What experts also say on mutual funds?

• Invest according to 
• “YOUR” investment goals!!!
• “YOUR” Risk Profile (Age, other commitments, other investments, etc.)

• BUY AT LOW AND SELL AT HIGH.

• START EARLY (think compounding again!!!)…of course, it’s never too late.

• Flexicap funds generally perform better than Largecaps, Midcaps and Smallcaps funds over long periods.

• Diversify to minimize risk by investing in Gold Funds, International Funds, ideally 5 – 15% in each

• Keep invested for longer periods to minimize transaction taxes on funds and take advantage of indexation benefits. (Min. 1 year for equities and 3 years for some debt funds).

• Consider Systematic Withdrawal approach when redeeming to reduce tax.

• Regularly monitor the performance of your fund. 

• SIP Period should not exceed one year.

• Have a Liquid fund/Ultra Short Term Fund (short term debt funds) along with other funds (under the same MF company) and switch to/from these depending upon economic situation or when nearing a goal especially when nearing retirement. Switching cost very less than redeeming

• Mutual Funds carry risks…but banks aren’t safe either (recollect Lehman Brothers collapse of 2008).