Tired of investing in conventional products like fixed deposits, national savings certificates, public provident funds, etc which give limited returns and demand a high lock-in period? Always wanted to earn a much higher return too? Then mutual funds is what you should be looking for, as there is a possibility of getting an exposure to equities as well as debt markets with a lower lock-in period and higher returns too. So what are mutual funds?
A mutual fund is a pool that brings together the investments of people and invests in different asset classes like stocks, bonds, money market instruments in order to generate a higher return for all the investors. These investments are in accordance with what is stated in the offer documents.
What are the advantages of investing in a mutual fund? • Investments in mutual funds gives the investor an opportunity to get an exposure in various stocks across industries even with limited capital • The advantage of a professional fund manager who manages your portfolio is one of the biggest advantages of investing in mutual funds. He is in the best position to take an entry or an exit call based on various parameters and his experience of dealing in the capital markets • As per one's risk appetite, there is a wide choice of schemes available for investment purposes • With a pre-defined investment objective, the investments that are made on behalf of the investors are completely transparent
In order to get started with investments in mutual funds, the best method is to take the Systematic Investment Plan (SIP) route. This is because in this option one can get started with an amount as low as Rs 500! On a fixed date every month, your account gets debited towards the fund you select. This inculcates a disciplined investment approach and there is no need to time the markets too. This method is best when you are planning to invest for a long term financial goal. Be it for your son or daughter's higher education, their wedding expenses, medical costs, etc. It does not even pinch your pocket as you have to invest a very small amount every month and suddenly after a few years you realize that you have a good corpus to meet financial expenses. In order to decide how and where to invest, you can even make use of the mutual fund calculator. It helps you decide the fund and the scheme as per the returns provided over a period of time. This will help you to select winning funds over a plethora of schemes that are currently available in the market.
Mutual funds are subject to market risk; hence, all investments should be made carefully.
A mutual fund is a pool that brings together the investments of people and invests in different asset classes like stocks, bonds, money market instruments in order to generate a higher return for all the investors. These investments are in accordance with what is stated in the offer documents.
What are the advantages of investing in a mutual fund? • Investments in mutual funds gives the investor an opportunity to get an exposure in various stocks across industries even with limited capital • The advantage of a professional fund manager who manages your portfolio is one of the biggest advantages of investing in mutual funds. He is in the best position to take an entry or an exit call based on various parameters and his experience of dealing in the capital markets • As per one's risk appetite, there is a wide choice of schemes available for investment purposes • With a pre-defined investment objective, the investments that are made on behalf of the investors are completely transparent
In order to get started with investments in mutual funds, the best method is to take the Systematic Investment Plan (SIP) route. This is because in this option one can get started with an amount as low as Rs 500! On a fixed date every month, your account gets debited towards the fund you select. This inculcates a disciplined investment approach and there is no need to time the markets too. This method is best when you are planning to invest for a long term financial goal. Be it for your son or daughter's higher education, their wedding expenses, medical costs, etc. It does not even pinch your pocket as you have to invest a very small amount every month and suddenly after a few years you realize that you have a good corpus to meet financial expenses. In order to decide how and where to invest, you can even make use of the mutual fund calculator. It helps you decide the fund and the scheme as per the returns provided over a period of time. This will help you to select winning funds over a plethora of schemes that are currently available in the market.
Mutual funds are subject to market risk; hence, all investments should be made carefully.
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