Things to note while investing in Mutual Funds


We check every detail before making a massive purchase in our daily lives. The decision has a significant effect on our finances and life. We consider each component before shortlisting, whether a property, appliance, or valuables. This makes us equipped to form an informed opinion. The same tactic is useful while investing in the Stock Market. Given that it is risky due to market fluctuations, do prepare before entering it.

Precisely why you get different study materials to learn about the same. Use them to understand how investing in Mutual Funds works. Once you become knowledgeable, you enjoy the investing experience instead of stressing. When learning, you come across various aspects. You need not understand everything to feel ready. You may start investing by considering the essential elements and learning as you go. Here are some:

Risk levels

We all know investing in shares is risky. But you get different categories with varying risk levels. Debt Funds are usually considered less risky than Equities. But you cannot use a standard parameter to judge this. You must measure the risk factor based on your risk appetite. If you think higher returns and moderate risk are not scary, your risk parameters are. You should choose the asset classes and derivatives accordingly.


Now, fund houses curate the Mutual Funds with diversified shares. They include Equities, Debt Instruments, Derivatives, etc. All have varying risk levels. Also, different industries get targeted to spread the risk. This is known as diversification which helps you avert losses instead of investing in one asset class. Although fund managers manage your holdings, you make the final decision. Hence, regularly study your portfolio for diversification.


It is common for new investors to get lured with high returns. They instantly buy securities that have performed well. But longevity is an essential aspect. Ignoring it affects the share performance. Hence, if you find a high yielding asset class, assess its past performance. Ideally, the past three years should tell you its potential to give steady returns. Study this record and see the fluctuating trends before opting in.


There are many methods to invest in Mutual Funds. You may do it through an asset management company for streamlined investing. Another approach is to put your money in a regular plan through a distributor or a broker. A direct plan incurs fewer expenses than the traditional approach. Hence, choose based on your convenience and trading knowledge. A systematic investment plan is suitable if you have a monthly income.


Gaining or losing depends on the time factor in the Stock Market. Therefore, understand when to invest. This requires a lot of practice and analysis of the market conditions. You get regular insights on the same through trading platforms and apps. Refer to them often for forming your buying and selling decision. Also, consider your investment goals while choosing assets.

Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100.  AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.