The Mutual Fund Success Roadmap

The Mutual Fund Success Roadmap

1. Preparation (The Foundation)

   • KYC Compliance: Link Aadhaar/PAN + Bank Account.

   • Emergency Fund: Ensure you have 3-6 months of expenses saved before investing.

2. Goal Setting (The "Why")

   • Short Term (<3 years): Focus on Capital Preservation (Debt/Liquid Funds).

   • Long Term (>5 years): Focus on Wealth Creation (Equity/Index Funds).

3. Strategy Selection (The "How")

   • SIP (Recommended): Automated monthly discipline.

   • Lump Sum: One-time investment for surplus cash.

4. Fund Selection (The "What")

   • Check Expense Ratio (Aim for <1%).

   • Check Direct Plan (Avoid Regular plans).

   • Review Past Performance (Compare against the Benchmark, not just the number).

5. Execution & Maintenance

   • Start Investing: Use a Direct platform or AMC website.

   • Annual Review: Check your portfolio once a year to rebalance if needed.

   • Stay Invested: Ignore short-term market volatility.