What if I told you that you could make lakhs by religiously investing Rs. 1000 every month? You’d probably not believe me. At first, I wouldn’t believe me too. But then I read about the magic of compounding and tried it out myself using this calculator.
Now my next questions were, when and where do I start investing.
When? You can start investing at any age, the earlier you start the better.
And where? There are many options like stock markets, real estate, bank deposits, to name a few. Out of these, stock markets give higher returns in the range of 12%-20% a year, but they also come with some amount of risk. So for first-time investors a head-first dive into stock markets might be too much to handle. That’s why we’d suggest investing in the stock markets through Mutual Funds– A safer bet!
A mutual fund is a trust that collects money from like-minded investors and then appoints professionals to invest that money into different investments. All you need is some reading material on mutual funds and an amount as low as Rs. 1000, to start. To make things easier for you we’ve created a Mutual Fund toolkit that has everything from the concepts surrounding Mutual Funds, to the costs associated with them.
#1. Mutual funds speak a language of their own. If words like AMC, hybrid funds, or even SIP’s confuse you, here’s a guide de-jargoning them for you.
#2. Once the basics are covered, go through this step by step guide to start investing.
#3. Mutual Funds come in all shapes and sizes. Depending on your needs you’ve got to select the right ones.