Mutual funds are a convenient way to invest your money. Even if you’re starting with small sums, you get the benefit of a professional fund manager who manages your money and decides on which stocks or bond to invest in for you. However, you as an investor should also follow some strategies to build more corpus by investing your monies into mutual funds.
Here are five strategies which you should follow to make more money by investing in mutual funds.
Strategy 1: Diversify your investment
The best way to generate optimum risk-adjusted returns from mutual funds is to build a diversified mutual fund portfolio consisting of multiple asset classes. Doing so also helps you maintain steady return. Manish Kothari - Director & head of mutual funds, Paisabazaar said that the asset allocation and fund selection has to be done on the basis of your financial goals, investment horizon and risk appetite.
