Investing in mutual funds?

When I started earning, I never liked the fact that my relatives have used to come up to me and say that you should save here you should invest here don't spend like this don't spend like that I never liked the fact and I'm sure that you guys also don't like the free ka gyaan concept, right?

 So I never wanted if somebody called me and said, Give me this much I'll double your money within two-three years, I never believed the fact and I never understood the importance of investing now to double my money or to grow my money to get something. So, that is the main point I was very happy earning spending eventually when my need or when my want has increased to something else from normal clothes to a branded one from a normal using phone to a branded good granted using phone, things started changing, then I understood that the things what I want right now cannot be achieved with my money right now what I'm having. So, I have to invest systematically to understand that so that down the lane after two years, that thing is there with me because the priorities the need the want the things what we want nowadays has the level the prices of those things have increased, the need the want of those things have increased. 

So let's understand what is a mutual fund how it is made. So, basically, the mutual fund is made by collecting a common man's money, for example, the fund manager has collected 100 rupees from me 200 From you 100 from someone else. So it is basically pulling off entire money and making it into a fund. So this is how a mutual fund is made. Every one of us needs to understand that what are the different types of mutual funds? Because where the main problem lies is when you invest in something and you don't know what is it. So I'll tell you in this article, what are the different types of mutual funds and going ahead, what will be the best for you.

 So, let's start with the first type of mutual fund which is the equity fund. Equity funds are those types of funds where generally the money is invested in the stocks of the company. So, generally in equity funds the returns is quite high because the risk is high. The second type of fund is the debt fund what we say so, in debt funds, what happens is basically investing in the debentures and the government stocks. So, basically, this is a very safe kind of investment and but at the same time the returns are very low or returns are comparatively low to the equity funds you can say and the last type is the hybrid fund which is a mixture of the debt fund and equity fund. So, here the returns are moderate. So, let me be very clear with one of the facts that whenever you invest in any sort of fund, you have to be very much sure that within how much time you are needing that money, you want that money, for example, if it is for a short term investment, for example, consider the fact that you want to invest it for just one to two years, then you should go for the Debt funds that are you should invest in the government funds stocks or debentures because those are comparatively less risk-taking and that will give you a moderate amount of return. But at the same time, if you want to like invest in some long time expenditures, long-term investment long-term goals you are considering in that case you have to, for example, SIP is one of the best options when you're considering long-term investments.

 So, the next point that you should make sure that you take into consideration when you are selecting a mutual fund is the parameters that should be there in your mind the first thing what is the return that you are getting after years because when we do investments, the very first thing that comes to the fund managers mind or the customer's mind is how much money I will get how much return I can give it to my customer. So, that is the basic question you should ask your fund manager what is the return that is expected after a certain period? And the next point is you have to make sure that you know about the expense ratio. Now, what is the expense ratio is the expenditure to maintain that fund how much your fund manager is charging, or what is the entry fee or the exit fee from that mutual fund. For example, consider the fact that suddenly auto because of some reason you want to come out of that fund, you don't want to invest anymore, for example, it is not doing good in the market or some other reason.

 So you want to come out so you have to make sure that before entering into me before selecting IMPS, you know that what are the things which you should know you should make sure that you know the fact that this is my entry charge for the mutual fund this is my exit charge if I leave in between these many charges, these many deductions can happen this much can be chargeable, so please make sure that you know all these facts and then enter Enter into then select any mutual fund. So, let us know that how will you open and mutual fund account. So, the first step is if you have any nearby bank or nearby places where you know that these people deal with mutual funds, for example, the many common mutual funds are SBI mutual funds you have HDFC you have ICICI. 

So, if you have something around you, you walk down if you do not have you can check the internet also you can check online that what are the best mutual funds you have to just put down your basic details name, phone number, and the basic details whatever is asked and you can select your own mutual fund. And the main thing what you should know is when it comes to the returns, you can yourself consider and calculate your own return you can consider the fact that this is my goal and this is the return what I'm expecting. So, for example, if your goal is the amount that you need to complete, complete your goal and the mutual fund amount is not matching, you can eventually increase or decrease the amount as you want. So, that is the best part that you can calculate yourself what is the money needed to achieve that particular thing. So here I come to an end to my article,  It's just a matter of one mail or well doctors will right back for all the clarifications. Thank you. I'll be back soon.