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Invest in to stock markets via mutual funds

Given the time, effort, and discipline required to be successful in equities, more often than not, new investors give up after facing a few blips. The trick to getting better at equity market investing is to think long-term, have patience, and fervently learn with each experience.  However, not everyone is built that way, and that’s okay. 


Equity markets can be a wealth creator as well as a wealth destroyer. The path to stock market investing is never linear - there will likely be losses and irrational actions before constructing a stock portfolio that is lucrative and equipped to deal with fluctuations. 


Does this mean that you need to set aside your stock market ambitions? Absolutely not. There is a way you can get the benefit of stock exposure , without personally going through the grind. That is by investing in equity mutual funds. 


Equity mutual funds is your vehicle into stock market investing. All you need to do is register and invest in a good scheme that is aligned to your goals, and the mutual fund and asset management company (AMC) will do the rest. These funds are professionally managed by skilled and experienced individuals, which works well for novice investors.


The advantage of investing through equity mutual funds are plenty, some of which are:


•    Diversification: By investing in mutual funds either through SIP or lumpsum, you get access to a diversified stock portfolio, with an efficient risk management mechanism in place.


•    Professional expertise: An equity fund is managed by a qualified and experienced fund manager who takes investment decisions based on in-depth research, with the aim of maximizing investor returns.


•    Systematic Investment Plan: You don’t need to invest bulk in one go. You can invest in fixed amounts periodically (monthly, quarterly, yearly) through Systematic Investment plans (SIP). Given that you can automate these payments , this reduces chances of interfering with the instalments during times of market volatility.  


Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


Parag Nesarikar

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