How to Become a Successful Mutual Fund Investor

Every once in a while, we get to hear about investors who made SIP investments years ago and are now redeeming the mutual funds for astronomical sums. Successful mutual fund investment is not all about finding the right fund scheme; it is a combination of various factors.

closing a mutual fund investmentStay invested for a longer period:

Patience is the key when it comes to investing in mutual funds. The market of mutual funds keeps on fluctuating. So, short-term investments can bring you quick returns, but they carry high risk too. Whereas if you stay invested for a longer time, you will know when the market is low and when it is high. Accordingly, you can invest or sell. Keep investing small amounts regularly via a SIP for a longer period for better benefits.

Be diversified:

Controlling the risk is the catchword while investing in mutual funds. Invest your funds by distributing them in different sectors. This may bring you fewer returns, but you can lessen the risk of loss if any of the sectors are going through low times or if any funds are not performing up to the mark. And in the long run, this will protect your profits.

Research must be done well:

Budding investors tend to do less research about mutual funds and instead rely more on assumptions and the advocacy of others. This sometimes leads to investing in the wrong funds that earn you losses. Therefore, it is highly advisable to do detailed research about every facet of mutual funds before investing. Nowadays, mutual funds online portals give you enough information.

Make a slight increase in investment:

Sometimes, increasing a small amount in your investment can bring a huge difference in your returns. Here is a calculation that shows the difference (the figures and returns are purely used for the example).


Case 1 Case 2
Rs 15,000/month in SIP Rs 16,000/month in SIP
15% p.a. return 15% p.a. return
10 years 10 years
Rs. 38,99,589 Rs. 41,59,562

Thus, try to increase your SIP investment consistently by using a step-up that is available with your mutual fund.

Past returns do not mean good future returns:

Do not make the mistake of investing in the fund entirely depending upon its past return. In the past, taking higher than normal risks might have given a good return, but it is not necessary that the same may happen in the future.


With the Tata Capital Moneyfy App, you can carefully select the mutual funds that are perfect for your risk appetite and investment objectives. Once you start investing, you can monitor the performance of your mutual funds online with the user-friendly platform of the Moneyfy App and adjust them to maximize your profit.