As a risk averse investor , deciding to invest in mutual funds always remains a big challenge.
But with rate of FDs falling by the day , ever reducing interest rates offered by banks on money stuck up in savings accounts , starting to invest in mutual funds in bits and pieces is the way to go to receive higher interests on hard earned money.
For individuals who are skeptical about investing in the equity market , there are instruments namely debt mutual funds that invest in relatively secure debt instruments. These instruments even though are not fully secure are worth starting off with for a risk averse investor to get a feel of investing in mutual funds.
Long term debt funds , short term debt funds , ultra short mutual funds , liquid funds are relatively secure followed by gilt funds and these mainly investment in debt instruments as opposed to equity funds.
There are number of financial sites who provide mobile apps as well , that can help create a portfolio of mutual funds a risk averse investor plans to invest in and helps the investor study the trend before zeroing in on the final portfolio. The same can be done for high performing equity funds as well. CRISIL ratings for mutual funds in all categories are also available as a ready reckoner before deciding to invest.
Demat accounts as well as bank specific securities accounts can be opened to start trading in MF’s either using SIP(Systematic Investment Plan like EMI) or paying money in lump sum. Investors can invest online using the websites of respective MF AMC by fulfilling requirements of e-kyc. These can help in purchase of direct mutual funds which are advantageous in terms of not having to pay commission or brokerage.
Happy investing..
Fearless investing..
Leave a Reply