Mutual Funds India
The fastest growing investment in mutual funds is increasing nowadays. But people do not know the right way to invest in a mutual fund. This is the reason why people can not take full advantage of it after investing in mutual funds. While little investment in the Mutual Fund can also make millionaires. If you invest 100% in the mutual fund, then you can become a millionaire in your life. Mutual funds offer all types of investment in people. Here, from the minimum investment of Rs 500 a month, any money can be levied. Not only this, there is an option to apply money even once a month. Apart from this, taking money from mutual funds is also quite easy. Let's first know how much fund will be prepared on equal investment in the bank and post office in addition to the mutual fund.
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Mutual Fund: Learn The Right Way To Invest The Millionaire That Can Make
How to Prepare Rs 1 Crore Fund
There are only 3 places to invest in the country. There is a mutual fund, another bank and a third post office. Where the interest is received at the bank and post office, there is market link return in the mutual fund. However one should remember that interest rates vary even in the bank and post office.
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Fund of Rs 1 crore will be prepared in the Mutual Fund
In a mutual fund, if a person invests Rs 100 daily or 3000 months, then a fund of one crore rupees will be ready in 30 years. This calculation is based on 12% returns annually.
Although returns are not the same in the mutual fund, but in the long term, returns of more than 12 percent have been received here. In such a case, if returns of up to 15%, then only 30% of the investment of 1800 rupees can also form a fund of Rs. 1 crore.
Learn about the returns of 1 Canara Robeco Emerging Equity Fund, which gives good returns in SIPs in Mutual Funds (MF) in 5 years, more than 20 per cent. The return of 2 DSP small caps is more than 17 percent. 3 Returns of Franklin India Smaller Companies Fund has more than 17 percent. The return of 4 Principal Emerging Bluechip Funds is also more than 17 per cent. 5 HDFC Mid-Cash Opportunity Fund's return is more than 17 percent. Data: Update till 27th February 2019. 5 years returns in the Compound Annual Growth Rate (CAGR).
Now learn how much money will be prepared in the bank and post office with so much investment -
There is a fixed interest in the bank and (post office). Extract the average of last few years, it is not more than 8 percent. So now you know how much money will be prepared in the bank and the post office - if someone deposits 3000 rupees per month for 30 consecutive years through RD and bank and gets 8% interest in the post office So after 30, he will get around Rs 44 lakh. If only 1800 rupees a month will be invested for 30 years, only a fund of Rs 26 lakh will be ready.
That is why a mutual fund is called smart investment.
People start thinking of risk as soon as the name of the mutual fund comes into mind. But there is a need to understand that the investment here is not like the stock market. If you invest your entire money in any one company and for some reason the company gets drowned, all your money will also be sinking, but if you have invested through a mutual fund, then this will not happen to you. Your money is invested in different companies in the mutual fund. In this, your money is invested in different shares and bonds. The advantage of this is that if the money taken in any one company comes into trouble, then the money spent on the rest is covered and it will not hurt you.
Mutual Funds chosen to take risks
Mutual funds offer an investment option as per the risk taking risk. Mutual funds can be viewed in three categories, in which category of High Risk, Medium Risk and Low Risk comes. In such a situation, if you choose the option of high risk at the time of investing in a mutual fund, then the risk will be very high. But the advantage in this is that if you gain, the return will also be very good. At the same time, if you choose Medium Risk option, you will have to take the risk of medium level, you will get the benefit of returns on medium level only. Also, if you choose a minimum risk option in Low Level Risk Zone, you will get the lowest returns. Thus you can choose your own risk in the Mutual Fund.
Income Taxes also save mutual funds
You can also invest in the Mutual Fund to save income tax. When you invest in a mutual fund, you have two options. There is an option to invest in a regular fund and the second is that you invest in a tax saver mutual fund.
Difference in both ways
There is some difference between these two methods of mutual funds. Where you can withdraw your money only after a few months of starting the investment in the regular fund, the tax money is available in the lockin period for 3 years in the tax-saving mutual fund (ELSS). During this lockin period, you can not withdraw your money. However, the lowest tax-lockin period in the country has the lowest tax-saving mutual funds in the case of income tax saving methods.
Tax Saving Mutual Fund
Tax Saving Mutual Fund also gives the benefit of income tax rebate on the investment under Section 80C of the Income Tax Act. This means that you can get Income tax rebate on investments in such a Mutual Fund (Tax Saving Mutual Fund).
