Ways To Enhance Your Mutual Fund Portfolio

1. Ways To Enhance Your Mutual Fund Portfolio As we all know, the annual rate of inflation is 5%-6% that’s why we should invest our money in that asset which gives us more returns than the inflation rate so that we can easily live our life without facing any problem. There are many things in which you can invest your savings like the stock market, commodities, real estate, mutual funds, etc. In this article, we are going to talk about mutual funds, it is the fact, everyone wants higher returns on their investment but most of the people do not know about the ways to enhance their returns that’s why we are going to talk about the ways by the help of which you can enhance your returns on mutual fund portfolio. Here Is The List Of Ways By Which You Can Enhance Your Returns On A Mutual Fund Portfolio: 1. Investors With Market Insight Need To Go For Direct Plans: If you want to get higher returns on your mutual fund portfolio and if you have a good amount of knowledge about mutual funds and the stock market then you should invest your money in direct plans because if you

2. invest in regular plans then your agent gets some commission on your overall returns because of which you get fewer returns on your investment, but if you do not have knowledge about mutual funds and the stock market then do not become greedy invest your money in regular plans because they are safe as compared to direct plans. 2. Diversify Your Mutual Fund Portfolio: Diversification of a portfolio is one of the most important steps in order to gain higher returns on your investment. In mutual funds, you will get four types of mutual funds. Large-cap mutual fund. Mid-cap mutual fund. Small-cap mutual fund. Flexi mutual fund. These are the types of mutual fund available in market. Large cap mutual funds are the safest among all and if you want to take risk then you can invest your money in mid-cap and small cap mutual funds. But if you want to invest your money in all sectors like large-cap, mid-cap, and small-cap then you can invest your money in flexi mutual funds. They invest your money in every sector of the market so that you can score everywhere, if you choose the right flexi fund then it will definitely give you higher returns on your investment. 3. Plan Your Exit From Mutual Fund: It is also the most important part if you want to get higher returns on your investment. If you redeem your money in less than one year then you have to pay an exit load on your investment which is usually 1% which reduces your overall return by 1%, suppose if your invested amount is Rs.10lakhs then you have to pay Rs.10000 on your investment, that’s why you should redeem your money after one years so that you do not have to pay an exit load on your investment. If you want to save your tax then you can invest your money in tax saving funds which are also known as ELSS funds, but in these funds you are not able to redeem your money before 3 years.