I have got 42% annual return from last 3 years on my selected mutual fund as of the time of writing this post . And if you haven't invest in mutual fund yet ,this is the right time to do . A lot of people ask me what strategies i have used for getting more than 40% annual return through mutual fund. And here i am answering on how to get more than 40% or much Higher returns through mutual fund.
In this post , I will talk about some practical experience which will help you to increase return on investment (ROI) in mutual fund. But first,let me talk about something important. These tips/strategies are all about common sense , and just about anyone get higher return without a doubt by just being a smart.
That's the open secret to be successful in mutual fund. But success will kiss your feet only if you implement these tips/startigies consistently. Start implementing these steps to increase your annual return on mutual fund.
Sound's fair? Let's look what actual Mutual fund is and How we can get maximum return . Excited!!
What is Mutual fund?
Many people think Mutual fund is a Gamble like share market if your luck is good you will win and if your luck is bad you will loose. Some people say it is a safer method to earn higher return in short period of time. But What actual Mutual fund is Let's see!!
"Mutual fund is a company managed by professional who takes money from investors/public and invest that money in various sectors like stock, securities and bond etc." It is one type of investment where you can earn good amount of return in longer term as your money is managed by experts.Let's understand various terms used in mutual fund and how to start investing in mutual fund.
What is SIP and Lumpsum in mutual fund?
SIP is a systematic investment plan through which we can invest our money monthly, quarterly, half years and yearly as per our choice. The minimum amount required to start SIP is RS 500 only , some company even keeping minimum amount to Rs 100 only. In other words you can also name as RD (Recurring deposit).
Lumpsum is a one time investment plan like fixed deposit (FD) where you can invest some amount of money for fixed years like 5years , 10 years etc.
Note - Preferred SIP over Lumpsum as it can adjust fluctuations and give good amount of return over long term. This is not a financial advise it's my personal experience.
When to start investing in mutual fund?
Many people want to start investing in mutual fund but they don't know whether it is the right time to start investing or not. According to me best time to start investing is 10 years ago or right now. Let's understand by an example
1 Kg Wheat price in 2010 = RS 5 per Kg Wheat price now = Rs 40
If you have invest 1000 Rs in 2010 you will get 200 kg wheat , value of that wheat on today will be Rs 8000 , Approx 800% return . And the price of wheat after 10 years will be around 200 Rs approx. If you invest 4000 Rs now , value after 10 years will be 20000 Rs , so this is the right time to invest .
Which app is best for mutual fund?
There are lots of app through which you can invest in mutual fund. But i am suggesting one app that i am using
Upstox - Upstox is a most use investment platform and probably the simplest app that can easily let you invest in mutual fund and share market also.
I am also using Upstox app and it is very easy to use . I've been trading with them and thought you’d love it too! Upstox is one of India's largest and fastest-growing investment platforms with over 60 lakh users. Recently they’ve introduced a new app, which is swifter, smarter, smoother and easy-to-use, for both pro traders and beginners. It allows you to invest in Stocks, Futures, Options, Mutual Funds, IPOs and more and offers Rs. 1000 brokerage credit valid for the first 30 days. Opening an account is fast and paperless! Sign up now with my link to open your account:
Are mutual fund a good investment?
Investing in a Mutual Fund scheme to achieve your goal is a wise decision because they offer several benefits such as diversification, ease of investing, professional management, tax benefits, etc. Furthermore, choosing a method of investing regularly in mutual funds like a Systematic Investment Plan (SIP) to meet your target is again a smart choice.
It offers benefits such as –
Rupee cost averaging: It means you can get more units when the Net asset value of the scheme (NAV) is low and fewer units when the NAV of the scheme is high. This helps in averaging out your cost of investment and tackling market volatility.
Power of compounding: When your earned return is reinvested, you have the potential to generate additional returns. Simply put, you earn returns on both a principal and the accumulated returns.
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