Only thoughtful investment is helpful in achieving financial goals. More important than the timing of the investment is the time given to the investment. Mutual funds are the best investment to make a big corpus for the future and get good returns.
Investing in mutual funds from a young age proves to be very beneficial.
Mutual Funds are a great tool to achieve all types of financial goals. That’s why people invest in Mutual Funds to meet their short term, mid term and long term financial goals.
Mutual funds are selected keeping in mind the financial goals of an individual, the capital to be invested and the tenure of the investment. A 23-year-old youth and a 40-year-old will have different financial goals, so they have to choose different mutual funds for investment.
how to choose
There are several categories of mutual funds available for short term and long term investments. If a 23-year-old youth wants to invest in mutual funds for the long term, then first of all he has to identify his financial goals and make an investment strategy accordingly. A youth can adopt an aggressive approach while building a portfolio. He can diversify his investments in large and mid cap and flexi cap funds. Initially 10 percent of the capital can also be invested in mid cap funds. Only up to 20 percent of the capital should be invested in a fund or fund house.
You can invest money in these funds
According to a Live Mint report, Harshad Chetanwala, Co-Founder of MyWealthGrowth.com, says that if a youth wants to invest Rs 10,000 through Systematic Investment Plan to get higher returns in the long term, then there are many in the market. Fund options are available. He can invest in any Nifty index fund. The average long term return of these funds is 18% per annum.
Similarly, he can invest money in Canara Robeco Bluechip Fund. Its average return has also been 18%. One can also invest in Parag Parikh Flexi Cap Fund, Mirae Emerging Bluechip Fund and IIFL Focused Equity Fund as they have also given 18 per cent returns. Kotak Emerging Equity Fund can also be a better option for long term investment.