We all know that equity market is the new investment avenue and its adoption is increasing with every passing day.

We all know that equity market is the new investment avenue and its adoption is increasing with every passing day. Along with this there are innumerable mentions of “MUTUAL FUND” and it has caught everyone’s fancy. The ironic part is that not many people understand what it means and that is the first step towards understanding “how to invest in mutual fund”. Now before we understand how to invest in mutual funds, let me give you a brief on what mutual funds actually are. In simple terms, mutual Fund is essentially a professionally managed collective fund that pools in money from multiple investors, and then uses that money to invest in a variety of securities, with the ultimate goal of creating wealth for the investors who are attached with the mutual fund.

In some aspect, mutual fund is seen as a gateway to investing in the equity markets. Now, It is myth that investing in Mutual Funds is spending huge sum of money to make any noticeable profits. Investing mutual funds can be done in two ways :by investing a lump-sum at one go, or through Systematic-Investment-Plans, or SIPs. The difference between the two, as the name suggest is, in lump sum route you invest a considerable sum of money in the mutual fund scheme of your choice. A SIP, however, is ideal for investors who wish to invest periodically from their monthly incomes. Here, you invest a certain amount every month for a specific period.

So in case you do not have large sum of money to invest, you can always go for SIP. The benefit of SIP is Firstly, it builds investment discipline by enabling you to stay invested for a particular period. Secondly, it allows you to invest in small amounts, thus removing the burden of putting a large number at stake. Further, by investing every month, you can invest at different Net Asset Values (NAVs). Mutual funds are an excellent way of securing your financial future if used wisely. Whether you go the SIP way or take the lump-sum route, MF investments help you ensure monetary security for you and your family. It is an auto pilot method of rebalancing your portfolio by leaving the onus on the fund manager. If one has financial goals in place, one needs to find the right mutual fund and consistently invest in it. Although mutual funds are subject to market risks, the right allocation in debt or equity and the right time horizon will help an investor to sail through. Thank you for watching the videos