How to make good profit?

How to make good profit with Mutual Funds

In bank deposit (FD/RD), your money grows by a small bit everyday.

But the long term growth is very low.

However, Mutual Fund growth is not linear. Your growth will look something like the graph below-

Mutual Fund Growth

Your investments will increase in value on some days and decrease on some days. This is perfectly normal and nothing to worry about.

Things to keep in mind when investing into Mutual Funds:

  • Think Long Term-┬áMutual Funds give best profit when you invest for 3+ years
  • Market Fall is┬áNOT Bad- Do not panic if the value of your investment falls. This just means that you have an opportunity to buy more units at cheap price
  • Be Patient- Mutual Fund investment is like planting a tree. If you give it time to grow it will give you profit beyond expectations. (There are funds which have grown more than 100 times in just 20 years)
  • Buy More Units- The more units you have, the more profit you will get. Do additional purchase in your existing funds whenever you have extra cash.