Guidelines of Mutual Fund Investment

To make profit or gain from mutual fund investment. I invested regularly and topped up when I had additional cash on hand. Apart from regular top up to my investment. I had a more disciplined approved and specific goals, objectives and “guidelines:. They included:-Understanding Long-term market behaviour
The stock markets are indicative of a country’s economy. A country with a strong economic growth, rising income and commodative capital market will eventually enjoy long-term returns. As a long-term investor, i should allow time to work for me and iron out short-term volatility.Understanding investment opportunities
The better you understand the risk, the more patient and less emotional you will be with your investments. If you don’t understand investment opportunity, do not invest.Choosing the right fund manager
It is not necessary to have the best performing fund manager; importance should be placed on understanding the fund and the fund manager. Investors today have the benefit of evaluating funds with track records that exceed 10 years. There are a range of funds that has provided consistent returns in the last 10 years.Market timing is difficult but not investing is worse
With global equities markets being so linked today, the situation in one continent affects others. This can be dispiriting, but it is actually worse to miss out on the opportunity to invest.Dollar cost averaging is your best friend.
Star your investment plan by dollar cost averaging, It reduces the emotional stress of choosing when to invest. It also smoothens out some of the market volatility.