Every year on the occasion of New Year, people make new resolutions to improve their lives. Some promise to give up bad habits, while others talk about focusing on fitness or diet. At the same time, many people also resolve to become financially strong and save. Saving is a process that demands time and discipline. If you follow this method and invest in 2025, you can add a good amount of funds to your portfolio.
What is the right way?
Investing in mutual funds is similar to indirect investment in the stock market. In this, the money of many investors is collected and invested in various financial instruments like shares, bonds, and money market. It is operated by asset management companies. The risk in mutual funds is relatively low as the funds are invested in various places. The minimum investment amount starts from just Rs 500, making it suitable for small and new investors as well.
These funds have potential.
Financial experts suggest investing in mutual funds for a period of seven years or more. During this time, one should take advantage of a combination of large-cap, mid-cap, and small-cap funds. Large-cap funds include options like ICICI Prudential Bluechip Fund, Nippon India Large Cap Fund, and HDFC Top 100 Fund. Mid-cap funds include Motilal Oswal Midcap Fund, HDFC Midcap Opportunities Fund, and Edelweiss Midcap Fund. Small-cap funds include Motilal Oswal Small Cap and Tata Small Cap Fund.
Make investing easy with SIP.
Systematic Investment Plan (SIP) is considered to be the most convenient and effective way of investing. In this, a fixed amount is invested every month, due to which the average cost of investment remains stable despite market fluctuations. According to experts, it encourages regular investment and helps in getting guaranteed returns in the long run.
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