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Think You Don’t Have Enough to Invest in Mutual Funds? Check Again

Every individual has financial goals they strive to achieve. In order to turn the dream into a reality, it is important to take steps that will help you reach there. Wealth will never grow overnight. It is essential to take small, but steady steps that will help you make the right investment decisions and move closer to your goals.

Investing in mutual funds is considered as a safe investment due to the low risk-high return trade-off. An investment in mutual funds remains diversified since the fund managers invest the sum into different securities. Additionally, there is the benefit of compounding interest that generates higher returns in the long run.

In spite of knowing about the benefits of investing in mutual funds, the one common excuse amongst most investors is the lack of funds to invest. Here are some factors to keep in mind that will help you invest even from your limited income.

  • Start small

In order to achieve your long-term financial goals, the first step is to start saving. If you think you do not have enough to invest, you may start saving small amounts each month. This may be made easier by making a list of all the expenses you incur each month and try to cut down on the ones, which are avoidable. For instance, if you watch a movie in a multiplex every alternate weekend, bring it down to once a month. Similarly, if you have a tendency to buy random goods online, get rid of the habit and purchase things only when you need them.

  • Invest regularly

The next step is to invest right. Once you have saved some money, ensure that you invest it into an appropriate fund before you end up spending the amount. Make the right investment choices based on your current financial position, risk-return appetite, and your long-term financial goals. Treat the investment as a regular outflow of cash each month and do not end up spending your entire salary. Buy mutual funds online based on your knowledge of the fund performance or seek advice from the fund manager to help you pick the right fund.

  • Set up a systematic investment plan (SIP)

Investing in mutual funds is easier with an SIP. The good news is that in order to invest in mutual funds, you may start with an amount as low as INR 500. An SIP will automatically transfer a fixed predetermined amount from your bank account to the fund. You will not have to organize the investment and it will bring financial discipline into your life. With an SIP, you do not need to time your entry into the market and the volatility of the market may be smoothened out. As your income increases, you may increase the number of SIPs each year and grow your corpus.

Investing in mutual funds should be a long-term process in order to generate higher returns. All you need to do is start saving and pick up a fund with a higher long-term return. If you have the knowledge of market movement and performance of the funds, you may buy mutual funds online.

The Angel Wealth mobile application offers customized recommendations based on the requirements of the investor. It features an ARQ investment engine and is free of human bias. The user-friendly app will help you make the right investment choices and allow you to invest anywhere, anytime!

About Vikas Agarwal

Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of Finaacle.com - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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3 comments

  1. thanks for sharing this valuable content about mutual fund. can you tell me have any risk in mutual fund. i m working person so i dont have any time to give in mutual fund. but i like to earn money so that mutual fund is right platform for earning money or not.?

    thanks

    • Absolutely, mutual fund is the best way to invest your hard earned money and let it grow. Surely, you need to select mutual fund via analyzing view things to get good return and bi-yearly you can review its performance in compare to other schemes. You can even select different scheme depending your risk profile to optimize return with risk.

  2. I like to thanks you for sharing useful blog information about mutual fund. Everyone wants to invest something in mutual fund to secure future. It helps us to get long time return.

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