If someone is going to invest in Mutual Funds for the first time, then large cap fund should be their first choice.
New Delhi. Investors have benefited well by investing in Mutual Funds in the coronary period. Hence, people are getting attracted towards mutual funds. However, if you are investing in mutual funds for the first time, caution is also required with some information.
According to experts, if someone is going to invest in a mutual fund for the first time, then a large cap fund should be his first choice. After that index funds should be given priority.
According to him, the mutual fund calculator tells you how your money will grow in a certain period. But they do not tell that by investing in which mutual fund your money will increase. Therefore, one should invest in it only after the advice of experts. The special thing is that to make money in mutual funds, you must have a strategy.
returns and good returns with less risk
So far, large-cap and index funds have been the most preferred investment options for investors investing in mutual funds for the first time. Due to low risk in them money can be made. However, it is to be kept in mind that investment in mutual funds is subject to market risks. No mutual fund scheme is risk free. In this news published in Live Mint, tax and investment expert Jitendra Solanki says that for the first time, if you are going to spend money in mutual funds, then large-cap mutual funds will be better for you. In these funds, fund managers invest in shares of the top 100 listed companies. These stocks see much lower deviation than small and medium stocks. Because of this, the risk is also less in funds investing in large cap stocks.
you can do on these funds: Invest in Gaure Jitendra Solanki’s Mirae Asset Large Cap Direct Growth Fund, Axis Blue Chip Direct Growth Fund and Canara Rebeco Bluechip Direct Growth Fund Advice. His advice to investors is also to invest in a direct growth plan. The reason for this is that the broker’s role in the direct growth plan reduces and investors get 1–1.5 per cent additional mutual fund interest in the long term. With this, Solanki has also advised that if you do not have the ability to put lump sum money, then you invest through SIP.
Index funds are also a better option
Moneymaking Singhal of goodmoneying.com says that index funds are also a better option for first-time mutual fund investors. They carry very little risk and their performance is linked to the performance of the index. Singhal says that first-time mutual fund investors can invest in UTI Nifty 50, HDFC Nifty 50 and HDFC Sensex. He also advises that you should also keep an eye on expansions on index funds of different mutual funds, because the higher the expenditure on the funds, the lower your return will be.