Alok Kumar Agarwal of Alankit: Why Mutual Funds Are Ideal for New Equity Investors
Mutual funds have many benefits. One big advantage is diversification. This means spreading your money across different investments to lower the risk. When you invest in a mutual fund, you’re putting your money into a mix of stocks or bonds from various companies. This way, your risk is reduced compared to investing in just one company’s stock or bond.
Alok Kumar Agarwal Alankit suggests that new investors should start with a SIP (Systematic Investment Plan) in a mutual fund. He recommends starting with an index fund because it’s less risky due to lower market volatility. However, he advises being prepared for market ups and downs when investing in equities. For the best results, he recommends a long-term investment approach to take full advantage of compounding.