Investors typically take advice from friends, relatives or brokers to buy stocks or mutual fund plans—often, out of sheer laziness. Even informed investors commit this mistake. But those who do their homework and conduct due diligence before putting in their money could stand to gain significantly.
In the case of companies, it is their balance sheet which contains the relevant details. But, for mutual fund investors, it is the fact sheet of the fund. This is a booklet containing vital information about each of the schemes of that particular mutual fund. "One should read it not only before investing, but also after investing. People should ask for fact sheets from their advisors and respective fund houses on a regular basis. It updates the investor on the fund's performance and any changes that take place. For instance, any change in the scheme's expense ratio is something the investor would want to know about," says Murthy Nagarajan, head of fixed income, Tata Mutual Fund.
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In the case of companies, it is their balance sheet which contains the relevant details. But, for mutual fund investors, it is the fact sheet of the fund. This is a booklet containing vital information about each of the schemes of that particular mutual fund. "One should read it not only before investing, but also after investing. People should ask for fact sheets from their advisors and respective fund houses on a regular basis. It updates the investor on the fund's performance and any changes that take place. For instance, any change in the scheme's expense ratio is something the investor would want to know about," says Murthy Nagarajan, head of fixed income, Tata Mutual Fund.
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