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Business Owner Investing in Mutual Funds

 These pointers can help anyone who runs a business and looking to invest in mutual funds.

1) Use mutual funds for diversification. Most of your investment is in your business itself, as well as in real estate.

2) Invest a minimum of 70-75% of your savings back in your business, and focus on increasing your stock value.

3) Use a part of the remaining 25-30% for investing in equity mutual funds. Use SIPs and tag it to a goal like your child's education.

4) Invest 30-40% of your emergency fund in pure liquid funds.

5) Use the SIP route for monthly investment and systematic transfer plan or STP for lump sum investments.

6) Do not invest in equity mutual funds if you cannot park it for a minimum of seven years.

7) Invest in stocks only when you have the time and expertise to monitor them, and the money to spare, and when you are sure it will not disturb the focus on your business.