Today I am going to write about Mutual Funds. We all have might seen advertisement on T.V. stating ” Mutual Funds Sahi Hai ” ,
but the question arises are they really good ? .
We all are frightened about loss occurrence in Mutual Funds. Why So ? Because most of us don’t even know what mutual funds are ? and how mutual Funds works ?
but the question arises are they really good ? .
We all are frightened about loss occurrence in Mutual Funds. Why So ? Because most of us don’t even know what mutual funds are ? and how mutual Funds works ?
Mutual Funds have been scandalized for decade , that’s the only reason people afraid investing in it.
Let me tell you there is lot of difference between Share Market and Mutual Funds.
There are lot of Schemes out there to invest in , but if you choose the worst scheme in any scenario you will be able to get return of more than Fixed Deposit , which is quite good.
If you are able to save lets say Rs. 100 per day which means Rs. 3000 per month you are end up getting Rs. 8.4 Lakhs in next 10 years and If you have more patience then after 5 more years you will get Rs. 20.3 Lakhs
If you don’t trust me you can click here, here is the Mutual Funds Calculator :
SIP CALCULATOR
Mutual funds are simple and convenient as compared with share market . Mutual Funds are being provided free of cost nowadays and there is no annual maintenance charges like Demat account.
SIP CALCULATOR
Iam going to solve following mentioned questions in this article.
What are Mutual Funds ?
How Mutual Funds work ?
How to invest in Mutual Funds ?
Best mutual funds for sip ?
Top performing mutual funds in india
Best mutual funds to invest in for long term
What are the Mutual Funds ?
Investment may be done by :
- Yourself : Here, you have to take care of all the information and procedures. You have to seek knowledge and information where to invest and obviously it takes time.
- Expert : Here you may hire an expert which suggest you which share to buy and he will charge fees. In this you will be fully dependent on experts.
- Mutual Funds: Here, you just select Scheme which suits you and you start invest in that scheme. That particular scheme is organised by Fund Manager who take cares of your funds.
Lets take an example , if you have Rs. 3000 and you want to invest then you realized one share of Eicher Ltd. price at Rs. 30,000.
What would you do ?
Would you probably save money upto Rs. 30,000 and then invest. This cause Mutual funds come into picture.
Mutual Funds simply a Fund Management Company base Funds in which you have to invest according to you risk and profile and Fund Scheme.
Investment options in Mutual funds are “
- Share
- Gold
- Debentures
- Real Estate
but the most concern option is shares specially Equity Share.
How Mutual Funds Work ?
First of all you need to know few terms , such as :
- Fund Management Company: This is company who issued various Mutual Funds Scheme for various types of investors. Fund Management Companies commonly known as AMC.
- Fund Manager : Fund Manager is the qualified professional who manages the Mutual Fund Schemes which have been issued by AMC.
Lets take the same example , if you have Rs. 3000 and you want to invest then you realized one share of Eicher Ltd. price at Rs. 30,000.
Then you just give your Rs. 3000 to Fund Manager of the Mutual Funds Scheme and like you hundreds of people invested Rs. 3000 in that same Scheme. This accumulated Rs. 3,00,000 in the Scheme , now Fund Manager can easily invest in Eicher Ltd. and bought 10 shares of the company.
But the question arise is how to distribute to distribute those 10 shares among 100 investors, here Mutual Funds Units are being allotted to the investors.
How to invest in Mutual Funds ?
To invest in Mutual Funds , Follow the Steps :
- Choose a Mutual Funds platform like Groww , Paytm Money , etc.
- Sign up with these apps and done with your KYC.
- Mutual Funds Scheme Selection among various scheme according to your goals , risk profile , expected returns, time durations, and requirement .
- Place your investment like Systematic Investment Plan ( SIP ) which will invest money monthly through your bank as per your mandate of Auto Pay or Lumpsum which means investment at a time.
- Redeem the amount invested whenever required or goals achieved.
What are the benefits of Mutual Funds
Less Money
You don’t need much funds to invest unlike share market. You can start you SIP with just Rs.500 per month or Rs. 1000 as lump sum as well.
Expert
Your money is being managed by Fund Manager which is expert in this field and quite professional.
He has the qualification in managing huge funds with great returns.
Simple and Convenient
Mutual funds are simple and convenient as compared with share market . Mutual Funds are being provided free of cost nowadays and there is no annual maintenance charges like Demat account. The fees being charges by Fund Managers are merely 1 – 2 percentage.
SIP
You don’t need huge funds to invest in Mutual Funds. You can start investment with Rs. 500 and this amount will be deducted from your bank account automatically as per your mandate issued.
Goal Setter
Mutual Funds allow investor to invest there money as per there goals like :
- Long term ivestments
- Short term investments
- Marriage
- Home Loan
- Children’s Education
Finance Chartered 