Have you ever wondered what would a new year resolution of an equity investor look like—if there is one?
There are not
many things that an investor should resolve in a new year that can bring about a
real difference to their MF investments
The first and perhaps
one of the most important resolutions is not to own all funds falling within
alphabets A to Z. Remember you are not a collector of MFs but an investor. Diversify
across categories/genre of mutual funds rather than schemes. Know your funds like
categories they belong to and also how have they fared relative not only to
their benchmark but also compared to their peers!
The second
resolution could involve regular evaluation. You don’t need to churn your holdings
in response to every market movement or news headlines published in pink
papers. It does more harm to your portfolio than good.
The last &
perhaps the most important resolution is to embrace SIP. Inculcate a habit of
accumulating MF units through high & lows of the stock market. One way to
derive maximum potential of wealth creation through MF is to increase your SIP
amount regularly (known as STEP UP SIP) with every increment in salary. Other
way is to promise yourself that you will not stop your SIP when market falls.
SIPs are a simple strategy which makes your money work harder than you do.
Remember, you
don’t need smart strategies to make money and/or create wealth from MFs—it’s simple
but boring acts like SIP that evolves into a 2nd. Earning member of
your family that works when you don’t.
We believe that
the 3 strategies and as discussed above can go a long way to help you meet your life’s
goals by putting right amount of money in your hand at the right point of time
Our best wishes
to you
