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How to evaluate your mutual fund investments?

March 15, 2023

So, you have invested in mutual funds. Congratulations! But if you think this is it then, it really isn’t. In fact, your mutual fund investment journey is just getting started! What do I need to do now, you ask? Evaluate your investments of course! 

Evaluating mutual fund investments can be a daunting task, especially for those who are new to investing. However, with a little bit of guidance, you can become an expert in it in no time!

Tips to evaluate mutual funds

Here are some key parameters on which you can evaluate your mutual fund investments, and become a successful investor in the long run!

  1. Performance

The performance of a mutual fund is one of the most important factors to consider when evaluating it. Look at the fund’s past performance to see how it has performed over different time periods. Look for consistency in performance over the long term rather than just one or two good years.

  1. Expense Ratio

The expense ratio is the annual fee charged by the mutual fund company to manage the fund. It is important to choose a mutual fund with a low expense ratio, as this will directly impact your returns.

  1. Risk

Every mutual fund has a certain level of risk associated with it. You need to assess your risk appetite and choose a mutual fund that matches it. Generally, equity mutual funds are riskier than debt mutual funds.

  1. Fund Manager

The fund manager is the person responsible for making investment decisions on behalf of the investors. Look for a fund manager who has a good track record and has been managing the fund for a reasonable amount of time.

  1. Investment Style

Different mutual funds have different investment styles. Some funds may focus on large-cap stocks, while others may focus on mid-cap or small-cap stocks. Choose a fund that matches your investment goals and fits your investment style.

  1. Fund Size

The size of the mutual fund is also an important factor to consider. A large fund may not necessarily be better than a small fund, but it is important to ensure that the fund is not too small or too large to affect its performance.

  1. Exit Load

An exit load is a fee charged by the mutual fund company if you sell your units before a certain period. It is important to check the exit load before investing in a mutual fund.

By measuring your investments against the factors mentioned above, you can make an informed decision and choose a mutual fund that matches your investment goals and risk appetite. 

Conclusion

You can also take the help of a tool that lets you manage your investments, without you having to do (a lot) of leg work. KFintech’s KFinkart Investor Portal can enable you to track your investments more easily, and take informed decisions to achieve your financial goals in the long run.

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How to make retirement a part of your financial plan?

March 13, 2023

Many people tend to overlook retirement planning in the overall financial plan that they make for themselves, until it’s too late. The truth is that the earlier you start planning for retirement, the better off you’ll be in the long run. One of the most popular investment vehicles for retirement planning is, of course, the government-run National Pension System.

The NPS pension scheme that allows individuals to invest and save for their retirement years. It’s open to all citizens of India between the ages of 18 and 60. Contributions can be made on a regular basis (such as monthly or annually) up until the age of 60.

In this blog, we’ll walk you through the steps of how to include retirement planning in your financial plan, and secure your life after you retire from work, by letting your money work for you!

Determine Your Retirement Goals

There is no retirement planning without determining your retirement goals. For that, you need to ask yourselves some pretty pointed questions! 

  • How much money do you want to have saved up by the time you retire?
  • What kind of lifestyle do you want to live during retirement?
  • Do you plan on travelling or buying a second home?
  • Once you have the answers to these questions, you can start working towards them.

Calculate Your Retirement Needs

After you have determined your retirement goals, you need to do some serious calculations about how much money you will need to save to achieve those goals

Remember to factor these in when you crunch the number:

  • Current age
  • Retirement age
  • Life expectancy
  • Expected retirement expenses.

You can also use online retirement calculators or take a financial advisor’s help to calculate your retirement needs.

Determine Your Retirement Income Sources

Next, you need to figure out where the money that will secure your retirement will come from. This is where the National Pension System, and other long-term investment vehicles will come into play. It’s essential to know how much income you will have during retirement,  so you can plan accordingly and ensure that you have enough money to cover your expenses to live a comfortable life, free of financial stress.

Keep Reviewing Your Plan Every Year

We can’t stress enough how important it is to review and adjust your retirement plan regularly. People change, you will change with them, and your life and retirement goals might also change as you grow older. So you need to make sure that your retirement plan is flexible enough to adapt to those changes. We recommend that you review your retirement plan once a year, at least, and make changes to it accordingly.

Ready?

Get started with opening a NPS account or you want to learn more about it, you can visit here.