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Navigating uncertainty by making the right changes
Summary: You may wish to modify your mutual fund portfolio for several reasons. However, it is also essential to go about it smartly. Here are three ways to do it.
We work hard every day and make smart choices when it comes to building our mutual fund portfolio. Our AMC, bank or fund house assesses our goals and risk appetite to find us suitable investments.
Occasionally, the economy throws a curveball at us, and we flinch. There also may be times where we feel our investment curve is flattening. In such situations, we may need to consult our expert fund managers and come up with a different game plan. Part of the plan may involve modifying our MF portfolio to stay on track towards our financially secure future.
Investing in mutual funds comes with its exclusive rewards and risks. During different market cycles, some funds outperform others, while are more vulnerable. These movements can dampen any investor's spirit. However, 'this too shall pass' is a well-adopted adage even in the mutual fund world.
Your MF portfolio is the path to reach your short and long-term financial goals, so chances are the market will correct itself before you need to start worrying. Staying invested is a much better alternative than selling off all your investments.
What you can do is modify mutual fund portfolio. Here are three ideas that could guide you on it:
Mutual funds tied to precious metals like gold tend to give stable returns over a long time. This metal is known to shine even during the most volatile short terms. Gold mutual funds adjust through inflation and a falling currency to give the investor good returns. If you are considering an MF portfolio modification, research the various Gold ETFs or mutual fund options.
An uncertain economy offers you the chance to buy more at less. Take a look at your current mutual fund portfolio to evaluate your most resilient instrument. It could be an excellent time to increase your SIP amounts. You can leverage the benefits of rupee cost averaging to buy more units of a mutual fund when the value is low. Check with your bank or financial advisor if you are underinvested in any mutual fund.
When you consider MF portfolio modification, consider shifting your focus to investing in fundamentally sustainable funds which do not need active management. Putting your money in a passively managed index mutual fund that tracks a robust index such as NIFTY 50 or S&P 500, is a good idea. The fund's inherently diverse nature ensures that you don't have to depend on just one company's fortunes to get you the gains you want.
It is commendable to take an active interest in wanting to modify your mutual fund portfolio. But remember, it always helps to get expert advice and research before you consider overhauling your investments.
You can log in to the digibank by DBS if and when you need to modify MF portfolio. Combine expertise with your vision to achieve the financial goals you want.
DBS Bank offers Mutual Funds that are instant, paperless, signatureless – even transaction fee-less! What’s more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on DBS Bank.
Read up more on Mutual Funds here
Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.
