Key Mutual Fund Investment Lessons from 2021

As a year ends, it leaves specific lessons for investors to imbibe for a fruitful future. As you draw curtains on 2021 and step into 2022, you should look back at some of the most important investment lessons from the year. 2021 was a rollercoaster ride. It was the second year of COVID-19, where the economy witnessed significant volatility, alterations of different investment regulations, new tax laws, and more. All of these impact your mutual fund investments and more.

Here are key mutual fund investment lessons from 2021:

  • Stay calm and stay invested: The stock market plummeted after the first outbreak of COVID-19 but regained its spirits after a few months and rewarded investors who remained calm and focused with handsome returns. In 2021, the market experienced an all-time high. Therefore, anticipating a correction any time soon, many investors exited their SIPs or stopped their mutual fund online investments altogether, missing out on high returns. Hence, an important lesson to learn from 2021 is to stay invested in mutual funds online for the long term. Your investments should be aligned with your financial goals and not timed by the market. Do not stop your SIP unless you have a financial emergency.
  • Consider inflation when investing:In 2021, the steeply rising inflation became a grave concern for investors, especially those invested in debt securities, because the debt market remained subdued. Risk-averse investors with safe investments suffered because their returns were significantly lower than the prevailing inflation rate. On the contrary, equity mutual funds online offered attractive returns, offsetting the impact of inflation. Thus, structure your portfolio wisely going forward and adopt a balanced risk approach rather than only opting for safe investments.
  • Review your investment portfolio:Mutual funds online is not a one-time investment. As a wise investor, you should restructure your investment portfolio, especially amidst market volatility. For instance, you created a portfolio with a 60-40 equity to debt ratio. However, the stock market surged, and your portfolio mix altered to an 80-20 equity to debt ratio. This means your risk exposure is higher than your appetite. Therefore, reviewing and restricting your mutual fund online portfolio is an investment lesson to imbibe going forward.
  • Create a diversified portfolio:Different investment products generated varied returns in 2021. Equity mutual funds online were at an all-time high while gold and debt investments witnessed slugged growth. Imagine the returns of a portfolio with only gold and debt securities. Hence, creating a diversified portfolio with a mix of equity, debt and alternative assets is a smart choice for the future.
  • Don’t solely rely on the past performance of an investment product:When making mutual fund online investments, do not solely rely on the past performance. The preceding performance does not warrant future returns. It is critical to assess the particular investment option as per the prevalent market scenario and invest with a long-term vision.


These investment lessons from 2021 can help you make informed and wise investment decisions in 2022 and further. Use the Tata Capital Moneyfy App to study different mutual funds online, compare schemes and make the right investment choice.

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