Mutual funds

I’m sticking with UTI index fund and PPFAS Flexi Cap fund. Some into SBI Liquid fund too.

Some pointers:

1. The AMC/fund house should be a good/ethical one, do research on the AMC too.

2. Look at the 1,3,5 year returns

3. Look for the expense ratio, exit load - lower the better

4. Assess your risk and choose funds accordingly. Like read about the different kinds of funds and don’t put money in anything that you don’t understand.

5. Stay away from the funds that have a considerable exposure to the “nEw Age TeCh IPOs”, chances are that the buy side and sell side are getting in bed together. Most of us don’t have the skill/experience/competence to find out whether they’ll give returns, most of them eroded wealth.

6. Look at the companies which the fund is investing in, some funds will have a good 1yr, 2yr return since they were holding Adani stocks, may not be the case for future returns.

7. Always read more and know what you’re putting money into, not from a mutual fund perspective, but the markets as a whole. I remember a fund manager saying that’ there’s no such thing as a buy and forget, you need to keep on tracking stuff.

8. Do not over diversify ie, hold too many funds. Some of the stocks will be same.

9. When comparing funds check if there’s overlap of stocks, check out this site: https://thefundoo.com

10. These are good places to do research:

• https://www.valueresearchonline.com

• SOIC youtube channel is very good

I invest through a mutual fund distributor.. this uncle has been advising my dad for more than a decade and although he gets commissions, he does a really good job at guiding us. I also have a direct index fund investment for money given on occasions and by elders..