Monday, September 22, 2008

Nothing to beat mutual funds

History has shown that equities have been the best investment vehicle over any long-term period. However, ask any investor and most of them will say that they have lost money on the stock markets. Why this anomaly? The reason is that successful investing requires many things. The first is the discipline to follow the chosen investment strategy. Next comes the ability to choose the proper stocks by doing research or using the services of professionals in the field of investments. Finally, and most importantly, we need to understand that stock prices in the short run are more a function of people's emotions than the fundamentals of the underlying companies.

This is where most investors lose out. They fall prey to their own and sometimes others' mistakes due to the use of emotions in financial decision-making.
Investing in individual stocks can be fun because each company has a unique story. However, it is important for people to focus on making money. Investing isn't a game. Your financial future depends on where you put you hard earned rupees and it shouldn't be taken lightly.

With just Rs.5000, invested in a mutual fund, you can have a Diversified Portfolio of the entire Sensex or Nifty.
What's more, you do not need to daily monitor your stocks and keep track on them. The Professional Fund managers do it for you.
they do provide ample liquidity by offering to buy/sell units on a daily basis with minimum of charges.
Mutual funds are excellent for the new investors because you can invest small amounts of money and you can invest at regular intervals with no trading costs
And do not forget, if you are in the right fund, you make more money than Sensex/Nifty.

All these with minimum of efforts.
Go ahead. Invest in Mutual Funds.
Best of luck,

No comments: