Focus on Financial Goals
Are you chasing returns? Focus on goals instead Tell anyone that you invested in mutual funds, and the first question they are most likely to ask is how they are performing, i.e. what are the returns. Returns are the first and probably the last thing on many investor’s minds. Chasing Mutual Funds Return But chasing returns is not a healthy option. Investing in a fund because it tops the charts of one-year returns is a wrong way to look at investing in general. It is seen that many investors keep jumping from one fund to another based on one year’s returns. While they may presume that it will help them to build greater wealth, but in reality, it is detrimental to their financial health. Investors forget to take into account the cost and taxation associated with exiting from one fund and investing in another. Also, the ranking of top-performing funds keeps on changing regularly. Chasing Top-Performing Asset Class The scenario is not just limited to mutual fun