#Mutualfundtips #investing

A thoughtfully constructed portfolio of 4-6 well-chosen funds across appropriate asset classes will serve most investors far better than a collection of 10-plus schemes, each purchased during some market enthusiasm or in response to a sales pitch.

Asset allocation, too, serves as a vital shock absorber during the market turbulence. Diversification across assets classes provide protection and

perspective during market storms.

The market, much like the weather, follows cycles beyond our control. What we can control is our response to these inevitable patterns. By following five rules, investors can develop the resilience to withstand market volatility.

Five Rules

1. Maintaining SIP discipline,

2. Properly evaluating fund performance

3. Simplifying portfolios

4. Implementing thoughtful asset allocation

5. Taking the long view