Crucial Lessons: Why Some Lose Money in 'Safe' Mutual Funds

 
*Construction is easy, destruction is easy. But maintenance is tough*. This is true for many aspects of life, such as relationships, health and wealth. Let me give you some examples. In relationships, some people fall in love at first sight, but they also divorce at first fight. They don't invest time and effort to nurture their bond and overcome their differences. They don't have a process to communicate and resolve conflicts. In health, some people can build or lose muscles quickly, but they struggle to keep them. They don't follow a consistent diet and exercise routine. They don't have a process to monitor and adjust their habits. *Intensity doesn't matter but intention matters*

  In wealth, some people can buy or sell funds with a click of a button, but they find it hard to grow their money. They don't have a strategy to diversify and rebalance their portfolio. They don't have a process to evaluate and select funds. To maintain anything in life, we need a process. A process is a set of steps that we follow regularly to achieve our goals. A process helps us stay focused, disciplined and resilient. For example, if you want to invest in mutual funds, you need a process to choose the right funds for your risk profile and return expectations. You also need a process to review and rebalance your portfolio periodically. One possible process is to invest in low risk, medium risk and high return funds, and rebalance them every six months. This way, you can capture the upside potential of the market while reducing the downside risk. Currently, there are two new funds launched by consistent performing AMCs that you can consider for your portfolio: Baroda BNP Small Cap Fund (high return) and Edelweiss Multicap Fund (medium risk return). The fund manager of Baroda BNP Small Cap Fund suggests investing through SIPs, while the fund manager of Edelweiss Multicap Fund suggests investing through lumpsums. Additionally, you can invest more or less depending on the market movements. For instance, you can invest more when the market declines by 10% or more, or invest less when the market grows by 10% or more.

  I hope this blog post has given you some insights on how to maintain your relationships, health and wealth with a process. Remember, construction is easy, destruction is easy. But maintenance is tough. Contact Karan 9510466777 for investment in the above mentioned mutual fund.