News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
General »
 Mutual funds for a first-time investor
 All eyes on Nirmala Sitharaman's second Budget for tax relief
 FM must slash income tax rates, only way to stimulate demand
 Govt may go for income tax relief to spur demand, says report
 Countries should tax the money that their citizens make globally
 Personal income tax rate cut can revive economy
 Economic slowdown hits Income Tax collections
 IFSC and tax bills tabled in Parliament on Monday
 How to calculate tax liability on LTCG accrued from selling gold?
 Tax department launches web portal for exchange of information
 HC asks Tax Dept to permit GST assessees to file for transitional credit

Mutual funds for a first-time investor
January, 13th 2020

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

I don't have any idea about the stock market. So, I am trying to invest in mutual funds. I have a little knowledge about mutual funds. I would like to invest Rs 2,000 per month. Could you please suggest me which plan is better to choose and why? And I have bank accounts in SBI and Axis.

Since you do not have much knowledge about investing in mutual funds, you should seek the help of a mutual fund advisor before investing. You should always choose a mutual fund scheme based on your financial goal, investment horizon, and risk profile. A mutual fund advisor would help you with this task. Since you have not shared your goal, horizon, or risk profile, we would not be able to help you.

Here are a few pointers that would give you a rough idea about investing in mutual funds. If you are investing for a short-term goal, you should stick to bank deposits and debt mutual funds. Ensure that you always choose a debt mutual fund in line with your horizon and risk profile. If you are investing for a long-term goal that is at least five to seven years away, you may consider investing in equity mutual fund schemes.

We typically ask new mutual fund investors to choose a relatively-less risky and volatile equity scheme like aggressive hybrid scheme. We have seen that investors gain confidence once they start to see how their investments grow over a period. After gaining confidence, they can start investing in large cap mutual funds or multi cap mutual funds.

Lastly, you do not need any particular bank account to invest in mutual funds. A bank account in any banks would do.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting