Ways to earn good profit out of mutual fund. It is more of commonsense than an art or science.
Mutual funds are the vehicle that help normal individuals to invest together in equity and debt market without taking too much of risk. The mutual funds are created with predetermined investment objectives, to suit different kind of investors. More over mutual funds are made in such a way that they achieve a variety of risk/reward objectives. However, the right way to benefit from mutual funds is to balance the risk as well as the potential to earn. Thats the reason, identifying the right level of risk tolerance, choosing the right schemes and allocation to the right asset class remains the most important factors in ensuring success from a mutual fund portfolio.
First point is the right funds in your Portfolio
When we select funds we need to make sure that we need to have right mix of right funds. For that we need to keep in mind your profile and the kind of fund that matches your profile. If you are a conservative investor, the composition of your portfolio would be different from someone who may have different risk profile and time horizon such as aggressive.