BFC Capital proudly hosted its 261st Quality Circle Program on July 5, 2024, at Neo Hub Co-Working Space, Cyber Heights. The event was a resounding success, featuring an engaging and insightful presentation by our AVP, Vikas Kr. Sah. He shared expert knowledge on the art of investing, equipping attendees with valuable financial strategies and investment insights. The session highlighted BFC Capital’s ongoing commitment to educating and empowering investors for a secure and prosperous financial future.
Is it better to invest in mutual funds via SIP or lump sum?
Your financial circumstances and the state of the market will determine this.
If you make money on a regular basis, the Systematic Investment Plan (SIP) is optimal. By making small investments at regular intervals, it lessens the effect of market fluctuations. This strategy might eventually increase returns by enabling you to purchase more units at low prices and fewer at high ones. When you have extra money to invest, a lump sum is the best option. Because you invest the full sum all at once, your profits depend on the market’s timing.
Can I transfer my mutual fund holdings to another person?
No, mutual funds can’t be transferred while you’re alive because they’re linked to your PAN. However, your nominee may inherit them in the event of your death.
Redeeming your mutual fund units and transferring the money is the ideal option if you want to send money to someone. Always include a nominee with your assets to spare your family from future legal issues.
How do I choose the best mutual fund?
Your objectives and risk tolerance will determine which mutual fund is ideal for you. How to make a decision: Establish Your Objective. Are you making investments for asset preservation, consistent income, or long-term growth?
Evaluate Your Risk Tolerance: Choose equity funds if you can tolerate a high level of risk. Debt funds are preferable if stability is your preference.
Examine performance by contrasting returns over three, five, and ten years with its benchmark.
Examine the expenses. Returns are reduced by a high expense ratio. Select funds that have fewer expenses.
Assess the Fund Manager: A competent manager can have an impact. Examine their history.
Examine the fund’s exit load and lock-in period to be certain it provides the freedom you want.
Finding the mutual fund that best suits your demands is the first step in selecting the proper one.
Should I rebalance my mutual fund portfolio?
Sure! To maintain the proper mix of investments in your portfolio, you must rebalance it, just as you would adjust your budget based on your spending..
The balance of your portfolio may change over time as a result of market fluctuations. If stocks do well, they can take up more of your portfolio, increasing your risk by selling underperforming assets and reinvesting in those that are performing well.
Profits can be booked to methodically lock in gains.
Maintain your focus on your objectives. Your portfolio should evolve along with your financial circumstances.
Reviewing and adjusting your investments once a year or once every six months is a smart idea.
