Once you have decided to invest in mutual funds, the next step must be to increase your knowledge in stock market investments. However, unless you’ve gathered enough experience and knowledge around Mutual funds personally, never manage the mutual fund investments all by yourself. There are advisors or experts who will help you do that.

Honestly, it is not just about knowledge or expertise; there must be ample time at your disposal to monitor the funds. So, even if you seek an expert’s help, gain as much knowledge as possible about the whole process which will help you understand the decisions of your advisor.

Here are some tips that can be followed while doing investments.

• Understand the process of mutual fund investments thoroughly. Even if you seek the help of an advisor, understanding the process helps you assess their decisions.
• Realize the fact that mutual funds are not the same. Based on the objective, asset class and category, performance differ. There are varied forms of funds in all categories, and it is essential to know the difference.
• Make your goals clear. Only if you know the goals, you will know your holding period and risk capability.
• Compare the performance of the funds belonging to the same category and asset class. Suppose the one you have chosen is an equity large cap fund. You must differentiate its risk factor and performance with another equity large cap fund, not with a small or mid cap or a debt fund.
• Choose a mutual fund by assessing its performance in specific situations. Though there are ratios available to know the risk inherent in various funds, performance in these situations matter.
• Assess the expense ratio or the cost of investing. Make sure you compare it using the similar category of funds. Higher costs need not dissuade you from choosing a fund. It is just that the returns should also be higher.
• Diversify the funds in varied asset categories. Try to be clear on the objectives and invest in debts or equity accordingly. Choose not more than 5 portfolios while investing a small sum.

Follow these tips and prepare yourself before venturing out into the world of stock market investing.

2015: I had a goal to run a marathon. I’ve had this dream many times before. In fact, I had to run a 10 K run in 2010 with a lot of struggle.

But in 2016, I was very serious like any husband / professional who goes through a mild depression. I was focused and started planning my routine and daily run.

Plan was simple: wake up at 5 am, exercise and run for 1 hour. (Waking up this early, a hard task ! Never had a fitness goal in my whole life. Old habits die hard). But I persisted.

Soon, I partnered with a fitness freak.

We both registered for the 10k run which was a month away and I’d decided to walk 10k step every day.

I’d installed a fitness app to monitor my daily activity.

By the end of one month, while nearing the running date, I was comfortable running 7 to 8 kms on a daily basis. On the day of the run, we were to run 10k continuously- which we did. I’d completed this 10k rather comfortably.

I was happy and continued registering for other runs and extended my target to 16 KMs and 21 kms runs in a one or two-months gap period. And the whole affair, which started off as a task, became a cinch.

I had only one mantra: run a daily 10K-steps. Evening or Morning. And more importantly, keep on registering for new runs.

Then slowly, I started getting a hang of this discipline of ‘the daily run’.

I started rising at 5 am and running for 2 to 5 km daily. This helped me run half marathons easily. I’d started running to Juhu beach from my place in Kurla, Mumbai on weekends, which is a good 11 + kms.

I’ve improved my fitness level and the story took a nice direction.

This experience is the best to explain the Wealth Creation process.

The first action in the wealth creation journey is to set a goal and commit to it.

Show up, no matter what!