Alok Kumar Agarwal Alankit: Mutual Funds An Ideal Way to Invest in Equities for Beginners

Mutual funds are a popular way for people to invest in the stock market without needing to choose individual stocks themselves. A mutual fund is like a big pot of money collected from lots of different investors. This money is then used to buy a mix of different investments, like stocks, bonds, and other things. These investments are managed by professionals who make decisions on behalf of the investors.

Recently, a report by the Association of Mutual Funds in India found that the total amount of money invested in mutual funds in India was really high, around 40,04,638 crores, by March 2023. This shows that more and more people are interested in investing in stocks and other assets, especially since the Covid pandemic.

Investing in mutual funds comes with a few benefits. One big benefit is diversification. This means spreading your money across different investments to lower the risk. When you invest in a mutual fund, your money gets spread out over lots of different companies' stocks or bonds. This can be safer than putting all your money in just one or two things.

Alok Kumar Agarwal Alankit suggests that for new investors, investing in a mutual fund through a SIP (Systematic Investment Plan) is a great way to start. He recommends starting with an index fund, which is safer because it's less volatile. However, he also says that investing in stocks comes with some ups and downs, so it's important to be ready for that. He advises investing for the long term to benefit from compound interest.