However, if you have a long-term financial goal that needs to be met after five years or so, you can invest in equity mutual fund schemes as these have the potential to offer superior returns than other asset classes.
It’s important to start investing and the beauty of mutual funds is that you can start with as low as Rs 100 per month. The mantra is to “start and stay invested for long term”.
Yes, you can. In a mutual fund scheme, you can make additional purchases in the same fund.
It depends on the amount of money you have to invest. A lumpsum investment gives more time to investment and results in higher returns as the power of compounding (basically earning interest on interest) increases with time.
On the other hand, an SIP (the pre-determined amount invested at a regular interval) gives you the benefit of Rupee Cost Averaging (RCA), which basically balances out the volatility of the market in the long term. Since a fixed amount is invested at regular intervals, you get to purchase more units when the prices are lower and vice versa.
Important piece of advice!
Since you are new to investing in mutual funds, you must invest with the help of a mutual fund advisor for smooth onboarding, expert opinion and careful scheme selection.Also See: Mutual Funds, Funds Investor, Mutual Fund, Long Term, Mutual, Invest, Funds