Today we will talk whether you should invest in mutual funds or not. First of all, know what mutual funds are. We will try to understand it in easy language. Let’s assume that HDFC Amc is a mutual fund a management company. Through which we can invest in mutual funds. So handing over management has a lot of schemes. Such as equity mutual funds Or debt funds. Equity funds are those funds in which money is invested in equity shares. And debt funds are funds in which funds are invested in Govt Securities or companies bonds.
So as you know, equity shares are risky investments. That is why entire money in mutual funds is not invested in a single company. Your money is invested in different companies. For example, suppose your money is being invested in at least 20 companies. And you have set this goal that after 10 years I will withdraw all my money. And for 10 years, 2 companies become bankrupt. Even then, it will not make much difference because most of your money will be invested in 18 other companies, which will give you good returns.
“As all big investors say, do not put all your eggs in one bucket.”
So Mutual Funds works like this. Yes it is risky That is why whenever you think about investing in mutual funds, do full research about it only then invest in mutual funds.
Invest in direct share market:
If you have knowledge about share market then you can also invest in direct share market. But as you know, the risk in the share market is high. So you can start with a small amount for this. And slowly you will learn from your mistakes.
If you can take the risk, then the share market is right for you. But if you remain busy and do not have time to keep an eye on your investment, then the mutual fund is right for you. You do not need to manage anything in the mutual fund, you just have to pay money and the mutual fund companies invest it themselves. The company hires a fund manager and team who are professionals. Therefore, some charges are deducted from your mutual funds so that the company borrows its expenses. But you do not need to panic, these charges are very low. Generally, management charges are less than 1 percent.
Now I am going to talk about which is the best investment scheme for those who cannot take any risk at all. For them, I think debt funds or gold mutual funds are right. The risk on these funds is low. Like the risk is on your bank FD. You can also invest in post office schemes. There too, you can get a higher interest rate from the bank. Small Finance banks also pay more interest than banks, so you can save your money there too.
There are many such websites on the internet, where you can get more information about the mutual fund.
1. Economic Times
2. Value Research Online
4. Invest Guru
5. My Investment Ideas
7. Money Excel
9. Free Fincal
10. Wealth Trust
On these websites, you keep getting regular updates about investing. If I am honest, I like Money Control more than these. But it is not that other websites are not right. You can check all websites. And any website where you think that we are getting good information here, you can use it. If you are not fond of reading, then you can also learn about Mutual Funds through videos. There are a lot of channels related to investment on YoutTube that provide you information for free.
If you want to invest directly in mutual funds, then there are some such apps in India through which you can invest easily.
2. Zerodha Coin
4. PayTm money
5. My CAMS
If you invest in Mutual Fund through any of these apps, then you will not be charged.