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Mutual funds for beginners123
- 1. Mutual funds
For beginners
Page 1 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 2. Investing in equity or stocks, i.e. investing in the share
market is the
most popular option for getting aggressive returns.
At, the same time,
there is always some fear of
investor risk being involved.
Page 2 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 3. Typically, there are two fundamental ways of
reducing the risk.
Seek advice from an experienced
and trusted professional
Diversify, Buy multiple different stocks
as opposed to
buying stocks of just one company,
Page 3 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 4. But, it is not so easy?
Is it?
Good advice is often not easily available.
It comes with a cost
which is especially high for small investors
who are looking to invest a small amount.
And,
Buying multiple stocks is again difficult
for someone who is looking to invest a
relatively small amount. It is cumbersome
and it is difficult to
create a right portfolio, more so, for a new investor.
Page 4 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 5. And, that is exactly why somebody invented Mutual
Funds.
It is a practice where investments from
a large number of investors is pooled together
to create a fund, which is managed by a
professional fund manager and his team.
They call the shots on which stock to buy and which to not.
Investors just have to invest with the fund.
Off course, they always have the freedom
of choosing the most appropriate fund scheme, which fits
their purpose best.
Page 5 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 6. Each mutual fund scheme that deals with equity
often has a
specific purpose or investment
perspective and therefore, it often invests in only a
certain specific type of stocks.
And, it is not just equity that mutual funds deal with.
There are also debt schemes for those
who prefer a safer investment option,
there are tax saving options, schemes that deal with gold and
much more.
In short, mutual fund schemes often come in various shapes
and sizes with multiple colors.
Page 6 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 7. There is a vast sea of choices.
Around 40 fund houses, numerous asset classes and over
4000 schemes.
Each investor is expected to create a
portfolio of 4-6 schemes that fit his
investment objective best
So much choice is great.
And indeed people buy mutual funds.
But, often, so much choice also creates confusion
for investors.
Page 7 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 8. It is difficult for an individual investor to
create his portfolio himself,
unless he takes the advice of an experienced professional
which again brings us back to the same problem.
Advice is often not reliable.
And
reliable advice often comes with a price..
Page 8 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 9. As a result,
most people who invest in Mutual Funds
are those who have a keen interest
or knowledge regarding personal finance
and Mutual Funds
except for those, off course,
who have the luxury of taking reliable
advice from professionals
Page 9 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 10. So, we thought, we should do something.
And, we realized that the
science of Mutual Funds is no rocket science after all.
It is intuitive, simple and logical.
Something which can be easily understood
by everybody, without much effort at all.
The only real challenge
is the vast army of fancy and complicated words that an
average investor has to combat while trying to learn about
personal finance
Page 10 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 11. This is something, due to which,
a vast number of people lose out
on the exciting opportunity of investing in Mutual Funds.
And we have started on a mission
of getting the jargon out of consumer finance,
educating the investors by talking them in the language
they understand best
and designing tools and engines through
which investors can plan
and create their investment portfolios themselves,
as well as keep a close watch on their investments.
Page 11 © 2009-2011 Copyright by InvestCare Pvt. Ltd
- 12. Check out our Planning App and
portfolio designer for
creating an investment portfolio
that best suits your purpose.
Also, have a look at the Invest section,
which will take you through the different asset classes
Keep browsing the website for educational articles and videos
Happy Investing
Page 12 © 2009-2011 Copyright by InvestCare Pvt. Ltd