123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Getting Started With Mutual Fund Investments

By Author: Aashna Batra
Total Articles: 1

Where do Mutual Funds Invest:

Broadly, Mutual Funds investments are made into three types of asset classes:

Stocks: Stocks represent ownership or equity in a company, which are also termed as shares.

Bonds: Investment made in debt from companies, financial institutions or government agencies

Money Market Instruments: These constitute short-term debt instruments such as treasury bills, certificate of deposits and inter-bank call money.


Mutual Fund Investment Guide:

Invest through SIP: Investing through SIP every month is an ideal way of investing in mutual funds. Every small amount invested every month holds the potential of generating a substantial amount over a period of time.

For example : investing in ₹ 5,000 per month through SIP in equity fund with an annualized returns of 12% can yield ₹ 25 lakhs in 15 years.

Invest based on risk appetite: High-risk appetite investors are concentrated towards investing in equity funds and moderate risk appetite investors would like to invest in hybrid funds(Equity+debt combination) and low-risk appetite investors would like to consider investing more in debt related funds. In short, investment made in accordance to an individual's risk style would generate higher returns.

Invest in various categories of funds: Large cap, mid-cap, and small-cap funds perform in a different manner over a particular period in various market scenarios. Hence, investing in different categories of such funds would help investors to gain maximum returns.

Invest in sectors that are likely to outperform: High-risk investors who are considering to take risks would like to invest in high-risk funds such as sector funds. Such investors can undertake sectors that have the probability to outperform in the near future and invest in such funds. For instance, investing in infrastructure funds or banking funds would be an ideal bet for a short-term to medium term of 3 to 5 years.

Invest in funds dependent on one's financial goal: Lack of awareness amongst investors about

Total Views: 85Word Count: 518See All articles From Author

Investing / Finance Articles

1. Ways2capital : Commodity Market Of India
Author: Mahendra Rajput

2. Easy Ways To Minimize Trading Risk
Author: Anthony Gutridge

3. Ways2capital:- Demonetization: Stock Market Cheered!!!
Author: Mahendra Rajput

4. Check Your Car Loan Requiremets Right From The Comfort Of Your Smartphone
Author: Neha Sharma

5. Calculate Your Home Loan In Mere Seconds With The Loan App
Author: Neha Sharma

6. Looking For A Personal Loan? Download The Loan App Now
Author: Neha Sharma

7. Take A Look At How Loan Apps Work To Your Advantage!
Author: Neha Sharma

8. Calculate Your Loan Eligibility Through Your Smartphone!
Author: Neha Sharma

9. Your Smartphone Is The Key To Your Convenient Emi Repayment
Author: Neha Sharma

10. Online Loan Application: Enjoy A Stress Free Loan Application Through Your Smartphone
Author: Neha Sharma

11. Now Easily Track Your Loan Application Status Through Your Smartphone
Author: Neha Sharma

12. Did You Know That Your Smartphone Is The Best Way To Apply For A Loan?
Author: Neha Sharma

13. How Can Your Loan Application Process Be Made Easy?
Author: Neha Sharma

14. Banking Apps: Keeping Your Finances Safe
Author: Neha Sharma

15. Check Out These Features Of The Internet Banking App And How It Can Help You
Author: Neha Sharma

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: