How to invest every month to get better returns over the next years?

                                  

Earning money always seems attractive.Its a great pleasure to imagine and realize that you have abundance amount of money with you.

But as is the sad reality money doesn't grow on trees.But money can be generated with some research and hard work.

What really are the ways to increase your wealth from Rags to Riches????

You can do one of these two things:-

1. Mutual Find(SIP)
2. Stock markets

Go for stock markets only if you are willing to take risks and have the time to look and analyse the value of the share price and its movement. It requires tremendous patience and risk taking capacity even for investing. However, if you want good returns without taking many risks then Mutual funds is a good choice. In it, your invested amount is managed by a professional fund manager of an Asset Management Company so you don’t have to regularly look after the value of your portfolio. Always try to keep a diversified portfolio as a diversified portfolio will reduce systematic risk arising from the value of share prices.

Mutual Funds SIP will provide good returns without much risk over a period of time i.e. mostly double or triple what bank accounts or FDs will produce.

I would recommend you to consult a NISM certified Mutual fund distributor before investing your money.

There are three types of Mutual Funds:

1. Equity
2. Debt
3. Hybrid

Depending upon the amount you want to invest and your age(i.e. considering your risk appetite), you can choose schemes from these.

                 

Investing in stock markets requires tremendous knowledge and experience so if you are a beginner, I would not recommend you to invest your hard earned money into it rather first learn the ABC of it and then try to invest a very small amount just for gaining experience. As the course is so vast, it would take more than a lifetime to gain knowledge about stock markets so when would you invest!!

As I was reading my usual Business news this morning,I went through an article that recorded the TOP 3 MUTUAL FUNDS Bought and sold in January and I would recommend all the traders to have a thought at them for investment as the net flow of investors grew from 1.06 lakh crores to 22.4 lakh crores.

1.ICICI Prudential MF

Equity assets worth $18.2 billion in 404 securities.

2.HDFC MF

Equity assets worth $20.6 billion in 396 securities.

3.Reliance MF

Equity assets worth $14.2 billion in 533 securities.

As they say : Little drops of water make a mighty Ocean.

So start investing now to make your own Ocean!!!

By-Abhiram Dapke