Thinking of investing in mutual funds? Read this to know how you can get started.
Most beginners have no idea how to invest in mutual funds. That’s no surprise since we get next to no financial education when it comes to real world scenarios. To add to that, the little financial education that we do receive in India is limited to traditional investment options such as bank Fixed Deposits and Recurring Deposits.
But as a beginner, it’s important to know about every possible investment option that can help you create more wealth. Luckily thanks to all the ads we see on television we have at least heard of mutual funds. You may speak to a Cube Wealth Coach for individualised support.
Truth be told, mutual funds have the potential to give you better returns than traditional investment options. Let’s look at at some of the benefits of mutual funds:
So as a beginner, how can you start investing in mutual funds? And what should you remember before beginning your investment journey? We’ll walk you through these questions and more in this blog.
The hype & the noise surrounding mutual funds can be confusing. But we’ve simplified it for you. A mutual fund is a pool of money collected from several investors. A fund manager uses his expertise to invest this pool of money in multiple securities such as stocks, bonds, and more.
Mutual Funds Facts At A Glance for (September 2020):
The historical data suggests that mutual funds are rewarding to those who think long term. Let’s take a look at a graph that represents the NAV growth for a small-cap, mid-cap and large-cap fund.
In India, you can choose to invest in mutual funds in 1 or both of 2 ways:
We will let you decide which method is more efficient & comfortable.
You can’t speak the language if you don’t know the words. So if you want to invest in mutual funds, learn the jargon. We’ve compiled a list of mutual fund jargon for you:
This will help you understand what is going on in the mutual fund industry. Plus, if you decide to get a wealth advisor, you’ll know exactly what they are talking about.
Knowing what type of investor you are can save you time & effort. If you can keep up with the market and spare time on rigorous research, DIY can be the best way for you.
On the flip side of the coin, if you’re a busy professional who has too many responsibilities & too little time, getting an investment advisor can be the best gift you give to yourself.
But until recently, investment advisory was available only to HNIs. But Cube has changed the way the investment game is played. The Cube Wealth app gives you access to world-class wealth advisors from India & around the world.
Wondering if you need a financial advisor? Explore Cube Wealth to know more
You must have short term goals such as buying a car or pursuing an MBA or long term goals such as buying a house or sponsoring your child’s US education. But you also have to be prepared for emergencies and opportunities. To achieve these goals, you must target mutual funds that are tailored to give returns over the short, medium and long term.
The ideal investment portfolio differs from investor to investor based on specific investment goals and risk appetite. An under diversified or over diversified portfolio is simply chaotic and unreliable. So how do you strike the right balance?
A Systematic Investment Plan allows you to invest in mutual funds in small chunks over a fixed period of time. It is easy on the pocket and you don't have to worry about intermittent market fluctuations. When you invest a lump sum amount, the market phase you invest in matters a lot. Plus, you’ll have to allocate a large chunk of money.
Both methods have their own pros and cons. Finding the right investment mode for you can be difficult since it will depend on factors such as affordability, risk, age, etc. Consulting a wealth coach can help you get a clear idea of what is right for you.
This is perhaps the most important factor when it comes to mutual fund investments. There’s no point buying a fund if you can’t sell it for profit. So when should you sell a fund? Here’s a list:
A whole host of people on the internet will tell you what to buy. But no one really tells you when to sell. Not if you’re a Cube user though. How? Read on to know more.
Our mutual fund advisor, Wealth First, tells you exactly when to buy AND sell funds. WF handpicks fund especially for Cube users so that they can invest in nothing but the best.
How does WF do it? With a team of professionals who analyze the market based on 12+ parameters. Currently, WF has 3,000+ clients and an AUM of ₹7,000+ Crores.
What’s more? Cube makes it easy for busy professionals to invest in mutual funds via SIP with options like:
Our Wealth Coaches have a detailed conversation with you to understand your goals & risk appetite so that you can invest in funds that work for you. So what are you waiting for? Download the Cube Wealth app today to begin your mutual fund investment journey.
Ans. Beginners can invest in mutual funds with a reliable and powerful app like Cube Wealth. Cube simplifies mutual fund investments by giving you access to handpicked mutual funds that work for you. These funds are based on your investment goals and risk appetite. Learn more about curated mutual funds on Cube Wealth today.
Ans. Yes, you can start investing in mutual funds for as low as ₹1000 on the Cube Wealth app. Cube gives you access to curated mutual funds from categories like liquid funds, internatinoal funds, equity funds, debt funds, ELSS funds, and more. Start investing today.
Watch this video to know the biggest investing mistake: Buying The Wrong Mutual Funds
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