"HOW TO START INVESTMENT IN MUTUAL FUND"

MUTUAL FUND industry in India is 57 years old. It started in 1963 with Unit Trust Of India (UTI).
After being so long, still only a small percentage of people invest in mutual fund, the basic reason behind this small percentage is lack of knowledge among the people about the mutual fund industry.

    " According to a report less than 1.5% of Indian population invest in Mutual Fund"

Investors can initially start Investment by investing in Liquid funds which can easily be converted into cash according to the nature of fund.
Top 5 liquid funds are:
• HDFC liquid fund
• ICICI Prudential liquid fund
• Aditya Birla Sun Life liquid fund
• SBI liquid fund
• Reliance liquid fund

Overnight funds are the best option to start with as it has a maturity of 1 day (can also vary till 1month) and these funds are also less risky.
As and when investor gain knowledge about the financial market, he/she can shift towards short term funds (maturity of 6-12 months), medium term funds (maturity of 1-3 years), long term funds (more than 3years).
Investors can also prefer gilt fund which are issued by government and has no risk. Fixed maturity plans are also available as an alternative of fixed deposit.
Further once investors gain knowledge he/she can start investing in equity and hybrid funds which offer higher returns according to their risk taking capacity.
At initial stage investment in equity related funds can be risker, so it's better to start with liquid funds.
"Despite of the pandemic the approximately Rs.39498 net investment has been done in first six months."
This pandemic (COVID 19) has taught us the importance of investment and Mutual fund is best option to start with.

THANK YOU FOR READING TILL END.

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