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Planning for the future is something that everyone must do. There are many reasons why you should plan for the future. It could be the future of your children, to pay for their education. It could be your retirement. You can also simply be planning for the future, which may be to buy a dream house or a car.
There are a lot of means by which to make your money grow for you. Most Indians invest in gold. It is an age old tradition because the value of gold is always appreciating. A lot of people also invest in bank fixed deposits. They are a very good way to lock in a particular amount of money for a particular time period.
Postal savings are another way to put aside a small sum of money each month. Mutual funds are also an excellent way to plan your future. However, many people avoid mutual funds or invest in the stock market. This is mainly due to the obvious risks involved in such investments.
But as the saying goes "there's no such thing as a free lunch!" you cannot expect good returns without taking some risks. Mutual funds pool together the resources of a number of people to create a corpus.. The money that is collected is then invested in the stock markets by financial experts. These specialists are called fund managers.
Investing in mutual funds is not as difficult as many would imagine it. All that is required is to have a demat account with a bank and you can connect to many portals online. These portals provide all information necessary for investors wishing to invest in mutual funds.
There are many different funds available for investment. They are generally classified as equity funds, bond funds and money market funds. All mutual fund plans are variants of these three asset classes. Equity funds that invest in growing companies are called growth funds, while investing in companies in a certain sector are called sector funds or special funds.
Equity funds are funds that invest in shares of a company. This is why they have the most risk involved. But in the long term these funds provide good returns. Fixed-income funds are suitable for investors who want to lock their money and also enjoy the tax benefits they offer.
The most important thing to remember when you invest in mutual funds is diversification. Investors should invest in a basket of securities right from high-risk to the most stable. This helps to keep the investment portfolio balanced, even during market fluctuations.
There are a lot of means by which to make your money grow for you. Most Indians invest in gold. It is an age old tradition because the value of gold is always appreciating. A lot of people also invest in bank fixed deposits. They are a very good way to lock in a particular amount of money for a particular time period.
Postal savings are another way to put aside a small sum of money each month. Mutual funds are also an excellent way to plan your future. However, many people avoid mutual funds or invest in the stock market. This is mainly due to the obvious risks involved in such investments.
But as the saying goes "there's no such thing as a free lunch!" you cannot expect good returns without taking some risks. Mutual funds pool together the resources of a number of people to create a corpus.. The money that is collected is then invested in the stock markets by financial experts. These specialists are called fund managers.
Investing in mutual funds is not as difficult as many would imagine it. All that is required is to have a demat account with a bank and you can connect to many portals online. These portals provide all information necessary for investors wishing to invest in mutual funds.
There are many different funds available for investment. They are generally classified as equity funds, bond funds and money market funds. All mutual fund plans are variants of these three asset classes. Equity funds that invest in growing companies are called growth funds, while investing in companies in a certain sector are called sector funds or special funds.
Equity funds are funds that invest in shares of a company. This is why they have the most risk involved. But in the long term these funds provide good returns. Fixed-income funds are suitable for investors who want to lock their money and also enjoy the tax benefits they offer.
The most important thing to remember when you invest in mutual funds is diversification. Investors should invest in a basket of securities right from high-risk to the most stable. This helps to keep the investment portfolio balanced, even during market fluctuations.
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