Earn while you sleep! Rich tips for you! Get wealthy, here is what you need to do now

Earn while you sleep! Every salaried individual, every entrepreneur wants to become rich from the money they invest. Yes, this money that they save from their earnings and invest further has teh potential to create enormous profit and make the investor very wealthy - even as he or she sleeps! What they need to do is invest and keep investing every month and ...sleep! Keep track, but do not make frequent changes to your investment unless something has gone extraordinarily wrong. 

Mutual fund investments are this option. Investors avail of the benefit of stock market performance without directly investing in shares. However, before making an investment in equity mutual funds, one needs to diversify one's portfolio and do some basic research like the comparison of returns from other investment tools like bank fixed deposit, public provident fund or PPF and other mutual fund plans.

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On how to diversify mutual fund portfolio, Kshitiz Mahajan, Co-founder at Complete Circle Consultants said, "Diversification of the portfolio is the must. Putting the entire amount in one investment tool is not a wise idea. One should have investments in debt funds, equity funds and other investment options like bank fixed deposit, PPF etc." On what should be the ideal way of diversification of one's portfolio Kshitiz Mahajan said that an investor should have investments in 5-6 equity mutual funds, which includes small-cap, mid-cap, large-cap, multi-cap and balanced finds. He advised 2-3 debt funds, 1-2 balanced funds and 2-3 other investment tools like PPF, Sukanya Samriddhi Yojana, National Pension System scheme, etc.

On how to select a mutual fund plan, Kartik Jhaveri, Director — Wealth management at Transcend Consultants said, "Right way to select a mutual fund plan is to look at the returns given by the mutual fund plan and the stock market return in that time period. Since a mutual fund policy has an asset manager whose job is to outperform the stock market performance. If the mutual fund plan's return is less than the stock market, then it's better to avoid the plan. Best mutual fund plans are those which have outperformed share market by at least 2.5 per cent to 4 per cent." Jhaveri advised mutual fund investors to have a look at the benchmark of each mutual fund category before finalising a mutual fund plan.

Now that you know, what are you waiting for? Just go, invest and don't forget to sleep on it!