Hello and Namaste Everyone,
These days I see a lot of people talking about mutual funds and saying that it is one of the popular and best ways to invest in equity. Equity is a stock market but investing in the market directly is not easy. I mean to say that traders can do it because they are well aware of the market and have technical knowledge, which helps them figure out the best way to follow. Investing in the stock market is risky and without proper strategy and study, we can also lose money.
Mutual funds are one of the methods through which anyone can invest money in the stock market and the good thing is that we need not know more about the market. Even if you have a limited understanding of the market then also it works because, for every mutual fund, there is a set management company. The company has a team of professionals who work behind the scenes and they are the ones investing in different segments according to the type of mutual fund. However, there is no surety about the returns because sometimes investors can also lose money. After all, it is completely dependent upon the market. When I say equity then whatever you invest is getting invested on the stock market and we all know that in the stock market, there is no guarantee of the returns. But in most cases, returns are not negative and sometimes if the fund performs well then returns can be 15% or more which is considered a good return.
These days I am exploring more about mutual funds and trying to understand how they work. I'm also exploring more about the sip which is known as a systematic investment plan. I understand how DCA works in the crypto market because it is the same methodology which is called SIP. SIP can be done on mutual funds and a lot of people recommend following the SIP strategy instead of going for a lump sum when it is about investing in a mutual fund.
I am new to this and I have very limited knowledge about the sip and mutual fund market. But I believe that I'll be able to gain more information about it because I'm spending some time learning and understanding more. I am the type of of person who spends a lot of time on something that I want to learn and now the mutual fund is the stuff where I am spending more time every day to learn more about it. There are so many asset management companies in India and they have a lot of mutual funds available for the general public. Now investing in these mutual funds is an online process that can be done by multiple applications and the process is also easy. The money can be added through a bank account but there must be an internet banking service enabled on the bank account.
I believe that learning is always good and we should do it as often as possible. Learning about financial management is fun and I try to do it from time to time. I have done it for Crypto and even I'm not done with crypto because there is a lot for me to learn but side by side I'm also exploring other segments. For example these days it is mutual fund and the sip mechanism and how it works but I know that there is also a lot for me to learn and explore which I will be doing and I am also going to try my best to share some information through my posts.
Thank you so much
Stay Safe