What are the ways to optimise mutual funds returns?
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There are several ways to optimise mutual fund returns as under:
Always opt for direct funds over regular MFs. These plans generally fetch you 1% to 1.5% higher returns as compared to regular mutual funds. This is because you avoid paying any fees or commission, resulting in more of your money being invested.
Opt for SIPs over lumpsum investments. This allows you to start small, slowly increase your investments over time and reap the benefits of compounding interest.
It is also wise to diversify your investments. This ensures that your losses, if any, are kept to a minimum in case of any market fluctuations.