Nowadays, with easy access to information, many Indians have stumbled into the world of investing. Since technology has provided materials like videos and articles in abundance, it’s become easier for individuals to make sound decisions without any professional help. However, it’s important to stay up-to-date with market trends and do thorough research if you wish to reap the rewards of investing your money wisely.

A mutual fund could be a great solution for somebody who does not have time to monitor financial markets. It is a financial tool that pools money from several investors and directs it into various securities including stocks, bonds, and money market instruments, depending on the particular type of fund. The investments are managed by a fund manager with a team dedicated towards understanding the performance of the components they invest in. In summary, this mode of investment hands over the responsibility to specialised experts and works well for those who would rather delegate such tasks.

In terms of asset classes, these are some of the types of mutual funds

1. Equity Mutual Funds

2. Debt Mutual Funds

3. Money Market Funds

4. Balanced Funds

5. Index Funds

In addition to mutual funds, there are other types of funds such as specialty funds, fund of funds, etc. These types have different risk levels and subcategories. You can learn more about the same here

For the investment novice who receives a salary, Systematic Investment Plans (SIPs) are an ideal way to invest in mutual funds. With SIP, you are putting aside a portion of your income in a consistent manner, allowing you to benefit from market fluctuation by averaging out the purchase price over time. Knowing about mutual funds early is key, as it provides you with the power of compounding. To get started, it’s advisable to establish an account on a dependable platform and begin your venture.