InvestorQ : what is the intent of mutual funds at price of 50000 to save money for future
Kartik made post

what is the intent of mutual funds at price of 50000 to save money for future

Answer
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5 months ago


Investment in mutual funds is a great option to park your money. However, an investment is much more than just parking your money. If you’re planning to invest through mutual funds, it could turn out to be really profitable, if it is well thought. Mutual funds can fetch an average of 8-9% returns in the long-run.

For example, as you’re planning to invest Rs. 50,000 through mutual funds, you need to decide the composition of your portfolio. Whether it be an all-equity portfolio, a debt-based portfolio, or a mixture of both. If you are willing to take the risk and want comparatively better returns, you can opt for an all-equity portfolio. But if you want some fixed income from your investment portfolio and you are not willing to take a higher risk, you can go for a debt portfolio or a hybrid portfolio.

Now, besides risk and return, the time horizon, and your investment objectives matter as well. Like for how long you want to stay invested, at what intervals you want to infuse more money into an investment, etc.

If you can find answers to all the above questions by yourself, you can create your own portfolio with funds that best suit your requirements. However, if you are not really sure, you should take the help of a mutual fund distributor or a sub-broker.


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Manish Singh answered.
5 months ago


What is your time frame as your earnings will be compounded and the more time you keep the high return you generate..


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vikashkumat answered.
5 months ago


Yes this is good for you