Invest in Mutual Funds
Mutual Funds are a smart way to grow your money. They can help you achieve your financial goals as they have the potential to generate higher-than-inflation returns.
What are Mutual Funds?
It is an investment vehicle where multiple investors come together and pool their funds. This pooled money is then invested by the fund manager across various asset classes including equity, debt, gold, and other securities to generate returns. The gains and losses incurred from such investments are divided among investors in the proportion of the share of investment.
To learn more about them, read our detailed guide on
Advantages of Mutual Funds
Professionally Managed
One of the key benefits of investing in these funds is that your money is managed by professional money managers who have years of investing
experience.
Liquidity
It is the ease of buying and selling an investment. Mutual Funds offer superior liquidity compared to some of the other instruments as you can buy
and sell them anytime you want.
Affordability
You can start your investments in these funds with as low as ₹ 500. Therefore, you don’t need large sums to start investing.
Diversification
As mutual funds invest in a basket of stocks, bonds, etc., you can own a diversified portfolio even with a small investment amount, this helps reduce risk as well.
Well Regulated
Mutual fund schemes are regulated by the SEBI. The tight regulations ensure transparent processes and protect the investors’ interests.
SIP Investments
You can invest in consistent small amounts regularly to make sure you don’t have to time the market. SIP helps you buy the MF at all the prices.
Ways to Invest in Mutual Funds
SIP (Systematic Investment Plan)
SIP allows you to invest a fixed sum at regular intervals. SIP is one of the most recommended ways to invest in mutual fund schemes as it is convenient. It also helps you average out the cost at which you buy the units of these funds. Read more about, What is Systematic Investment Plans (SIP)?
Lumpsum
When you make a one-time investment, it is called lumpsum. Lumpsum investments are generally done when people have got a big sum of money like bonuses or payments from a sale of an asset.
Bring advantage of your personality to investing
Success in your story happens when you know what you are doing and why. Bring an edge to your investing by taking decisions that match with your investor personality.
