Best mutual fund schemes for a student
ET Online|
Mar 06, 2018, 11.14 AM IST
I am a student, and I am very eager to invest in mutual funds. Can you suggest some mutual fund schemes for me? I can invest a meager amount and I want good returns with minimum or no risk.
--Sukanya Seluka
You should choose your mutual fund investments based on your goals, investment horizon and risk profile. Since you have not shared these details, we will not be able to recommend any schemes to you.
However, here is how you may proceed. First, identify your financial goal. Is it a short-term goal or a long-term goal? If the goal needs to be achieved in less than five years, consider it as a short-term goal. If you have more than five years to achieve the goal, it is a long-term goal.
For short-term goals, you should invest in safer investment options like bank deposits and debt mutual funds. The rationale is that you should not expose your money to extra risk when you don't have much time in hand. However, when it comes to long-term goals, you should go for equity mutual funds. Equity or stocks have the potential to offer superior returns than other asset classes over a long period. This is why it is considered ideal to meet long-term goals.
As for investing a small amount, well, it is considered the best way to meet your long-term financial goals. Investing a small sum regularly over a long period is the best strategy to create wealth.
All mutual fund schemes come with some element of risk. Debt mutual funds are less riskier than equity mutual fund scheme. Even within the debt and equity mutual fund category, different schemes have different risk profiles.
--Sukanya Seluka
You should choose your mutual fund investments based on your goals, investment horizon and risk profile. Since you have not shared these details, we will not be able to recommend any schemes to you.
However, here is how you may proceed. First, identify your financial goal. Is it a short-term goal or a long-term goal? If the goal needs to be achieved in less than five years, consider it as a short-term goal. If you have more than five years to achieve the goal, it is a long-term goal.
For short-term goals, you should invest in safer investment options like bank deposits and debt mutual funds. The rationale is that you should not expose your money to extra risk when you don't have much time in hand. However, when it comes to long-term goals, you should go for equity mutual funds. Equity or stocks have the potential to offer superior returns than other asset classes over a long period. This is why it is considered ideal to meet long-term goals.
As for investing a small amount, well, it is considered the best way to meet your long-term financial goals. Investing a small sum regularly over a long period is the best strategy to create wealth.
All mutual fund schemes come with some element of risk. Debt mutual funds are less riskier than equity mutual fund scheme. Even within the debt and equity mutual fund category, different schemes have different risk profiles.
