Mutual fund investments are the easiest way to access both the equity and debt markets, but some of factors involved in the decision making process makes advice imperative before an investment is done; they are:
A problem of plenty:
There are hundreds of funds classified on asset class, market capitalization, investment style, etc. Each fund has a specific objective and will serve a different purpose in an investor’s portfolio. It requires expertise and time to do the research and choose the right fund. In such a scenario, advice from an expert is required.
Volatile markets:
When markets turn volatile and one needs to monitor the investments closely, to make ‘buy’, ‘hold’, ‘sell’ decisions. Advice from an expert, who has the experience and knowledge, will help investors make this choice between buy, sell and hold.
Managing asset allocation:
One should keep a close watch on their investment portfolio and make adjustments to keep their asset allocation in check with their risk profile and goals. Advice from an expert can help keep the asset allocation in check.
Tax saving help:
If investments are not made in the right products, it can impact the tax liability. Advice from an expert can help investors understand tax implications and judiciously plan their investments accordingly.
The above is only for illustration purpose.
