Why should you invest in mutual funds?

By -
http://www.jayantharde.com/
Investing in Mutual Funds is less risky than investing in Stocks. You can start investing in Mutual Funds via Systematic Investment Plan (SIP) with amount starting from just 500 per month. The market is flooded with the thousands of scheme of companies. You can easily check their performance with of help of several websites and applications like Moneycontrol. All the historical and statistical details are mentioned there. You can easily choose any of the top-ranked and top performing schemes like Aditya Birla, Reliance, Tata, HDFC, ICICI, SBI, L&T and thousand others.
Remember large-cap schemes offer stability with lower risk and small-cap schemes offer higher returns but with the risk factor. Ask us or take out some time and analyze yourselves. Also, remember that mutual funds return good returns over a longer period of time like 10–20 years. But you can exit easily as per your wish depending on your schemes.
Now the key point here is that unlike the story of my childhood I told above, where your money is increasing via Compound Interest and if you are unaware with the magic of compounding, go through the example given below.
Example-
1. Suppose A invested 1000₹ per month for a period of 10 years at 12% average growth.
Total amount invested= ₹ 1,20,000
The amount at the end of 10 years= ₹ 2,32,339
2. Suppose B invested 500₹ per month for a period of 20 years at 12% average growth.
Total amount invested= ₹ 1,20,000
The amount at the end of 20 years= ₹ 4,99,573
3. Suppose C invested 1000₹ per month for a period of 20 years at 12% average growth.
Total amount invested= ₹ 2,40,000
The amount at the end of 20 years= ₹ 9,99,147
Impressive isn't it! More the duration and money invested results in more returns.
A fact- Till 2016, the amount of money invested by Indians in Mutual Funds was about ₹ 17 trillion, which is 2017 grew to about ₹ 23 trillion.
So go ahead, save and invest! Fulfill your dream of buying a car or bungalow or may be planning for your child's education.


Comments

Post a Comment

Popular posts from this blog

Which term insurance plan is best for you?

By -
  Which term insurance plan is best for you? In today's world, where things can be uncertain, making sure your family has enough money for the future is really important. That's where term insurance plans come in handy. They're an easy and not-too-expensive way to make sure your loved ones have enough money if something happens to you. If you live in Nagpur, it's especially important to pick the right term insurance plan, and having a trustworthy insurance agent or advisor in Nagpur can really help. In this article, we'll talk about the different types of term insurance plans available and help you figure out which one might be the best for your situation. Level Term Insurance: One of the simplest and most widely chosen types is level term insurance. With this plan, you pay a fixed amount of money for a certain period, like 10, 15, 20, or 30 years. Many people in Nagpur like this type because it's easy to understand. If you happen to pa
Read more

Six sip secrets you should know.

By -
  Six sip secrets you should know. Mutual fund investing has long been regarded as one of the best strategies for long-term wealth growth. Like many other Indian cities, Nagpur is seeing an increase in the number of people using mutual funds to reach their financial objectives. By using a systematic investment plan (SIP), you can invest in mutual funds in one of the most well-liked and convenient ways possible. However, there are a few SIP secrets that, when understood and used, can drastically affect the results of your mutual funds. We'll go into these six SIP secrets in this blog and examine how they can affect your financial journey, with a particular emphasis on Nagpur and the significance of a mutual fund advisor in Nagpur. Consistency is key - Systematic Investment Plans, or SIPs, encourage investors to make consistent, recurring investments. This methodical strategy makes sure that you invest a set amount of money at regular intervals, usually once a mo
Read more

Types of Systematic Investment Plans (SIPs)

By -
  Types of Systematic Investment Plans (SIPs) A systematic investment plan (SIP) is a common way for people to invest in mutual funds through a system that enables them to make regular, fixed-amount investments at predefined intervals. SIPs offer a disciplined approach to investing and come in a variety of forms to accommodate differing risk profiles and investment objectives. Individuals have access to a wide variety of SIP alternatives offered by various mutual fund firms in Nagpur, a city in Maharashtra, India. Let's examine some of the various SIPs that Nagpur has to offer. Equity SIPs: These investments in equity mutual funds, which invest largely in company stocks, are known as equity SIPs. These SIPs are appropriate for people who have a lengthy investing horizon and a higher risk tolerance. While equity SIPs may offer larger returns, they are also vulnerable to market volatility. Debt SIPs: Debt SIPs invest in debt mutual funds, which invest largely in fixed-income se
Read more