Mutual Fund: An easy way of saving
Saving is very important from the viewpoint of future requirements. For a common man with saving the right choice of investment option also holds equal significance and that is why there are many options availed by various companies in the market. Looking at various avenues, one can see what can be the most feasible one and invest his amount in the concerned option. The mutual fund is one of the known options in this era where the investor can start investing with a small amount also. Primarily there are two options available in the market, which are known as an investment with a lump sum amount and systematic investment plan.
The options:
In the lump sum
investment, the whole amount is invested in one go, and one can have benefit as
per the concerned price of the unit at the time of the investment. If the unit
price is high at the moment of investment one may get fewer units allotted
while in case of the low price of the unit one may have a higher amount of
units allocated. The investor can sell the units and get the amount back to his
account as per his requirement if the fund is open-ended one, in case of a
close-ended fund one has to wait for the concerned time period.
The option of SIP is considered as a better one if one wants
to go for a long term investment and look at the good return. One can also go
through mutual fund blog which can help one understand how
the investment in SIP can grow and benefit an individual. The best part of the
SIP is one can have the investment in instalment and hence does not need to
take the burden of the same in one month. The units allocated are as per the
current price of the units and hence whether the stock market goes up or down
the investment keeps on fetching good return only. However, here one needs to
note that this is a long term option where three to five years need to be given
to have a good return.
Choose the option
wisely:
As the market has end number of companies that offer various
products in a mutual fund, one needs to check each of them carefully before
investing. The vision of the fund, fund manager, AUM, unit price, past
performance, investment avenue of the fund and the promoter are some of the notable
points that one needs to check before going for any of them. If one knows
nothing about the market and still wants to invest, he can ask an expert or
check the fund performance on the internet which can help him decide
accurately.
To invest the amount in direct mutual fund app one needs to fill a form and pay the amount to the concerned
company. With the application, there are also a few documents such as PAN
number, ID proof and bank proof need to be submitted to have an easy process.
Hence it is not difficult to invest in the mutual fund at all, but the only
point is one needs to plan well before investing.
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