Ways to Invest in Mutual Funds in India

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The Ways to Invest in Mutual Funds in India suggests the potential options of lucrative investments in the country. Different ways of investing in mutual funds in India cater to different kinds of investors with different objectives of investment.

The Investment scenario in India is changing and developing on a day to day basis. Mutual funds have become one of the most popular forms of investment. The options pertaining to investments which were previously very popular, such as fixed deposits, bonds, etc, lost its charm.

Though the stock market is a good investment option, but the risk factor associated with it is huge, so it is not a very popular investment option.

Ways to Invest in Mutual Funds in India - Facts

Mutual funds stand out as a lucrative investment option at present. The popularity of the mutual funds is due to the facilities they provide. The advantages of the mutual funds are flexibility, affordability, liquidity, diversification, professional management, potential of return, transparency, low administrative costs, decent returns, and more over small investors can also invest in the mutual funds.

The mutual funds offer schemes for all kinds of investors. The investors have the option of choosing between equity funds which bear little higher risk factors, balance funds which bear slight risk, debt funds which bear high risk. Cash Funds or short term floating rate funds do not bear any risk factor.

The several schemes of the mutual funds cater to different needs of the investors. A person who needs cash within a short time span may invest in cash fund. A short-term bond fund would be helpful for a person who expects a return on investment in 6 - 12 weeks. An equity fund or income fund is for a person who expects returns in a year's time.

Within the different categories there are different funds such as mid-cap funds, blue chip funds, opportunity funds, sectoral funds, dividend yield funds within the equity funds.

The several ways to Invest in Mutual Funds in India, helps people to customize their investment portfolio according to their need.

Last Updated 06/30/2011

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