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Five things to know before investing in mutual funds

By Lokmat English Desk | Updated: March 6, 2023 19:44 IST

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Everyone wants to invest their money in the right place and get good returns. For those who want to insulate themselves from stock market risk, but want to earn higher returns than FDs (Fixed Deposits), investing in mutual funds can be a good idea.
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Meanwhile, here are some things to keep in mind before investing in mutual funds, so that you don't face any losses.
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1. Before investing in any mutual fund there are some things to keep in mind. Choose mutual funds with lower expense ratio. This is the cost of managing the mutual fund. It is very important to remember this.
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2. There are a few things to keep in mind when it comes to taxes as well. Keep in mind the Taxation of Equity, Loan and Balanced Mutual Fund Schemes and choose the Mutual Fund accordingly.
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3. You should check the mutual fund portfolio to determine the quality of investment. Also, check which companies are included in that mutual fund. This will make it easier to understand in which companies your money is being invested.
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4. You should have borrowing facility on mutual funds. Along with this, check the exit load of the mutual fund, while exiting the investment, also be aware of the charges charged by the AMC.
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5. If you also want to invest in share market, visit 5paisa.com and make your investment journey even better. Also create your demat account at 5paisa.com with DJ2100 - Coupon Code and avail the offer benefits.
Tags: Mutual FundsFixed Deposit
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