Provident Fund or Mutual Fund??

There are so many financial products that it can become overwhelming to try and select the right financial product to invest your money. That makes you consider taking the investment advisor or the financial product salesman advice. But, have you ever wondered, how can an unknown person, who doesn’t understand you or your financial needs suggest right financial product to you?

Would you buy a car just because the Salesman thinks it meets your need??

No, you would not.

Rather you would do your own research to understand what you need from the car, such as

1) Daily distance to be covered in the car?

2) How long is the travel time?

3) How frequently you would be using the car?

4) What kind of parking space do you have?

5) What is your budget?

The same way you shouldn’t simply accept the financial product an Advisor suggests/ sells.

You should do your own research and ask all relevant questions –

1) What is your goal?

2) How far is the goal from today?

3) How much return you want from your funds?

4) How much risk are you willing to take?

5) Where would the money to invest come from?

Answering these questions will give you a fair idea whether the Financial Product is right for you or not!

For more detailed explanation on the same please click here. This post explains how and what questions to ask and also explains various terms related to the money aspects.