If you are just starting out with mutual funds
- Build your rules and stick to them.
- An investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... managers who are consistent too have rules and the discipline to follow through these rules each time.
- Your ideal MF portfolio should be a combination of active funds and rules based funds.
- Bond funds help in providing a cushion to your long term portfolio and for very short term parking of funds use liquid funds.
- In investing its not important to be fast, its important to last.
- Diversify across asset class and time.