Mutual funds are a flexible investment choice, because of the widespread they offer in terms of asset class, risks, investment amounts, and liquidity. But, for a beginner, it can be challenging to take the first step into building a mutual fund portfolio. You can set up your mutual fund portfolio with some basic guiding principles.
A step-by-step guide to building your mutual fund portfolio:
- Understand Your Risk Tolerance: Your risk tolerance is the level of risk you are willing to take while investing in mutual funds. When you determine the amount of risk you can take for your investments, you can decide on the types of funds that are suitable for you. For instance, if you hold a high-risk tolerance, you can have maximum allocation in equities, while debt funds are
