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How to start investing?
i'm completely a beginner and want to invest... help me to learn. i wnat to invest my money after getting knowledge. please help.
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Hi Ashish. I can understand how confusing it is for the beginners to figure out where to being. Let me help you out here. Here are few guidelines that can help you.
Follow these guidelines for next 2-3 months and you'll get a decent knowledge before you actually start investing in the share market. I hope it helps. Cheers!
Hi,
In order to make investment in mutual fund,you need to know the basics of mutual funds.
Basics of mutual fund-It is a professionally managed financial instrument that pools money from many investors to purchase securities such as stocks, bonds, money market instruments, etc. It offers more diversification and opportunity for investors to make smart investments without being actively engaged in the day to day investment activities.
Advantages of investing in mutual funds include:
Built-in diversification - Mutual Funds invest in a wide range of securities which helps offset the impact of poor performers, while taking advantage of the earning potential of the rest.
Professional Management - Mutual Funds are run by qualified and professional fund managers who actively track their funds and re-balance the portfolios from time to time as new information comes in.
Fulfils various investment objectives - Mutual funds can be used to meet various financial goals. For example:
ELSS funds for tax planning
Diversified equity funds for long term wealth creation
Debt mutual funds for stable returns and preservation of capital
Liquidity - For open-ended funds, you can redeem all or part of your investment any time you wish and receive the current value of the investments. However, it is important to watch out for lock-in period and exit load fees.
Regulations - All mutual funds are required to register with SEBI (Securities and Exchange Board of India). They are obliged to follow strict regulations designed to protect investors. All operations are also regularly monitored by SEBI.
For more details you can check the below link.
Source:-https://www.rupeevest.com/Mutual-Funds/What-is-Mutual-Fund
Hi, Ashish
Please go through some of today's best performing funds where you can invest for a better result.
There are many options in bank i.e; Bank FD, Bank RD, Post Office FD but the concern is where you can get secure, without tax, more interest within a particular time.
For today's' generation or for all there is an opportunity to grow their money called Mutual Fund.
What is Mutual Fund?
Quite simply, a mutual fund is a mediator that brings together a group of people and invests their money in stocks, bonds and other securities.
If investing products contributing items were pastries, mutual funds would be the mixed berry pie. Like a pie, a mutual fund is a gathering of various ingredients, or for this situation, for example, stocks and bonds held inside a single crust, or fund portfolio. When you purchase an offer of a mutual fund, you are basically purchasing a slice of that pie.
Types of mutual funds:
1. Equity Funds: Equity funds invest most of the money that they gather from investors into equity shares. These are high-risk schemes and investors can also make losses, since most of the money is parked into shares. These types of schemes are suitable for investors with an appetite for risk. Read more articles on Equity Funds.
Debt Funds: Debt funds invest most of their money into debt schemes including corporate debt, debt issued by banks, gilts and government securities. These types of funds are suitable for investors who are not willing to take risks. Returns are almost assured in these types of schemes. Read more articles about Debt funds.
Balanced funds: Balanced funds invest their money in equity as well as debt. They generally tend to skew the money more into equity than debt. The objective, in the end, is again to earn superior returns. Of course, they might alter their investment pattern based on market conditions. Read More articles on Balanced funds.
Money Market Mutual Funds: Money market mutual funds are also called Liquid funds. They invest a bulk of their money in safer short-term instruments like Certificates of Deposit, Treasury and Commercial Paper. Most of the investment is for a smaller duration.
Gilt Funds: Gilt Funds are perhaps the most secure instruments that are around. They invest the bulk of their money in government securities. Since they have the backing of the government they are considered the safest mutual fund units around.
What are the benefits of investing in a mutual fund?
Professional Money Management
Diversification
Liquidity
Affordability
Convenience
Flexibility and Variety
Low transaction cost
Well regulated
Transparency
Economies of Scale
Individual-Oriented
Tax benefits on Investment in Mutual Funds :
1) 100% Income Tax exemption on all Mutual Fund dividends.
2) Equity Funds – Short-term capital gains are taxed at 15%. Long-term capital gains are not applicable.
Debt Funds – Short-term capital gains are taxed as per the slab rates applicable to you. Long-term capital gains tax to be lower of – 10% on the capital gains without factoring indexation benefit and 20% on the capital gains after factoring indexation benefit.
3) Open-end funds with equity exposure of more than 65% (Revised from 50% to 65% in Budget 2006) are exempt from the payment of dividend tax for a period of 3 years from 1999-2000.
How do I earn money from mutual funds?
When you invest in a mutual fund, distributions come from three sources:
Divided payments: When a fund receives dividends or interest on the securities in its portfolio, it distributes a proportional amount of that income to its investors.
Capital gain: When a fund sells a security that has gone up in price, this is a capital gain. When a fund sells a security that has gone down in price, this is a capital loss. Most funds distribute any net capital gains to investors annually.
Net asset value: When the NAV of a fund increases, it increases the value of your shares. This is similar to when the price of a stock increases; you don’t receive immediate distributions, but your investment’s value is greater, and you will have made money should you decide to sell it.
When purchasing shares in a mutual fund, you can choose to receive your distributions directly or have them reinvested in the fund.
How to Apply for Mutual Funds?
If you are an investor who is looking at the much talked about mutual fund SIPs, there are many ways to apply to them. Apart from this, you can also visit directly through the website: www.gfswc.com. Remember, you need to comply with Know Your Customer Requirements before you apply. This is also known as KYC Requirement of Mutual Funds. You can also call 91-8010926281 for mutual funds, that we can provide you with all guidance on how to invest.
Hi Ashish Malik,
Invest your money in low-initial-investment mutual funds. Mutual funds are investment securities that will allow you to invest in a portfolio of stocks and bonds with a single transaction, making them perfect for the new investors.
The trouble is that many mutual fund companies require initial minimum investments. If you’re a first-time investor with little money to invest, those minimums can be out of reach. But some mutual fund companies will waive the account minimums if you agree to automatic monthly investments in various schemes of mutual funds.
Decide on an investment approach, Open an investment account, Fund your account with an initial deposit, Set up automated transfers of money to your investment accounts, Buy assets to build a diversified portfolio.
Whether you decide to get an investment advisor to manage your investments, use a roboadvisor, or buy ETFs, you're going to be in a much better position if you start investing now rather than leaving your money to languish in a low interest account, or spending all you earn. You can consult Ajmera x-change they are is a Mumbai based financial service and best online stock/share market broker in India. They provide quick and easy solutions to help investors achieve their financial goals.