Having accumulated a certain amount of money, each of us starts looking for profitable financial instruments. Conservatives prefer deposits, but sooner or later even they begin to wonder if there is an alternative way to save and grow.
For a novice investor, this is a difficult question, but there are interesting and quite easy-to-understand investment options on the market.
To work with mutual funds, you do not need to be a financial expert, have significant start-up capital or constantly monitor stock quotes.
Firstly, because experts call mutual investment funds the best alternative to bank deposits. In fact, these are completely different financial instruments, but they have one thing in common: they do not require almost any active actions and special knowledge from the depositor.
- Managed by a professional financial manager
- Wide range of active and passive funds
- No trading fees for automatic contributions or dividend reinvestment
- Large and growing selection of passive index mutual funds
WHAT TO DO AS A NEWCOMER?
One of the main issues when choosing a mutual fund is the choice of a management company, which is similar to choosing a bank for a deposit.
You should not trust companies that have been on the market for less than a year, have not proven themselves in any way or have shown a “minus” in all their products. And, of course, it’s better to give preference to Top Performing Mutual Funds.
But even after you have chosen who exactly to entrust the money to, many questions remain. What funds should you invest in? How will income be accrued – immediately or in a year? How and where can you see if a mutual fund makes money or vice versa?
Is it possible to observe the work of your own funds every day? Will it be possible to buy additional mutual funds or, conversely, to repay them if the units lose money?
These questions often cause an investor to be wary of choosing a new financing instrument and, in fact, miss out on the benefits that savings could bring. After all, almost any person is afraid to do something new: in theory, one thing, in practice, quite another.
But there is a way that can close the gap between theory and practice. After all, even pilots do not immediately sit at the helm of the aircraft – first they gain practice on simulators that simulate a real flight. It turns out that this is also possible with mutual funds.
Even the most advanced investors do not always manage to make money. But if we managed to overtake inflation, this is already a good result, part of the correct strategy.
You can move intuitively, or you can read the advice of venerable investors and analysts – and repeat all the steps after them. Along with this, the services provided by the experts of RKFS are here for you helping you in investing in Mutual Funds in India.