Alok Kumar Agarwal Advice: How Mutual Funds Can Benefit New Equity Investors
According to a recent report by the Association of Mutual Funds in India, the Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry reached ₹40,04,638 crores in March 2023. This highlights the growing popularity of equity investments, especially after the Covid pandemic.
Mutual Funds offer several advantages for investors. One major benefit is diversification. This means spreading your money across various assets to lower risk. When you invest in a Mutual Fund, your money is distributed across a range of stocks or bonds, reducing the risk compared to buying individual stocks or bonds.
Alok Kumar Agarwal Alankit recommends that new investors start with a Systematic Investment Plan (SIP) in a mutual fund. He suggests starting with an index fund, as it tends to be less volatile. However, it's important to be prepared for market ups and downs. For better returns, he advises investing for the long term to take advantage of compounding.
Mutual Funds are easy to invest in and can be bought through a brokerage account or directly from the Mutual Fund company. Many apps now simplify the investment process, making Mutual Funds a convenient option for those new to investing.