The interest of investors in Mutual Fund Investment is continuously increasing. The reason for this is the good returns received in many schemes of mutual funds in the last few years. If we talk about the year 2022 itself, the multicap category of equity mutual funds has given 13.4% return so far this year. The return of Largecap is 7%. The midcap category has given 10.6 per cent profit to investors this year. Investment in Mutual Funds is subject to market risks. But, if invested in them thoughtfully, good profits can be earned.

For investors with little knowledge of the market in Mutual Funds, it is best and safest to invest through SIP. If the market is stable and there is a possibility of going up in future then investing in lard cap fund is beneficial. Before investing in any fund, do research about it. While choosing SIP, do check the rating of the fund. It is better to invest in funds whose rating is 4-5 stars. Financial advisors say that investors who do not want to take tension and want to get good returns from the stock market in the long run, must invest in mutual funds.

Avoid loss if the market falls

There is a loss in mutual funds when there is a decline in the stock market. Those investing in mutual funds should keep an eye on the market. If the stock market falls by 20 percent from its peak, then one should switch from large cap to mid cap. The reason for this is that if the shares of big companies fall by 20-30 percent, then the shares of small and medium companies may fall by 50-60 percent.

In such a situation, the advantage of buying them would be that as soon as the market recovers, you would get profitable soon. When the market is completely stable, then you invest in large cap funds. You should not invest in too many mutual fund schemes. 5 to 6 schemes are enough to earn money from mutual funds.