Discussion Investing on mutual funds

[Kiran Reddy]

Hello Everyone! I am planning to start investing in Mutual funds from this month, may be starting with 4000-5000 per month.
Does anyone have experience in Mutual Funds and would you be able to guide me as I am newbie.

 

[Ritesh]

1. I would suggest you to research yourself. And for that you must visit moneycontrol site and check last 10 years performance of top 10 MF's.

2. I have a friend who introduced me to MF's. He is Financial Analyst and has good experience. He showed me how to check performance & to know my requirements like how much you need to invest and for how much long?

3. Invest for minimum 3 to 5 years to get amazing returns (amazing in terms of returns compared to FD's).

4. Always remember, to get higher returns you will have to take higher risks. For example, You will get more returns in Large Cap funds compared to Mid Cap funds, but risk is always large in Large Cap Funds. So, decide accordingly.
If you are planning to invest for long term, then this risk lowers.

5. I have personally invested in HDFC Mid Cap Opportunities fund and have got good returns in 22 months (Around 24%).

6. You can look for DSP Black Rock, HDFC Mid Cap & HDFC Large Cap Funds. I have studied/researched on these 3 funds and found them good & safe. Still i would suggest you to ignore my words and research yourself, that will be the best thing.

7. And Most importantly, Mutual Funds are subject to Market Risks. Please refer the offer document before investing.
Hope i would have been of some help to you

 

[Ritesh]

Some more info:
1. There is no lock-in period for MF's. You can anytime redeem your units. However, there is an Exit Load of 1% if you withdraw within 12 months of start of investment.
2. You can anytime buy more units.
3. When market is down, that's the best time to purchase additional units.
Imo, Mutual funds are best way to grow your money and SIP is a boon.
4. Instead of investing 5k in one fund, put it in 2 different funds, 2.5k each in both funds. As per Warren Buffett, you should not put all your eggs in one basket.

 

[Bapun]

Very useful tips @Ritesh bhai. Appriciate your time in writing them.

 

[Ritesh]

Very useful tips @Ritesh bhai. Appriciate your time in writing them.

All pleasure is mine bro..
Really love our ddf. Here we get opportunity to help our bros by sharing our experiences.
This way bros get aware and even they will spread the awareness with their friends.

 

[Sai Jai]

I have very bad experience in MF in 2007 to 2009 period though I'm a newbie to market that time so may its my fault to get loss

..

 

[Optimus_Prime]

In simple word....
When you invest some money for a fixed period in bank it's called Fixed deposit. Bank utilises the money in its internal purpose. The interest rate is varies from 6.5-7.5%. It's no risk deposit scheme. And when u Deposit that same money in open market then it's called Mutual fund..where a group of person mutually depositing their money for a company. It's has higher rate of interest.

When u r Depositing a predefined fixed amount for a time period interval say monthly/ quarterly/half yearly/annually in bank/post office, its called Recurring Deposit.
And this kind of Deposit when u r doing in Open market , is called SIP(Systematic Investment plan).

Both MF, SIP are free of any kind of tax acc to 80(c).

Both MF, SIP has risk Factor which depend upon market stability.

U have to choose wisely and check Risk Factor before investing.

U should Go for SIP and if possible go for more than 15years SIP.

 

[Optimus_Prime]

For more information visit : www.mutualfundsahihain.com

 

[Kiran Reddy]

Thanks you so much @Ritesh bro for detailed gyaan and @Optimus_Prime for adding detail.

I will start researching as suggested by you and will let you know. And btw I am looking for MF's other than tax savings one as my 80c is already full. I am planning for 3 funds of Rs.2000, 1500 and 1500 each per month.

Today I completed my e-kyc so ready for investing

 

[shawl_who]

Mutual funds investments are subject to market risks, please read the offer document carefully before investing