Top 5 Mistakes to Avoid when Investing in Mutual Fund Plansbr br 1. Forgetting to Analyse your Risk Appetite before Investingbr br - Choose type of Mutual Funds based on Risk Appetitebr - Avoid increasing the Risk factor in the futurebr - Invest in both Equity & Debt-based Funds to create a Balancebr br 2. Not aligning your own Financial Goals with the Mutual Funds’ Goalsbr br - Choose between a Long or Short term Investment, based on your requirementsbr - Note if the Mutual Fund Scheme is Open or Close-endedbr br 3. Creating Over-Diversification or No-Diversificationbr br - Choose One to Two Mutual Funds of same type every year to avoid Over-Diversificationbr - Don’t Invest in just One Fund as it increases the chances of Loss in the Futurebr br 4. Ignoring the Tax implications on Mutual Fund investmentsbr br - Mutual Funds are subject to Short & Long term Capital Gain & Dividend Distribution Taxesbr - Choose the Growth, Dividend payout or Dividend re-investment options based on applicable Taxesbr br 5. Failing to Track your Mutual Fund Investments from time to timebr br - Re-balance your Portfolio if your Risk Appetite, Financial Goals or Time Frame is not being metbr - Replace under-performing Mutual Funds whenever Re-balancing your Portfoliobr br If you have any Queries, leave a comment below.