From time to time, the mutual fund investment has proven itself as one of the most convenient and risk-free investment options in the financial market. Mutual funds offer great returns and security to investors on the investments that they are making. Once you have built your portfolio then you can start investing in the mutual funds as per your risk profile.
The mutual fund investment process is different in several ways than other investment options. In the case of mutual funds, money is collected by the Asset Management Companies or AMCs; then this collected asset gets allocated in different funds like money market, securities, equities and debt. But the investors are given the full right to allocate their funds in between these available fund options in accordance to their portfolio. So, it is natural that any smart investor will diversify their mutual fund investments by allocating their assets in different fund options to receive great returns.
Often this diversification of the mutual fund investments makes it harder for the investors to track the performance and manage their investments. So, it is always necessary to follow proper guidelines for managing your investments. But what are these guidelines or steps that we talk about? Well, fear no more! See the steps given below and follow them to manage your investments and get huge returns without any hassle:
- The Wing-It Strategy:
Well, this is the basic strategy that most of the beginners follow. At the very beginning when you are trying to get accustomed to the mutual funds and your portfolio does not offer you any proper provision for managing the investments that you have made; then this can be your winning strategy. Though it does not help you to get huge returns but it is one of the best strategies that the beginners can follow.
- Buy and Hold:
Yes! This is one of the best strategies that the experienced investors use to manage their mutual fund investments. But what makes the buy and hold strategy one of the most intelligent investment management strategies? Well, a simple probability calculation will tell you the reason. Every investment option has to endure the ups and downs of the financial market. But the difference in the probability in the ups and downs varies greatly when it comes to mutual funds. The chance of the market going up is 75 percent whereas the probability of the market going down is only 25 percent. Hence, you can easily understand why the buy and hold strategy is an ingenious policy. If you buy and hold a mutual fund then you can go through the ups and downs in the market to enjoy the 75 percent profit in your investment. Does not that sound fantastic?
- Market timing technique:
One thing has to be admitted if you have full trust on your precision and skills as an investor then this strategy can be a game changer for managing your investments. Why did we mention about precision? Well, look at the title of the technique! The market timing technique requires you to move in your assets and move it out during the best times. Yes! You need to understand that the best time to move your money in is when the market is low whereas take out your money when the market is high. If you can perform it with absolute precision at the right time then there will be no stopping for you. So, timing is the most important thing here!
Though there are several other techniques that you can employ to invest your money but the ones mentioned above are the best. So, use these techniques and manage your investments efficiently to receive huge returns. You can also visit Upwardly’s Mutual Fund investment portal which will make your investment systematic and simplified.