Stay invested for more than a year to avoid MF exit loads
Whether to invest via mutual funds?
Now, with the implementation of the expense ratio the question arises whether it is advisable to invest in equity through mutual fund schemes? If not, then what are the other options through which equity investment can be undertaken? Many investors are self traders/investors in equity markets, but directly investing in equity markets require knowledge of the working of markets and also a great deal of time.
Benefit of investing in mutual funds
Small-time investors benefit from options like systematic investment plans with benefits like rupee cost averaging and long-term benefit in the form of the compounding effect. They also have the benefit of a well-diversified portfolio and no hassles of portfolio management and higher risk adjusted return.
Approach to investment
Basically there are two ways of investing in mutual funds — lumpsum/one time investment and systematic investment plan (SIP). The SIP approach scores more than lumpsum as it reaps the benefit even when the market is heading south. During market falls, for those who have done a one
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