The systematic investment plans (SIPs) in mutual funds have become one of the most popular investments in the last few years. Thanks to compounding, SIPs can help you grow your money exponentially. At 12% annual return, even a meagre amount of Rs 5,000 every month, will grow to Rs 50 lakh in 20 years. For an attractive return, you must select your mutual fund carefully. Though there is no guarantee, you can still the make most from mutual fund investment with these thumb rules.
A critical aspect of investing in equity mutual funds is diversification. How to diversify your mutual fund portfolio? Follow this 5-finger framework.
All you need to do is to spread your mutual fund investment bases on five areas:
