Mutual funds are considered to be safe investments in the sense that the fund managers of each fund is responsible for the operation of portfolios having larger exposures in the management of larger funds. However, the other factors are there influencing each mutual fund ie market behaviour, credibility of the company, decision of the Central - government impacting the shares and mutual funds.
However, it is always better to take sound advice from the mutual - fund consultant connected with the bussiness for a minimum of ten years.
You may follow the following tips so as to have better appreciation of your fund-
1) If you are the fresh investor in this area, choose SIP funds of different portfolios such as Debt - fund, Equity, Balanced - fund etc.
2) In each fund, you may start with a minimum of Rs 500/- and raise it further as per capacity.
However, a minimum of Rs 2000/- each month for say at least 60 months in Debt - fund, Index- fund, Equity - fund would lead to better appreciation of your portfolios.
3) Stay invested for a longer time. Don't be panic with the rumours circulated by any quarter.
4) You need to track your portfolios at least in a month, so that you may take remedial steps if required.
5) You may go in the mutual fund magazines especially the Economic Times so as to have better ideas of the market - condition.
6) Procure the investments such as SBI, Birla Sun Life, Tata Digital Index, HDFC Nifty, ICICI Prudential etc.
7) You have to open a Dmat account for the purpose of withdrawal of money if required.