DOs and DONTs : Investing in Mutual Funds
DOs
- Read the offer document carefully before investing.
- Note that investments in Mutual Funds may be risky.
- Mention your bank account number in the application form.
- Invest in a scheme depending upon your investment objective and risk appetite.
- Note that Net Asset Value of a scheme is subject to change depending uponmarket conditions.
- Insist for a copy of the offer document/key information memorandum beforeinvesting.
- Note that past performance of a scheme is not indicative of future performance.ü Past performance of a scheme may or may not be sustained in future.
- Keep track of the Net Asset Value of a scheme, where you have invested, on aregular basis.
- Ensure that you receive an account statement for the money that you haveinvested.
- Update yourself on the performance of the scheme on a regular basis.
DON‘TS
- Do not invest in a scheme just because somebody is offering you a commissionor other incentive, gifts etc.
- Do not get carried away by the name of the scheme/Mutual Fund.
- Do not fall prey to promises of unrealistic returns.
- Do not forget to take note of risks involved in the investment.
- Do not hesitate to approach concerned persons and then the appropriateauthorities for any problem.
- Do not deal with any agent/broker dealer who is not registered with Associationof Mutual Funds in India (AMFI).
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paras gupta said,
March 3, 2008 @ 9:55 am
I am a finance student of MBA and wanna make a career in financial markets. Its a very good informative site not only for whom those are making a career in it but also for investors.
Thanks & regards.
Yours truly