Everybody likes the idea of getting to that figure but not everyone knows how. And there’s nothing worse than not knowing better, especially when it comes to the way we look at money, investments and wealth creation. Let’s take Mutual Funds, some myths and facts around them.
Mutual Funds are risky
Mutual Fund investments can be as low-risk as you wish them to be. The safest options are debt fund, like liquid funds. These funds earn a higher interest rate than fixed deposits, can be withdrawn anytime and work best for short term goals of say 3 months. Therefore these are perfect for creating that Emergency Fund of yours.
All Mutual Funds on Freecharge mention the risk associated, so it’s best to look at your risk appetite and returns expectation(s) before you decide on the best investment option.
Mutual Fund Lock-in
Of all the types of tax saving investment options available, Mutual Funds typically have the least lock-in period(s) with ELSS or equity linked saving scheme being the best type of investment.
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Too late to start investing
Starting early holds true for saving as much for investment. The sooner you start investing, the faster your money gets to work. And the longer it stays invested the larger the wealth it creates.
Starting a systematic investment plan, or SIP is the best way to bring some discipline to your investments, whatever be the fund you decide to go ahead with. A minimum amount of ₹500 is a good way to start your investment journey, and on Freecharge it’s absolutely paperless and contactless.
All you need is your mobile and two minutes to spare.