BASICS YOU MUST KNOW BEFORE INVESTING IN MUTUAL FUNDS
If you have never invested in a mutual fund (MF) and you want to put the first sum of money into it, there are certain things you need to deal with. Basic portfolio Take a look at your existing investment portfolio and try to plug the essential gaps that a MF cannot fill. Do you have a Public Welfare Fund account? Possibly the best risk-free rate of return instrument, comes with a lock of 15 years. You can obtain a deduction benefit from section 80C income tax up to a maximum investment of Rs.1.5 lakh to year. Get adequate medical insurance and a term life insurance plan if you have dependents. Many investors who have not yet invested in Mutual Fund often have unit-linked insurance plans that they do not need. Now, there is no lock-in and delivery charge if withdraw after holding the policy for five years. Check the performance of your unit-linked insurance plan and make a decision if you want to withdraw and reinvest the proceeds in an mutual fund scheme. Adviser Unless
