Post Union Budget 2018, the roller-coaster ride in the market have taught investors that nothing is going to be easy in the investment arena. To gain one need to take risks, but before that the investors should know the risks affecting their portfolio

Gone are the days of casually investing in mutual funds, today's investors need to know how to create a portfolio of funds and what are the strategies and approaches used to construct a portfolio. This article deals with the two basic approaches used to construct mutual fund portfolios.

While investing into mutual funds many a times you notice the word benchmark. But do we know what a benchmark is? Let's understand more about benchmark.

Offer document which is the core document for mutual fund investment is ignored by investors as they find it difficult to understand. But there are some must read aspects into the offer document which investor should look into before investing into the scheme. 

We often hear and read that, “Mutual fund investments are subject to market risk. Please read the scheme related documents carefully.” in multiple languages. But has anyone read it? Do we know what is an offer document and the key information memorandum (KIM)? What does it contain?

Investors usually spread investments across the asset classes to reduce risk. Debt funds are commonly used to cushion market volatility. Credit opportunity fund is a type of debt fund which although is not so popular among the investors is a good investment option.

Every investor wants his investment to outperform. The mutual fund arena is well-known for steady returns in the longer term. But it too needs some diligence and planning to achieve maximum returns.

A new fund offer (NFO) is the first time offer for subscription from newly launched fund. The new fund offers are launched to raise the capital in respect to buy the shares or securities or bonds for the fund from the market. These offerings work similarly to IPOs. 

Diversification is the key to reduce risk. To manage large investments efficiently, proper diversification among the various asset classes is very important. 

Investors usually invest into tax-saving funds at the end of the year that in the last 3-4 months of the financial year to receive a tax shield. Usually, tax-saving funds are utilised for the purpose of tax saving only. But these funds are also equity-linked and even they can reap better returns in the longer run.