Earning is an important parameter for an easy life in modern days. However, those who have good earning also need to save good amount regularly to keep prepared for the unforeseen events of life. In an emergency which is never expected, one may need an additional amount to meet the challenge, and hence it is necessary to have some amount saved. Those who love to save some amount every month also have great concern with the avenues where one can keep his saved amount and get a handsome return on the same. However, this is a little tricky task as in the market variety of options are available for investment, but it depends on one’s risk-bearing capacity to fetch the desired return from the concerned investments.
Where to invest?
This is a question that haunts almost every investor in the market. The avenue where one can get good return also has a high risk, which one may not be able to bear. In other avenues where the risk is low, one can have less return, which may not be feasible for him. Hence one needs to find the option where one can get good return at low risk, and one such option is a mutual fund. The market has got many companies that deal in mutual funds and have various schemes where one can invest his hard earned money. The system of investment and tracking the same is also simpler in this option, and hence, people find it as a better option than many others in the market.
Who can invest, and how?
Any individual can invest in a mutual fund. One needs to fill the form for the application of investment and provide amount as well as supporting documents that can help him get the amount invested. One can directly invest in any of the companies with the help of a direct mutual fund app or the website of the company. Those who are not tech savvy can also opt for the offline mode of investment, but they have to fill the physical form and provide the documents as well as a cheque of the amount.
Before investing in any of the mutual funds, it is necessary for an investor to check the performance of the concerned scheme and terms and conditions. In many cases, one can find a scheme which is open-ended, which means one can invest the amount at any point of time and redeem the same as and when he wishes. In some cases, there are also close-ended funds where one can invest the amount at any time but cannot withdraw the same before a fixed duration.
The investment in this option can be done in one go with a lump sum amount or also with a SIP where one can invest in MF by instalments. If one goes for instalments, that is SIP he can have more benefits, and hence the majority of the investors prefer to go for this option only. One can start the SIP with as low as 500 a month.