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What is the right age to invest in mutual funds?

By Finserv MARKETS - Aug 2,2019
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What is the right age to invest in mutual funds?

As you age, your responsibilities grow. Increasing responsibilities implies a need for higher savings. Can this be achieved through smart investments in mutual funds? Let’s see when is the ideal time to begin.

A good option is to begin investing in mutual funds once you receive your first paycheck. But to give you an ideal overview, the best time to begin would be at age 0. Some parents begin investments for their children as soon as they are born. These are then handed over to their children once they turn 18 and show an interest in continuing the investment. Mutual fund returns are amongst the most reliable investment avenues that Indians depend on for long-term planning.

With mutual funds available on Finserv MARKETS, you can invest in direct mutual funds where you can trade directly with the mutual fund company without external broker assistance. This is an added benefit as you do not have to pay extra charges towards a commission/fee for a broker.

What is a mutual fund?

Mutual Funds are formed when money is collected from various investors to purchase company shares, stocks or bonds. This Mutual Fund is collectively operated by a professional fund manager to earn the highest possible returns shared by thousands of investors. The manager’s task is to ensure the best mutual funds for his or her client. These funds are considered to be the best investments by the average working Indian. Each shareholder participates proportionally in the gains or losses of the fund. The Securities and Exchange Board of India (SEBI) regulates mutual funds in India.

What is the right age to invest in mutual funds?

Source: fincash.com

What is the right age to begin investing?

START NOW. The earlier you start, the greater the chances are of achieving your financial goals. On Finserv MARKETS, mutual fund investments are one of the best options for people who do not have the expertise to invest in the market on their own. Professional managers run top-rated mutual fund returns and pick different instruments to invest in. Since these mutual funds pool capital from various investors, it reduces the overall risk of investment.

Choosing the right mutual fund at the right time

  • The concern for most beginner investors is which instruments to choose from to have the best mutual funds. An investor may not have the time, ability or interest to conduct the research required. Therefore, to manage investments, these tasks can be outsourced to Finserv MARKETS that provides exclusive offers based on your risk profile and your investment goals.
  • Your investment pattern can depend on your age and where you are in life. This, in turn, affects the number and type of instruments in your investment portfolio. As you begin to invest early in your career, you can enjoy the power of mutual fund returns through a 0% commission by choosing between debt, equity or hybrid funds on the Finserv MARKETS platform.
  • You are advised to make certain investing choices during each decade of your adult life to have the best investments through an advantage over time. Retirement planning should begin early as it is undoubtedly beneficial to your later days. Risks that come along with investment are important to understand. For this reason, you can gain a portfolio insight by opening an account and getting detailed portfolio summaries and insights into your investment performance on Finserv MARKETS.

6 mutual benefits

Source: PersonalFN.com

Mutual fund investing – ideal for all ages

  • Mutual funds are designed for all age groups since they invest across asset classes. Perks such as professional fund management, easier on the wallet, convenience, tax efficiency and liquidity enhances the appeal of mutual funds as the best investment avenue.
  • A wide variety of mutual funds, with differing levels of risk and return, are available in the market. They depend on your investment goals. Each mutual fund is defined by the types of assets it invests in and returns it offers over a period. Mutual funds can be categorized as under:
  1. Equity mutual funds – Most of the money pooled together is gathered from investors in the stock market. Investors are advised to invest in these funds as per their risk appetite as there is a high risk in equity mutual funds.
  2. Debt mutual funds – Most of the money gathered is from investors into debt instruments such as corporate bonds, government bonds, bonds issued by banks etc. This asset class is best for investors who are risk-averse.
  3. Balanced or hybrid mutual funds – Most of the money gathered is invested in both debt and equity. These are diversified mutual funds with a balance between risk and returns on investment. Balanced mutual funds are the most popular today.

Conclusion

Investing in mutual funds is simple, paperless and efficient. You can open an account with Finserv MARKETS and get financial planning tips and investment advice in just a few clicks. The right age to begin an investment, if you are lucky, is 0. Otherwise, the earliest possible beginning is ideal.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!

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