Whenever you invest in a mutual fund (MF), your goal is to earn huge profits. Yes, seeking answers to the perennial question, 'how to get rich' will probably lead everyone towards investment in mutual funds. However, in order to earn big profits, it is important that investors keep their portfolio clean. A clean portfolio gives you healthy returns over the long term. The road to riches involves doing many small things in a focussed way.

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So, how to prepare a clean investment portfolio? And how to get big profits? In Zee Business TV's Mutual Fund Helpline show, Colonel Sanjeev Govila, CEO, Military Initiatives, shares his learnings on how to earn huge profits from mutual funds.

I. Clean portfolio gives healthy returns

1.  Invest for each life goal
2. Short term goal or long term goal, they can be achived through smart investments
3. Longer the target, longer the investment
4. While expecting returns from investment, always keep inflation in mind
5 Goals can be achieved by choosing the correct asset class
6. Investment in equity is better if you have long-term goals
7 Corporate FD, debt funds are good options if you are looking for short term goals

II. Why is target based investment necessary?

1. The first step of investment is to set goals
2. Investing by setting goals has many benefits
3. Know how much and where to invest?
4. Goal based investment reduces financial worries
5. You will have ample funds when your goal is closer to achieve
6. Investment without target is worth-less
7. Withdraw funds for every small and big requirement

III. Risk calculation

Risk is one of the most important factors to be kept in mind, while choosing an instrument for investment

1. Advisor helps you ascertain your risk appetite
2. Be sure to assess your risk potential before investing
3. Measure risk potential on different parameters before investing
4. The right investment strategy protects you from losses.

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IV. Excess funds in portfolio

1. Diversifying the portfolio is always beneficial
2. Over diversification investment is dangerous
3. Keep it simple, as it is difficult to monitor too many funds

V. How many funds should be there in the portfolio?

1. 6-7 funds are sufficient in an ideal investment portfolio.
2. Number of funds may increase with time
3. Portfolio value can be increased for special needs
4. Ideal portfolio depends on your goals
5. Investor's risk profile, age, and other things are also important for portfolio is also important

VI. Review portfolio

1. Review your portfolio periodically
2. Better to review at least once in 6 months
3. Reviewing your portfolio let's you know about the performance of your fund

Sanjeev's Preferred Funds:

Long-term

> SBI Small Cap Fund
> L&T Mid Cap Fund
> HDFC Mid Cap Opportunities Fund
> Kotak Standard Multi Cap Fund
> Motilal Oswal Multi Cap 35 Fund
> Mirae Asset Large Cap Fund
> Axis Blue Chip Fund

Medium-term

> Axis Blue Chip Fund
> Mirae Asset Hybrid Equity Fund
> ICICI Pru Balanced Advantage Fund

Debt funds

> ICICI Prudential Regular Savings Fund
> Franklin India Corporate Debt Fund

Short-term

> SBI Magnum Low Duration Fund
> Kotak