Jul 11, 2016 3 min read

Fads do not last long in mutual fund

There is a time slot for everything. Stock market witnesses various ups and downs and there are times which favor a particular sector at a point of time. But, the mutual fund sector does not support this.

If you have to make a decision before starting a business, which all aspects will you consider? The first thing which a business person would contemplate will be the longevity of the business and the demand for the product evenly spread throughout the year. It is true that every business has to face time in the entire year where there is a slowdown or what is called an offseason. However, still there is some momentum even then. But, if a person invests in a product which is seasonal then the chances to get returns throughout the year narrows down. For example, if a person opens up an outlet selling winter outfits, then it a seasonal business. He will earn only in the winter months and the rest of the year will be his offseason. So, entrepreneurs produce or sell according to the season. It means during winter they sell a majority of woolens, while in summer they sell cotton dresses. Thus, it maintains the rate of return for the business person.

Similarly, in mutual funds the clients have to look at the long-term perspective for investing and should not get carried away by the short-lived investment emotions. Only a long-term investment objective will give you progress. As it is said beauty lies in simplicity. It means that fashions and trends vanish as soon as they evolve. But, the simplicity never loses its worth may it be nay era. So, instead of getting attracted towards the glittery world of investment, the clients should keep it straight and easy-peasy.

Three must include points in investing strategy

The clients who want to achieve the pinnacle of returns through very simple practices must include the below-mentioned investing points.


“ Simplicity is the key to brilliance”, is a quote by Bruce Lee. A famous martial artist, actor, filmmaker, etc. We all have seen his pictures and known him to be a famous personality. But, one thing many of us don’t know that he has been a very simple person in real life. Bruce Lee had a passion for martial arts from the early stages of his life, so he started learning this form at the age of 16 years. Even after being at the peak if his career he never showed disrespect for anybody. In the same way, the mutual fund clients should also invest in simple schemes which would produce a long-term investment schedule for the clients. There are some companies and co-operative societies which may promise the customers to provide a double return for a short spell, but they generally turn out to be fake. Thus, the clients should not fancy returns and concentrate on techniques followed by the scheme.


“Have patience; Everything is difficult before it is easy.” This phrase defines the importance of perseverance in each and every aspect of life. The basic rule of mutual fund illustrates the principle of patiently waiting to obtain the desired returns from the investing schedule. Thus, the clients have to be calm enough for a longer time spell if they really want good returns from their mutual fund investments. As it requires time for a sapling to take the shape of a tree and bear fruits in the same way mutual fund schemes require a prolonged period in order to sustain growth and provide the much-needed returns to the clients.


“Consistency is the quality of straight mind.” A student appearing for the board exam will have to be consistent in his studies and make the best use of the time he is getting to prepare for giving his best performance over the period of time. But, if he studies at the last moment, then he might manage to pass; however, best results are not guaranteed. In the same way, the clients need to invest in mutual funds through SIP over a stipulated time slot which will allow them to gain maximum from the invested amount. Consistency is the key to success and if followed in investing the clients will be able to get maximum returns from their invested amount. Thus, Systematic Investment Plan will allow the clients to have a consistent investing schedule which will help the customers to accumulate money and reduce the burden of one-time investment.

Thus, by following the three basic steps of investing the clients are able to maintain a strong investing schedule along with earning a copious return for their hard-earned money and you should not get attracted towards the fancy methods of earning money.