Best Time to Invest in Mutual Funds

Hi, everybody, welcome back to Love U Zindagi, I am Bidisha. In my previous Article actually spoke about mutual funds. And I told you it is one of the best investment options, I actually told you to opt for it. But if you're thinking that what is the right time for me to invest in mutual funds, actually a good time starts once you start investing because there is no minimum or maximum age limits for you to invest in mutual funds, you can actually encourage your kids to do it because they might get cash as gifts from their relatives or on mom, grandparents, whoever it might be on special occasions festivals, or birthdays.

 So what they can do is they can use this money and invest it in mutual funds. And just imagine the amount of investment they would have done when they reach our age. Every person investing in a mutual fund has their own purpose, I'm going to just list out the three purposes which are common among the crowd. So, the first one is wealth creation in long term, the second one is liquidity high short term, and the third one is regular income from my investment. Of course, you will fall under any one of these categories right. 

So, your purpose will also be met, because mutual funds have solutions for all your questions. So, what are the types of mutual funds we have? So, the first one is equity, this is actually invested in company shares, it is a long-term investment that gives you higher returns and it is purely for wealth creation. 

So the second one is income or bond or Fixed Income Fund. In this case, you will be investing in securities, like government bonds, treasury bills, money market instruments, commercial papers and debentures, and much more. This is a much safer investment option, and you'll get regular income. 

And the third one is hybrid. So what is this hybrid fund? This is a mixture of equity and fixed-income funds. So you get the best out of these both. So you have growth and as well as you have income. And few examples, which I would mention are pension plan, child plan. And you also have monthly income plans, and much more I would say. 

So that is all for now, the types of mutual funds we have and when you have to invest in mutual funds. So now if you're thinking yes, this is the right option for me, but then I still have some questions running in my mind or any finance related queries,  So I'll see you again in the next article  Until then you guys take care and bye-bye