6 Gurumantra of Investment in Mutual Funds: Learn from Tata Asset Management

New Delhi. If you want to make wealth, then most important it is that you stay in the market for a long time. Start quickly and maintain investment continuously, so that your money increases over time. Mutual funds make this journey easier, as they give different types of investment options. To make a good portfolio, it is important that you be present in the market at all times, no matter what the situation is.

Many investors get out of panic in the ups and downs of the market, due to which they lose the right opportunity. If you maintain investment for a long time through mutual funds and create balance in different categories, then the effect of market fluctuations decreases. This strategy is the key to making real wealth. The product head style of Tata Asset Management Ganga has given 6 such Gurmantra which can help you in making money. Let us know about them in detail.

There are many special industries in the midcap and smallcap segment, while largecap funds have more liquidity, which reduces losses at the time of recession. If you are not able to decide when to invest in which fund, then flaxicap and multicap funds are the right choice. They automatically make a balance in different market cap.

Keep sector funds in satellite portfolio

Sector and themetic funds brings uniqueness to the portfolio. These funds invest in sectors in which low exposure is available in diversified funds. Choose 2-3 top sector or themetic funds, which can give better returns in medium and long term.

The combination of index funds (passive) and active funds balances portfolio. In active funds, fund managers choose stocks, while in passives invest according to the index. The mixture of both gives you better security and growth in different market phase.

Volatibility control from hybrid funds

Balanced advantage or multi asset funds are helpful in market fluctuations. These funds change the balance of equity and date at the right time, so that investors do not get out of the market in panic. Money remains invested in such funds for a long time and can catch growth at the right time.

Funds with mental and quality factor strategy beat the index in the long run. Apart from this, include gold and silver ETFs in the portfolio, as they are less than the corruption equity and they act as hedge against inflation and geo-political risk.

This article has been prepared only for the purpose of educational and information. The idea expressed in this is the personal views of the concerned expert. Before investing in mutual funds or other investment products, consult your financial advisor or certified expert. Investment markets are subject to risks and previous returns do not guarantee future. There will be no responsibility or accountability of Network 18 for any decision based on the content of this article.