Diwali is a festival of lights that helps us transition from the shackles of darkness towards the prosperity and success. We consider Diwali a highly auspicious day for investing money, since that investment will invoke the blessings of Goddess Laxmi, bringing wealth and prosperity to the investor. Thus, why not look to invest in mutual funds this Diwali and invoke the blessings of Goddess Laxmi.
Generally, for most of us, investing has been saving money in fixed deposits, buying gold, or investing money in real estate. That said, we voluntarily or involuntarily ignore another very good form of investment – Mutual Funds.
Let’s try to understand what a mutual fund is and how it’s beneficial for investors. ‘Mutual’ refers to many individuals coming together and ‘Fund’ is nothing but money. Thus, mutual fund is a set up where many individuals come together and pool-in money for a common purpose. The purpose here is to benefit from the capital markets. One needs to note that these individuals neither have the required knowledge nor the time to manage these pools. However, they are very clear in their objective, which is to benefit from the capital market. Therefore, an Asset Management Company (AMC) appoints a fund manager to take care of this pool.
The fund manager is a knowledgeable professional who monitors the market continuously and buys corporate/government bonds, treasury bills, stocks, and various kinds of deposits to satisfy the investment objective of this fund. Investment objectives can be many, but one mutual fund will be driven normally by one investment objective. Therefore, for each of those objectives, which depends upon your risk-taking capacity and the time horizon you have for your investment, a mutual fund option will be available. You should invest in that kind of mutual fund, which matches your objectives.
Mutual funds are broadly divided into three categories – Equity, Debt, and Balanced funds. Equity funds are for those who want to invest only into equities to get maximum benefits from the stock market. Debt funds are for those who want to invest only into debt. Balanced funds are for those who want to invest in a mix of both, equity as well as debt.
ACMIIL has great news for you this Diwali. We have introduced state-of-the-art Investmentz App, which makes investing in mutual funds easy, secure, and effective. The app allows you to self-invest or seek expert advice. The best part is that the app helps you create your financial plan by setting your financial goals based on your risk propensity and time horizon requirement. The app will be your financial planner on-the-go. It will help you plan your mutual fund strategy, invest in mutual funds, and track the progress of your mutual fund portfolio real-time. This helps you in making timely changes to your portfolio to stay on track in terms of your financial objectives.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.