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• Define your objective, for example your retirement after 25 years or wedding some three years away. Does mutual fund help you meet your objective?
• Do I have to be investing in more than one fund to meet my different needs and are there suitable funds for every need?
• Is there a lock in period and if yes what exactly is the period?
• Is the fund flexible enough to change the composition of my portfolio to suit my differing but broad needs?
• Should I invest in a mutual fund which is loaded? Will I not loose in the ultimate analysis?
• Is the portfolio well represented? Or is it a specialty fund? Are they paying dividends?
• Can I reinvest the dividends to by shares so that I can build up on the principle?
• Is there liquidity even after the initial lock in period?
• Are there exit loads (back end loads) at redemption? What are the fees in proportion to my returns?
• Can I invest in small amounts every month? So that I can average the cost of my investment through ups and downs of the market?
• Is the fund professionally managed and whether managers have specific experience? What is their track record?

How Beneficial Is Investing In Mutual Funds?

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