Saving of money is a natural tendency of human being and also demand of time in this era of uncertainty. People save good amount every month, but for them, the biggest issue is where to keep the saved amount. In many cases, they go for investment in private options and lose their hard earned money. For those who want to seek the safety of the investment, there are also some options, but in that case, they cannot get a good return. Looking at all these options, one can decipher that the mutual fund is the best option where one can get an average return with average risk.
The investment:
The moment one thinks to invest in a mutual fund, he finds it difficult to know the best mutual fund scheme to invest. In many cases, the need of the investor is different, but he invests in an option that is not as per his requirement and hence he gets disappointed. In such a case, one needs to know what mutual funds are and how they work. Every mutual fund has a different vision and designed with a particular strategy.
Find the right option:
As the market has various options in a mutual fund, one needs to check the same with the help of an expert or study the schemes on the internet which can help him find the best mutual fund scheme to invest. The return, past performance, fund manager, NAV, option for withdrawal and other charges are some of the important points that one must check before going for the investment in any scheme. There is also long term and short term options where one can invest as per his needs. The vision of the company is the most important that can help the investor to get the right option.
Can one get money when he requires?
To a certain extent, yes one can get money whenever he requires unless he has invested the amount in a closed-ended fund where the condition is one has to keep the amount invested for a definite period. In case of the investment with the open-ended fund, one can check NAV and withdraw full amount or redeem a few units from his fund as per his requirement. After providing the request to the company, usually, it takes around 3 working days for an investor to get his money in a bank account by the concerned AMC. Hence liquidity to the invested amount is not a problem when one invests the amount with a mutual fund.
As one can find ample options in the market, after necessary research, one can invest the amount in one go or can invest a little amount every month under a systematic investment plan. If one goes for SIP, he can have benefit irrespective of increase or decrease in the market condition. One can check his folio and NAV on a regular basis to decide if the same is improving or not. Those who are scared from investment in the share market can try mutual fund also.