ET Classroom: Your guide to building a smart mutual fund portfolio
Nearly 69 lakh new investors entered mutual funds in the past year, yet financial planners warn that many of these new entrants are making uninformed decisions by chasing recent top‑performing schemes or acting on informal advice instead of aligning their choices with their personal investing profile. Experts cited by the feature emphasise the importance of starting with clarity on investment goals, time horizon and risk appetite before selecting mutual funds. The article points out that funds should be chosen as tools to build portfolios tailored to individual objectives rather than as standalone bets. Also highlighted is the risk of trend‑following behaviour: putting money into funds simply because they have done well recently may leave investors exposed when market dynamics shift. The piece serves as a reminder that mutual fund investing is not just about picking funds but about framing an investment strategy appropriate to one’s personal financial plan.
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