Starting your mutual fund investment journey might seem daunting, but it doesn’t have to be. Over the next 10 modules, this guide will provide you with a step-by-step introduction to mutual funds, helping you go from someone unsure about how to invest to a beginner who understands the basics
Topic: Starting Small In simple terms, a mutual fund means a pool of investments, managed by a professional fund manager. To get started: Choose any Investment Platform: There are many mutual fund investing platforms, including any Asset Management Company (AMC) apps/websites. Pick any of the them that you prefer
Topic: Understanding Your Investment Once your investment is successful, you will receive an email from the AMC confirming your investment. This email will likely contain the following details: Full Name of the scheme you have invested in: Every mutual fund scheme has to follow a particular naming convention. This naming
Topic: Categorization of mutual fund schemes These are the different categories of schemes available: 1. Equity Schemes: These schemes primarily invest majority in stocks (equities and equity related instruments) which are listed companies on the exchange. These schemes may be suitable if you have a higher risk appetite and longer
Total Expense Ratio (TER): To manage your investments in a mutual fund scheme, the AMC charges something called an expense ratio, expressed as a percentage. As a Mutual fund investor, it is important to be aware that mutual fund investments are not free, and you have to pay for it.
Topic: Investing through SIPs and Lumpsum Lumpsum: A lump sum investment is a one time investment that is made in one go in a mutual fund scheme. For instance, investing a sum of ₹ 1,20,000/- in a mutual fund, in one go can be considered as a lump
Topic: Direct vs Regular Plan You can choose to invest in Mutual Fund schemes in two ways – 1. Directly from the AMC → Direct Plan 2. Via a distributor → Regular Plan When you buy from the AMC/fund house directly, there is no distributor, hence no distributor commission, and therefore lesser
Topic: Understanding Investment Performance Post your investment, how do you now calculate the returns on your investments Investment Type Duration Type of Return Lumpsum >1 year CAGR Lumpsum <=1 year Absolute Return SIP <1 year Absolute Return SIP >1 year XIRR CAGR → The compounded annual growth
Now that you have an introductory understanding of the basics of a mutual fund, it is important to understand a few things. These things may not be exciting to talk about but we still have to do it because they are essential. 1) Emergencies: Think of any unexpected events in
Topic: Creating Financial Goals All of us will have certain aspirations in our life/career. To fulfill those aspirations we would need a certain amount of money/corpus which is why we earn, save and invest. Hence, the goal of investing in mutual funds or any instrument is to achieve
Now that you have made it to this module, we assume that you have laid out your financial goals. But before we start thinking about building a mutual fund portfolio, it is essential to set the right expectations from your investments. If your expectations are not in line with your
Over the past year, Index funds have emerged as the fastest-growing fund in terms of Assets Under Management (AUM) flowing in through Systematic Investment Plan (SIP) route , achieving a growth close to 85% from Nov 23 - Nov 24 with the live SIP accounts increasing by about 80% over the
Gold has long been considered an investment that one should keep in their portfolio. But holding physical gold comes with challenges like storage and security. That's where gold funds step in, offering a modern way to invest in gold. But what happens behind the scenes when you invest
Asset allocation is a key principle in investing, and gold has been considered as a crucial asset class for diversification for a long time. Gold has historically exhibited a low correlation to stocks, meaning it can provide a hedge against market volatility. But a question that often arises is, how
The number of new investor folios coming from smaller cities has been rising on a monthly basis. As per AMFI Mutual Fund Industry data, the mutual fund industry has added 2.3 Cr investor folios from Apr till Aug 2024 out of which more than 50% of them come from
Systematic Investment Plan (SIP) is a convenient and a great way to get started with investing in mutual funds. Setting up an SIP offers an opportunity for investors to adopt a disciplined approach to investing. Steady rise in SIP Accounts and Monthly SIP Contributions: There is a healthy trend of
The total number of retail Index Fund folios has grown by around 12X in less than 4 years. Investors may be choosing Index Funds for their numerous benefits such as Broad Market Exposure, Diversification, and potential for long term growth. Please find the detailed breakdown below👇 Growth in the total
What are Liquid Funds? Liquid Funds are funds whose investment is into debt and money market securities with a maturity of up to 91 days only. Where will your money be invested through liquid funds? Liquid Funds primarily invest in highly liquid money market instruments and short-term debt securities, ensuring
Gold represents a versatile investment proposition due to its dual nature as both a consumer good and an investment asset. This dual role allows it to provide effective diversification during times of financial turmoil while also benefiting from growth in jewellery and technology demand during periods of economic growth. Brief
There are many different investment avenues available to investors. Mutual funds are one of them that may offer good investment opportunities. These are a type of financial instrument made up of a pool of money collected from many investors. They then invest in securities such as shares, bonds, money market
Over the past few years, Exchange Traded Funds (ETFs) seem to have been adopted by many Indian investors since they provide exposure to broad segments and sub-segments of Indian markets. ETFs are the funds that trade on exchanges, generally tracking a specific index. ETFs provide investors with exposure to broad
