Investing in Mutual Funds!

What are Mutual Funds?

Mutual funds are one of the most convenient way to invest! Mutual funds allow you to invest your money like an expert without being an expert!

Basically, mutual funds are a way for you to outsource the whole “investing” headache to people who are experts at investing. Simply put, you give the money you want to invest to people who are experts at investing. They will invest your money and make it grow & for this service they charge you a small fee!

Why invest in mutual funds?

Good investing generally requires a good knowledge about the market, economics, world politics and a lot of experience etc. Most people who want to invest their money, do not have the time to follow and learn all these things. For them “Mutual Funds” are the best option. You do not have to worry about anything when investing in Mutual Funds. You just have take out the money for investing. The Mutual Fund managers are people who will do all the work for you and make your money grow!

The actual process of investing in mutual funds is also quite easy. You do not have to do anything except for write a cheque and give it to the mutual fund company. You do not have the hassles of using a “broker” or a “demat” account or anything.

Besides this, there are certain mutual funds that will “really” help you in your financial planning. There are certain mutual funds that are designed to help you invest and accumulate money for your “big buys”! All in all, we highly recommend that you use mutual funds for investing, as you are probably a new investor.

Mutual funds have some risk associated with them. But the risk is not very high. It is generally considered to be a moderately safe investment. However, mutual funds can produce pretty good returns!

One of the best things about mutual funds is that they are “liquid”! What is liquid? To understand what “liquid” means, let us try to understand what non-liquid investments are.

There are some investments that take some time period to “mature”. This means that once you invest the money in the investment, you cannot withdraw it until the time period is up. Once the time period is up, then only will you be able to withdraw the money you invested and the returns produced. These investments are non-liquid. If on the other hand, you can withdraw the money invested and the returns at any point of time, then the investment is considered to be a liquid investment.

Generally, it is good to try and put your money in liquid investments. This is because in case there is a sudden need for money like an operation, an accident etc. you should not have to borrow money. You should have the money available.

Mutual funds are very liquid investments. The process of re-claiming your money in most mutual funds will take a maximum time of 2-3 days.       

How to invest in mutual funds?

There are many different kinds of mutual funds. Instead of trying to figure out what is good for you what is bad for you etc, you should get yourself a good mutual fund agent! You just call one of these agents up and tell them you invest in mutual funds. They will help you out with everything that you need to know. You just have to tell them what kind of “financial aims” you have and they will come up with a whole plan for you to reach your “financial aims”!

In case you do not know any “mutual fund agents”, check out this site: Karvy

You can ask for a mutual fund agent from Karvy though this form.

Next - Assured return investments.. >>

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Table Of Contents

  1. How to manage your money? - Intro
  2. Why should you invest your money?
  3.       >> For making "big buys"!
  4.       >> For tax saving!
  5.       >> Inflation
  6.       >> "The power of compounding!"
  7. How to invest?
  8. Investing in Mutual Funds!
  9. Assured return investments...
  10.       >> Fixed Deposits (FD's)
  11.       >> Public Provident Fund (PPF)
  12.       >> Employees Provident Fund (EPF)
  13.       >> National Savings Certificate (NSC)
  14.       >> Kisan Vikas Patra
  15.       >> Post-office - Monthly Income Scheme 
  16.       >> Post-office - Time Deposits
  17. Insurance