How to get protection on investment in a mutual fund
The Securities and Exchange Board (SEBI) does the job of regulating the mutual fund. In this case, the guide line created by SEBI has to be followed by the Mutual Fund companies. This ensures that investors are not unfairly and unfairly misguided. In this case, this guide line works in favor of both the investor and the mutual fund provider. For more information about mutual funds, you can go to the Association of Mutual Fund in India (AMFI) website.
SIP or lump sum investing
There are two options to invest in a mutual fund. One can put money together, while in the second, the option of investment is available every month. Every month the investment option is called Systematic Investment Plan (SIP). If you do not have a large amount together, you can start investing through Systematic Investment Plan (SIP). Many schemes of mutual funds allow the beginning of investment from Rs 500.
Learn what is SIP in Mutual Funds (What is SIP)
A method of investing in a mutual fund is called a Sistmatic Investment Plan (SIP). SIP is constantly invested in a mutual fund at a fixed interval. Actually it is almost like the post office's RD. Such an investment reduces the negative impact of the fluctuations in the stock market on the mutual fund and helps in increasing the returns.
Easy investment from SIP
It is very easy to invest through SIP. To invest in this, you have to link your chosen mutual fund to your bank account. As a result, the date fixed on your behalf is deducted from your bank account on your behalf and automatically goes to the mutual fund company. After starting the SIP, this entire process takes place automatically every month.
SIP decreases investment risk
Investing in a mutual fund (Sistmatic Investment Plan), i.e. SIP, reduces the risk and increases the chances of getting more profit. Whenever we invest in a mutual fund through SIP, our money is invested in a mutual fund at a fixed interval which reduces the risk of volatility in the stock market. Know the other benefits
Small investment
If you do not have a lump sum amount then the SIP can start from only Rs 500. Later, this small amount will gradually take the form of big money one day.
Low risk
At SIP, a fixed interval is deposited in the mutual fund. This reduces the risk of fluctuation in the market. Take an example to understand it. Suppose you have to invest Rs. 1,00,000. And by not investing this amount together, you deposit this amount every month in 10 installments of 10,000-10,000 thousand rupees ie i invest 10,000 thousand rupees every month. In this case, you will get 10 times the opportunity to avail the ups and downs of the stock market, which will reduce your risk.
Words related to mutual funds
NAV (Net Asset Value):
Whenever it is a matter of mutual fund, then a term which is used repeatedly is - NAV. A mutual fund invests money in many places, so if you want to withdraw money from the fund at some point of time, then it depends on its NAV. If not even selling, then it can be used to know about money in the fund. The NAV of a mutual fund is the price that a unit of that fund can be bought or sold.
Asset Management Company (AMC):
The management company is a company that comes in the market with different types of mutual fund schemes. Like the Reliance Growth Fund launched by Reliance Capital Asset Management Limited, which is an AMC, an asset management company.
Portfolio Manager:
Once your money has gone into the mutual fund scheme, then the management of that money is managed by the portfolio manager. They invest your money in stocks or bonds, depending on how your investment is. If seen from the point of view of the scheme, his decisions are very important, because he manages the wealth of thousands of people like you, not just yours.
MF Entry Load:
A mutual fund entry load is an important word that comes in front of every Mutual Fund investor. Entry load and exit load means that when you are investing, the fee to be paid at the time and when you are coming out of the scheme, the fee to be paid at the time when you buy a mutual fund, More money has to be paid. And while selling, you may find less NAV. Although it is not good for investors.
Mutual Fund Portfolio:
All the shares and investments made together make the portfolio together, if any mutual fund schemes buy Reliance, ICICI Bank, Bajaj Auto, IDBI Bank and some government bonds, then they all come together to form a portfolio.
AMU:
The total money invested is called Assets Under Management. The decrease in the atmosphere of the AMU market and the investor's investment and the intensity of withdrawal is decreasing.
SIP:
In most open-ended you can make small investments every month or even quarter, six months or even yearly. It is called Systematic Investment Plan (SIP). It works like recurring deposits of the bank.
NFO New Fund Offer (NFO):
There are new offers of mutual funds whose face value is 10 rupees.
(Note-investment advice is given by brokerage house and market experts.) Please check any kind of advice at your level or through your experts. There are risks of investing in the market, therefore vigilance is necessary.)
