Jul 14, 2016 3 min read

Lemonade’s mutual fund investing lessons

Mutual Fund serve as a boon for the investors in the financial ups and downs similar to a lemonade acting as a refreshment on a hot summer day

The topic may sound weird that how one can get the investing lessons from a lemonade. But, as a lemonade is a mixture of various things, in the same way, mutual funds are also a mixture of various factors which make it a perfect solution for parking the client’s money. Now let us have a refreshing insight of mutual funds which would not only refurbish your investing principles, but will also ease your worries.

A perfect balance is all that counts
From children to elderly people, everyone loves to have lemonade no matter what the time or season is. We all know a lemonade is a perfect blend of different tastes (sweet, sour, bitter, salty). It is the perfect combination of all these ingredients which makes the drink worth savoring. The absence of any single ingredient or imbalance in their ratio spoils the taste of the drink and makes it worthless. Similarly, in mutual funds diversification is the most important factor while investing. Portfolio of the customers must be a perfect blend of various mutual fund schemes which will enable them to make the best possible use of their money as well. The clients have to make sure that their money not invested in identical schemes. Also, the methodologies must not be the same. For example, one or two mutual fund schemes can have SIP as their investment method while the other few can follow the path of lump sum. Hence, a perfect mixture of schemes would make it worth investing your money in it.

Detoxification is the essence of perfect health
Lemonade is not only refreshing but also takes care of the health. Lime is the main ingredient which is a natural detox. Thus, it helps the body to remove the impurities. It is necessary to remove all the pollutants out of the body. In the same way mutual fund investments will remove all the unwanted schemes and make you put money in right places. The clients can have their investments grow on a regular basis and make the best possible use of their money through the various schemes provided by mutual funds. A regular review of the schemes is also necessary as it enables the clients to review the performance of various schemes. Thus, mutual fund plays the role of filtering the investment mechanisms for parking the surplus money. So, one can say mutual fund investments are the best option for the financial health of the clients.

Bitter is the new taste
While drinking the lemonade one’s taste glands are tantalized by the bitter taste of the lemon. The lemonade may taste pungent at some times but still we do not discard it. As we know that it has very good medicinal values and is good for us. Likewise, while investing in mutual funds the clients have to bear risk to some extent in order to make the best possible use of their money. One has to sacrifice something and look at the broader returns. Bearing a little risk can be beneficial for the clients as it can take their money to reap higher returns.

Bliss of calmness
You might have been in a situation where you had to travel in the hot summer afternoon and return back to your home entirely exhausted by the heat. And at that point of time if you receive a glass full of chilled lemonade then all your tiredness and heat strokes go away in a single sip. In the same way, when a person invests in mutual funds then it becomes easier for him/her to wave off their financial worries and relax. After thorough research and selecting the accurate schemes, the clients can have a relaxing time. But, in order to put down the financial burden one must not blindly invest in any random scheme.

Twin benefits in a single stroke
Mutual fund schemes are the investment vehicle which allows the clients to take advantage of the bullish as well as bearish market conditions. While investing in mutual funds one need not time the market as is the case in the stock market. Every time is correct for investing in the mutual fund market. Like, on one hand the lemonade acts as a refreshing drink while on the other it helps in curing various diseases. The intake of lemonade is beneficial from the view point of taste and health as well.

Thus, mutual funds can be a boon and serve innumerable causes related to investments. The clients have to be a little cautious about the avenues of investing which would provide the clients with ample corpus. So, invest regularly and say goodbye to your worries.