Mutual Fund: An easy way of saving

Saving is very important from the viewpoint of future requirements. For a common man with saving the right choice of investment option also holds equal significance and that is why there are many options availed by various companies in the market. Looking at various avenues, one can see what can be the most feasible one and invest his amount in the concerned option. The mutual fund is one of the known options in this era where the investor can start investing with a small amount also. Primarily there are two options available in the market, which are known as an investment with a lump sum amount and systematic investment plan.

The options:

In the lump sum investment, the whole amount is invested in one go, and one can have benefit as per the concerned price of the unit at the time of the investment. If the unit price is high at the moment of investment one may get fewer units allotted while in case of the low price of the unit one may have a higher amount of units allocated. The investor can sell the units and get the amount back to his account as per his requirement if the fund is open-ended one, in case of a close-ended fund one has to wait for the concerned time period.

The option of SIP is considered as a better one if one wants to go for a long term investment and look at the good return. One can also go through mutual fund blog which can help one understand how the investment in SIP can grow and benefit an individual. The best part of the SIP is one can have the investment in installment and hence does not need to take the burden of the same in one month. The units allocated are as per the current price of the units and hence whether the stock market goes up or down the investment keeps on fetching good return only. However, here one needs to note that this is a long term option where three to five years need to be given to have a good return.

Choose the option wisely:

As the market has end number of companies that offer various products in a mutual fund, one needs to check each of them carefully before investing. The vision of the fund, fund manager, AUM, unit price, past performance, investment avenue of the fund and the promoter are some of the notable points that one needs to check before going for any of them. If one knows nothing about the market and still wants to invest, he can ask an expert or check the fund performance on the internet which can help him decide accurately.

To invest the amount in mutual fund one needs to fill a form and pay the amount to the concerned company. With the application, there are also a few documents such as PAN number, ID proof and bank proof need to be submitted to have an easy process. Hence it is not

difficult to invest in the mutual fund at all, but the only point is one needs to plan well before investing.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Jun 13th 2019 00:44. Viewed 308 times.

Share on APSense

Comments