Module 10: Setting the right expectations
Now that you have made it to this module, we assume that you have laid out your financial goals. But before we start thinking about building a mutual fund portfolio, it is essential to set the right expectations from your investments.
If your expectations are not in line with your current investing skills, you’ll be prone to experience disappointment or fear. Some people may believe that the more money they invest, the more returns they can make. They probably believe there is a formula to earn more returns quickly.
But there are no shortcuts as such that exist which can be applied here. Long term investing requires patience, discipline and is not exciting. Your actual investment amount is something you can decide based on your current financial situation, financial goals, risk appetite and investment horizon.
Task:
Use this guide as a starting point for you to have conversations with your friends and family. Think of how you can normalize these discussions with them. If they are already investing in mutual funds, try and understand how they are doing it, how they started, the learnings and experiences they have. In case they have never heard about mutual funds or having money conversations for the first time then you can also share this blog series with them and share your learnings or your experience of reading this blog series.
Key Takeaway:
Your first investment in module 1 was made to just introduce you to the world of mutual funds. Please consider this as a starting point for you to learn further and go deeper into understanding more about it before you start picking other mutual fund schemes or think about building your own portfolio to achieve your financial goals.
To understand more about the scheme you have invested in, please read the scheme related offer documents available on the website of the AMC which gives you in-depth information about the scheme.
Hopefully this gave you an introductory understanding of the world of mutual funds.
We are open to your feedback and suggestions - let us know how we can improve this or cover more topics further. You can write to us at support@zerodhafundhouse.com.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
An Investor education and awareness initiative by Zerodha Mutual Fund.
