Mutual Fund investments have proven to be one of the best additions to an investor’s portfolio. However, getting started with Mutual Fund investments can be difficult for new investors.
We’ve all heard the phrase, “Mutual Fund Investments are subject to market risk.”. However, not every mutual fund investor understands what that means. There are different types of mutual funds that have different risk levels and exposures to the market.
Let’s take a simple approach here and understand how we can get started with mutual fund investments. To begin with, goal-based investing with the help of an advisor can go a long way in making your Mutual Fund investments work for you.
If you’re seeking honest & trustworthy advice, Speak to a Cube Wealth Coach for guidance. Let’s start by understanding the various types of mutual funds that you can invest in.
What Are The Different Types Of Mutual Funds?
To put it simply, a Mutual Fund is a large pool of money managed by a Fund manager. There is a variety of Mutual Funds that an investor can choose from such as:
Money Market Funds
Fixed Income Funds
Fund of Funds
There are over 17,000 Mutual Fund variations available in the market. An app like Cube Wealth can help you choose the right ones.
This is done by giving you access to the best mutual funds available at any given time handpicked by our mutual fund advisor, Wealth First.
Over the last decade, Wealth First has a track record that is 50% greater than NIFTY. They manage over 3000 clients and currently have an AUM of ₹7,000 crores.
How To Start Investing In Mutual Funds?
The traditional way of investing in Mutual Funds goes like this: Contact representative > KYC (not paperless) > Submit supporting docs > Invest in funds specific to the fund house/distributor.
This seems like a long and cumbersome process, doesn’t it? Through an investment app like Cube Wealth, you can save time and invest in the best funds from the comforts of your home.
How Cube Wealth Can Help You Get Started
Wealth Advisors can help you build a good portfolio. But their services are only available to the elite. Most regular investors can’t afford to hire full-time wealth advisors.
Well, Cube has changed the way this game is played by giving you access to investment advice from some of India’s & the world’s best wealth advisors. All of this and more through a simple and intuitive Cube Wealth app.
Build a portfolio that matches your financial goals
Read all documents carefully
Evaluate your options
Should You Get Started With Investing In Mutual Funds?
Creating wealth is a long term project which does not happen in one day. Even instant noodles take well over 2 minutes to get ready so always think long term and avoid schemes that promise you overnight success.
Remember to check out the investment platform yourself and also see what the existing users have to say about it. Our recommendation would be the Cube Wealth app which goes beyond a normal SaaS platform and offer.
1) Which is the Best Mutual Fund to invest in 2020?
Ans. You can determine how good a Mutual Fund is based on factors such as historical returns, expense ratio, fund manager, etc. This would require diligent research and keeping an eye on everyday fluctuations. You can also browse through a selection of the best Mutual Funds that Wealth First has curated for Cube Wealth users.
2) Can I buy a Mutual Fund without an advisor?
Ans. Buying a Mutual Fund on your own might seem tempting but it can be really challenging. Spending countless hours on research can be overwhelming which is why it is a good practice to consult a Wealth Coach. They are not just mere advisors but people who care about your financial well-being as a whole. You can speak to a Wealth Coach on the Cube Wealth app to learn more.
3) Which is better, Mutual Fund or FD?
Ans. Liquid funds can be safer and indeed a better alternative to FDs because there is no lock-in period and you can withdraw the money whenever you need it. In general, debt funds, liquid funds & equity funds have a better ROI as compared to FDs.
Shriram is a Content Marketer at Cube Wealth, the Financial Freedom App with a smart Perfect Portfolio Planner. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. Shriram’s love for philosophy, product development, and empowering people through quality content is what got him to Cube Wealth.
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!