DIY investment is good for investors having good domain expertise

An investor should approach a financial adviser to make sure that the financial goals that they set for themselves are realistic, measurable and achievable

Investment in mutual fund is beneficial to fulfil the long-term goals. There are several Equity/Debt/Hybrid schemes available in mutual funds to suit individual need depending upon investor’s risk profile, time horizon and financial goals. Many a times, investor associates mutual fund with equity only. Hence, one of the key things to remember while doing mutual fund investment is to have absolute clarity on one’s own financial goals and basis that the selection of schemes should be done. Goal-setting is most important if you want to start investing in mutual fund. Once the goal is set, the investors exactly know the number of years he/she has with them, and can accordingly choose the investment plan.

It is equally important to remember that one should not get carried away by the returns of the particular schemes, but to focus on creating a balanced mutual portfolio with proper asset allocation based on at what stage of life the individual investors is, what is his/her risk profile, among other things.

DIY investment is good for investors having good domain expertise and time as one has to regular monitor the funds.

Apart from this, investor should also keep himself aware of the regulatory changes that may keep coming along the way. A DIY investor should approach a financial adviser to make sure that the financial goals that he/she sets for himself/herself are realistic, measurable and achievable after proper risk profiling. Once that is done, then the next step is to create investment portfolio with proper asset allocation by deciding appropriate schemes and start the journey of investments. It is important to monitor the performance on a regular basis and make changes to the portfolio as per changing needs. If the proper process is followed then the DIY investor is better placed to achieve his financial goals in due course with guidance from his financial adviser.

– The writer is an independent financial advisor

This article has been exclusively created for UTI SWATANTRA & was originally posted on Times of India, Pune on 18th September 2018