Most investors focus on returns while choosing a mutual fund scheme. Instead of merely looking at the returns in isolation, they need to understand the excess returns their fund generates when compared to the benchmark.
Systematic investment plans or SIPs are a great investment strategy to create wealth over a long period. SIPs in three equity mutual fund categories offered fabulous returns over a short period of three years. Do you want to know which are those categories?
Like mutual funds, you can invest in stocks through SIPs too. However, there is a catch – you must have an eye on market movements, their effects on the stocks you have chosen and your ability to either switch between stocks or pause your SIPs when no longer required.
"In thematic funds, investors often enter at the wrong time and often join after a period of high returns and get disappointed. With this move, we want to encourage investors to invest systematically and even out volatility," said Radhika Gupta, CEO of Edelweiss Mutual Fund.