which is a better alternative for beginners? Is investing in mutual funds worth it returnwise?
Hi Shweta. I believe it depends on your knowledge, time and preference.
Invest directly in stocks if
- You have a good knowledge of the stock market or willing to learn.
- You are can spend a decent time (at least 3-4 hours per week) in researching stocks and remaining updated with market/financial news.
- If you want to take control of your money instead of giving it to anyone else to invest.
Anyways, if none of the above-mentioned points applies to you, then you should invest in the mutual funds. They are also good alternatives. Here, a professional fund manager will be responsible for investing your money.
In addition, there are many mutual funds which give double returns than your savings. Therefore, it’s definitely worth it return-wise.
I hope it helps. Cheers!
For beginners mutual funds are the best option to invest. Because FD’s returns are not much.
You can start with your equity market too where you can make a good returns.
If you can take some risk you should go for equity market. In mutual fund you can start with SIP.
Yes, in my opinion investing in mutual funds worth it returnwise, There are many advantages for investing in Mutual Funds like Built-in diversification, Professional Management etc . Refer this.
To enjoy good returns invest your money in equity market for a longer period of time .
There are many equity funds whose 5 year return is greater than 35% like Reliance Small Cap, SBI Small Cap , Mirae Asset Emerging Blluechip etc. You can check the returns of various fund here which might helps you to make investment decisions.
In my opinion investing in mutual fund at initial stage will be a good option. Stocks at early stage will be riskier and the liquidity of stock is a bit confusing topic to understand at the initial stage on which the buying and selling majorly depends.
Thanks and Regards,
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Mutual fund is good idea for starting to invest. Some of the investment banks provides best financial facility to the customer. As per my opinion JM Finance is good service provider. Hope it useful…
Whether you invest in mutual funds or stocks that‚Äôs completely your choice and on how much risk and return you are prepared to handle. As they say if you want a higher return, then you must accept a higher risk. Stocks have a higher risk than mutual funds. If you choose a good mutual funds advisor it doesn‚Äôt require as much time to research because your manager does that for you.
By pooling a lot of stocks in a stock fund, mutual funds reduce the risk of investing. If one company in that sector has a bad manager or a losing strategy, it is balanced by other companies that are performing better. This lowers the risk, thanks to diversification. For example, a financial services fund in 2008 that included Lehman Bros. stock would have declined with Lehman’s demise, but not nearly as much as those who only had Lehman stock…they would have lost their entire investment.