Mutual Funds are the most helpful method for the essential and future investments which we often ignore as they do not guarantee returns, especially if we are investing equity mutual funds that invest in stocks . this can be volatile and risky for short terms.
Rather we should only invest in this equity mutual funds if we have the investment horizon for about 5-7 years. Quizes are organized to know more about our Risk profiles, and only with results we can choose the line of mutual funds for investment. For example there are three types of Risk profiles and accordingly the mutual funds to invest in.
- For Conservative Risk Profile, we should invest in Large Cap Mutual Funds.
- For Moderate Risk Profiles, we should invest in Flexi Cap Funds.
There are other two types of Mutual Funds namely Mid Cap Mutual Funds and Small Cap Mutual Funds but these are risky if we are New Investors. This is because being a new Investors the process is very new and with no guarantee returns they lose their nerve and sell or stop their investments during a tough phase in the market.
How does Mutual Funds help Student Investors?
Students have a tough time with investments as they are yet to earn. But students are the future and it is very essential for them to invest for their own security for future. For that the students need to know the art of getting the money for investments. If only we use our mind a little more we can understand that for students
- The main source of earning money is the pocket money they get from their parents which they can save a small amount and invest.
- The other source being the tuitions they can take in the off time or during the long vacations and can earn the extra money can also be invested.
- The students who are also into music can earn from the Gigs and Live Performance they do in different restro’s and bars as Artist also makes them earn more which also can be invested.
Investing in Mutual Funds is the most effective and essential need for not just students but everyone who has some sort of earnings no matter how much you earn. Just like every droplets of rain forms the heavy rainfall similarly saving every penny can have a large investments.
Urging everyone to invest in Mutual Funds and be risk free for Future.
