What are the best ways to invest in mutual funds

I am mushtaq from srinagar kashmir, I am 50 years old, I am doing Government job since 25 years bt except GP fund no any scheme or plan taken yet due to fraud and cheating in society.bt recently 9 months back I have started to invest through Shere Khan franchisee mutual fund in SIP type I am investing 22000 rupees per month SIP and portfolio made by adviser I told home whole story i.e I have no any other source of income and no plan taken and i m nearer to retirement from service. As I have 6 years girl and 1 year son no any scheme done I'm sad. As I have also deposited 6 lack rupees in mutual funding as lump sum. But I see no such profit is seeing as the adviser promised at the time of franing portfolio. Whether portfolio is not attractive or Please I read about you please suggest me well as I'm near to retirement from service no any other source of income and no any scheme for childes for there Future and for there marriage for daughter with regard?

Feb 19, 2018 by Mushtaq Ahmad Masoodi, | Mutual Fund

In your query you have not mentioned the mutual fund scheme names in which you have invested through SIPs and lump sum. Therefore, I am unable to comment on that. However, I will make some general suggestions about mutual funds and how it may help you or your children in future.

1. Investing in mutual funds should depend on two things - 1) What is your risk profile 2) How long you can remain invested? For example - In case you can remain invested up-till 3 years then long term debt funds could be good. However, if you can remain invested up-till 5 years then balanced and equity funds could be the best option.

Now coming back to risk, assuming that you can remain invested for 5 years or more but cannot take much risk, then balanced fund could be a good option. However, if you have higher risk appetite, then equity mutual funds could be a better option. Therefore, choose a category of fund depending upon your risk taking ability and time horizon and select the top fund in that category.

2. You have started investing only 9 months back and therefore, you should not get jittery so soon. As you are investing through SIPs you should continue it for the long run. The longer the investment tenure the better and stable could be your returns. The same logic applies to your lump sum investments as well. Stick to it for long time.. As I said earlier if the lump sum investment is in equity or balanced funds then you should have minimum 5 years investment horizon.

3. For your son and daughter’s future and also about your retirement, you should link your SIP investments with long term goals (at least till you retirement). Your current monthly SIP is Rs 22,000 and if you can continue it for 5 years at least, then you can expect a corpus of over Rs 18 Lakhs against your investment of Rs 13.20 Lakhs (I am assuming annual return of 12% if your SIP is in equity funds)

Most importantly you should talk to your mutual fund advisor and learn more about mutual funds. I am referring two sections on our website which might help you in this –

https://www.advisorkhoj.com/articles

https://www.advisorkhoj.com/mutual-funds

Wishing you the best !

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