More about Mutual Funds

More about Mutual Funds
One must understand that Mutual funds are diverse. Each scheme has its own set of
variables, performance indices, objectives and risks. Similarly, every investor has his or her
own set of goals, objectives and aspirations. With such widespread choices, one sie does
not fit all.
While there is no thumb rule to !uantify the number of mutual funds one should invest in.
"nvestment decisions should be based on ones#
1. Risk Appetite
2. Investment Objectives
3. Investible Surplus
$or e%ample# & young investor with a higher disposable income and long'term objectives
might be able to take a higher risk and opt for a large'cap e!uity fund( while a retired
individual with limited means of income and ongoing e%penses, might feel comfortable with
instruments such as income schemes.