Mutual Funds

Start early & with whatever you have, Start an SIP today, Equities, while being volatile over short periods of time, tend to be a prudent investment over longer time horizons, If you check on stock prices or the net asset value(NAV) of your equity fund every day, you will certainly get the impression that this is the most volatile asset class on earth, But this is because you are not looking at interest rates, property prices or even gold prices as closely. If you tracked these regularly, you would know that they undergo plenty of volatility, too.

Equities and equity funds appear risky and volatile because they are transparent and marked to market every day, allowing you to know on any day, the performance of your investment, But being over fearful of price volatility, investors often don’t seem to realize that there are many other kinds of risk, too, Bonds or deposits carry a risk of your capital if the issuer’s finances deteriorate and he defaults on repayment, Real estate carries price risk, liquidity risk & legal risks.

Mutual funds offer investors the opportunity to earn an income or build their wealth through  professional management of their investible funds, Mutual funds offer investors the opportunity to earn an income or build their wealth through professional management of their investible funds, Investing in the units of a scheme provide investors the exposure to a range of securities held in the investment portfolio of the scheme in proportion to their holding in the scheme. Thus, even a small investment of Rs. 500 in a mutual fund scheme can give investors proportionate ownership in a diversified investment portfolio, Once an investment is made with a mutual fund, they make it convenient for the investor to make further purchases with very little documentation. This simplifies subsequent investment activity.

There are somewhere around 2000 Mutual Funds in India, to take care of your kid education, daughter marriage & retirement you don’t need all of them, you need discipline & 3-4 funds

Financial Planning Simplified

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