New Delhi, Sept. 5 -- This Teachers' Day, while you may be reminiscing of your favourite teacher with a lot of fondness, it could also be right time to think of some right money advice which financial mentors tend to give to new investors.

Here we list out three key mutual fund principles which most mentors would typically tell their mentees.

I. Align your investment with your asset allocation: Rather than chasing returns, investors are supposed to align their investment to their financial goals. For instance, if they want to save for their retirement or to buy a house, they should put a value to it and by using the present value (PV) formula, they can evaluate how much they will need to invest today to meet their financial goal.

While...