Mutual funds for beginners123


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Mutual funds for beginners123

  1. 1. Mutual funds For beginnersPage 1 © 2009-2011 Copyright by InvestCare Pvt. Ltd
  2. 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. 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. 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. 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. 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. 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. 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. 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 professionalsPage 9 © 2009-2011 Copyright by InvestCare Pvt. Ltd
  10. 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 financePage 10 © 2009-2011 Copyright by InvestCare Pvt. Ltd
  11. 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. 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