Mutual Funds: This is what you need to keep in mind while picking a fund

Investing in any financial instrument is not as easy as it sounds. In fact, when it comes to money, nobody likes to take any chance. 

But, should that "fear" of loosing money stop you from investing? No, it shouldn't.

To balance out the risk factor, Mutual Funds come into picture. 

Mutual Funds is still a new financial product for Indians but now the awareness has been increasing due to various educational/awareness creation initiatives as well as due to ‘Mutual Fund Sahi Hai’ campaign. 

Sharing a data, Amol Joshi of PlanRupee said, on data points, total banking deposits in the county are in excess of Rs 100 lakhs crores and mutual funds manage just over Rs 20 Lakhs Crore, making mutual funds about 20% of total banking deposits size.

Though Mutual Funds has been managed by experts, one as an investor should also know how to pick a fund.

Sharing few tips, Ajit Narasimhan, Category Head - Savings and Investments, BankBazaar.com said, "Pick a good fund with a healthy track record and stay invested for the long term. Don’t merely look at short-term performance while choosing a fund. If a fund has underperformed in the short term, examine the fund’s holdings and check the reasons for under performance. Do not take hasty decisions while reviewing the scheme."

Despite banks reducing deposit rates, Mutual Funds are a good investment option