Mistakes to Be Avoided While Investing In Mutual Funds
When you decide to invest in mutual funds you may get overwhelmed. Don’t worry, it’s not only you who becomes unsure of what to do but many other seniors like you do the same. This is because of the number of options available when you want to invest in mutual fund! Most of time it is found that people do mistake and they do not know what to do after that. Just to ensure that you do not fall prey to such situation here are few things that you must not do when you are planning to invest in mutual funds after a particular age.
Ignoring your financial goals
When you are investing this is the worst thing that can happen. Whether you are investing in mutual funds or real estate make sure you have set your goals. Are you investing for wealth creation or for getting a monthly income? When you invest without any goal you will be doing something that will not fulfill your need. When you are a senior you cannot do such risky things with the fund that you have accumulated.
Chasing high returns
Most of the time people choose their MF schemes based on the historical returns provided by the particular schemes. However, the truth is that this is not the best way to do so. If you check out you will find that there are a number of schemes that have given good return in the recent past but now they are not doing as good as expected. You will lose interest or even there may be erosion in your capital too. Hence, it is better to study the market and then invest. Just do not invest in anything as it has been giving high returns.
Investing in too many schemes
The most common mistake that is not only made by seniors but most investors. They think that they are diversifying their portfolio that will fetch them sure shot return. Actually each mutual fund scheme is a diversified portfolio of different kinds of securities. Thus, what is the need of diversifying again when you are investing in MF? It is rather better to invest in 2 to 3 good mutual fund schemes and then investing further in them.
Investing all your money at one go
You may be thinking that if you can take some risk you will get high return. That is true, but after retirement it is not a good option. Remember that you are now dependent on the money you have in hand. Thus, do not invest all of it in one shot. Invest in your health for 2020 and get medicare advantage http://www.medicareadvantageplans2020.org