Child’s marriage or education, or you might want to save for your retirement, or it could be as simple as buying yourself a vehicle. No matter what the purpose is, every Goal has a fixed Tenure. So plan. Any allocation to equity or debt mutual funds must go hand-in-hand with your financial plan and to your inflows. And remember, once you have invested, you must not think about withdrawal until you are nearing your investment goal.

3. Over Diversification
Yes, Diversification is crucial, because Mutual Funds are subjected to market risks and putting all the eggs in the same basket could be tricky. However, at the same time, putting your money into different schemes is not the right solution; instead, you might be investing in several underperforming funds, and it could be a hassle to manage your SIPs. Alternatively, you should invest in a few schemes (4-5 schemes) which provide overall market exposure, and you can easily track your investments.

4.Timing the Market
We are not traders, we are investors. Traders/ Speculators are the ones who need to inspect the market minute to minute. On the other end we as investors, most of us are salaried people and do afford to set aside savings every month. So the best approach to invest in Mutual Funds is through a regular plan, meaning Systematic Investment Plan (SIPs). This practice will let the money grow over the investment tenure and helps you invest in a disciplined manner. Remember, with Mutual Funds, it’s the time in the market that matters and not timing the market.

5. Stopping SIPs when the market is down
It’s common amongst investors to panic and stop their SIPs when the markets are down due to fear of loss. However, investors forget the fact that it is in the bearish phase that you can buy more units at a lower price, and this will help you to achieve your long-term goals. It is important to stay invested with SIPs to reap benefits rather than changing it with the market sentiments. Remember! Every bear trend is followed by the bull, resulting in the recovery of the market.

6.Not Reviewing
It is after all your money at stake. Investors must track the performance of their investments, and it is best that you do it at a regular interval. Failing to do so can cost you a fortune. Make it a habit to conduct a periodical review of all your Mutual Fund schemes; this not only helps you to track the funds in your portfolio but also helps to get rid of the ones that are underperforming.

“Successful investment is about managing risk, not avoiding it. “
Benjamin Graham