A mutual fund is an investment instrument, that pools money from the investors and invests in stocks, bonds, securities, and other money market instruments. If you are planning to start an investment or already investing in various tools then adding mutual funds to your investment portfolio is a good option.
Choosing the right mutual fund is an important step in achieving your financial goal.
On Money9 Helpline, Mohit Gang co-founder of Moneyfront helped our viewers understand why mutual funds are a great investment tool.
Here are some queries
Gang: It is very commendable that you are planning to invest in mutual funds right from your first job. You can start by investing in large-cap funds and also choose a Flexi-cap. In large-cap, there are options like ICICI Nifty, HDFC Sensex, etc, and for Flexi cap, you have options like Parag Parekh fund, Aditya Birla Sun Life, UTI, etc. I would suggest start by investing through SIPs. You can add lumpsum also when you receive any bonus or incentives in your pay.
Gang: You should only invest in stocks if you have the knowledge and understanding. If you know how to read a balance sheet, ratios and can devote time to tracking the market dynamics then you should consider it. You should not go by peer suggestions and what’s trending. For you, the best option is to invest in mutual funds. Understand the returns and schemes and try to diversify assets in that.
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