Tips on MF's

OK. So this is my entry on 'personal finance management'. This post is my reference for
buying mutual funds. I am not yet well versed with stocks,so started off with MF's.


1. When investing in MF's put more money with diversified funds.
Reason: Specialized funds are very similar to stocks.There is no real benefit of diversification
that we get with MF's. Its better to invest in stocks instead of specific funds.

2. When investing in MF's NAV's don't matter much.
Reason: NAV is just a value and a higher value doesnt mean its costly.Rather check for performance of the fund. You pay money only for the 'performance' and not for the NAV. The only time the NAV matters is when a dividend is declared.Dividend is declared on the number of units and a higher NAV would mean lesser units.

3. Keep track of your Mutual funds.
The work is not over once you invest your money. You should keep track of it
periodically. Use a good portfolio tracker like rediff money tracker or the money control one.
How do you keep track of your fund's performance?
All AMCs provide you with their annual report, a half-yearly report (unaudited results)
and a quarterly factsheet/newsletter.

I'll update this will information on MF's as and when I find it.