Ten tips for building your 10-year mutual fund investment plan [Video]

As individuals seek to secure their financial future and build wealth over the long term, mutual funds stand out as a popular investment avenue offering diversification and potential for growth. Establishing a 10-year mutual fund investment plan requires careful consideration of various factors to align with personal financial goals and risk tolerance.

Here’s a comprehensive guide on how to build such a plan:

Define financial goals

Are you saving for retirement, a down payment on a house, or your children’s education? Understanding your financial aspirations will shape your investment strategy.

Assess your risk tolerance

Evaluate how comfortable you are with market fluctuations and potential losses.

Generally, a longer investment horizon allows for a higher risk tolerance since there’s more time to recover from market downturns.

Speaking to CNBC-TV18, Mohit Gang, CEO at Moneyfront, said conducting a comprehensive risk profiling exercise is essential to assess one’s risk tolerance and financial obligations, including dependents and preservation goals.

“It is …