Anyone can start Investing in Mutual fund in SIP as low as 1000 Monthly.
There are Generally four Types of Mutual fund :
🔷️EQUITY – 75% To 90% amount is invested in Stocks.Risk is higher compared to other Mutual funds.Ideal for long term investment of 5 to 10 yrs plus horizon.Average industry RETURNS are 15% to 20%.
🔷️BALANCED – In balanced Funds 50% is invested in stocks & 50% is invested in Fixed Income securities.Its medium to moderate risk.In should invested with 3 to 6 yrs of horizon.Average Returns 10% to 15%.
🔷️FIXED INCOME – This kind of funds are for fixed returns as name suggest.Its for conservative investor who dont want to take much risk.Risk is much lower compared to other mutual funds.Average industry returns are 6% to 9%.Time frame 1 year to 3 yrs plus.
🔷️MONEY MARKET – Much lower risk compared to other mutual funds.Its for short term capital preservation only.Average returns 1% To 2%.
Disc – All views expressed are personal and only for Educational and study purpose only. Consult your financial advisor before investing or taking any position based on above article.