Hi sir, I am 38 years old looking to invest 5k per month in MF for 50 lakhs. Please guide as I have zero idea about this. I need to start some investment
Ans: It's great you're considering investing in mutual funds (MFs)! Here's a roadmap to get you started with your monthly SIP (Systematic Investment Plan) of ?5,000 towards a ?50 lakh goal:
Understand Risk Tolerance:
MFs come with varying risk levels. Answer this: are you comfortable with some short-term fluctuations for potentially higher returns, or do you prefer guaranteed returns with lower gains?
Choose Investment Tenure:
Aiming for ?50 lakh, how long are you willing to invest? A longer timeframe allows for market ups and downs to even out, potentially leading to better returns.
Pick Fund Category:
Based on your risk tolerance and tenure, consider:
Debt Funds (low risk): Invest in bonds, offering stable returns but potentially lower than equity funds.
Balanced Funds (moderate risk): A mix of stocks and bonds, balancing risk and return potential.
Equity Funds (high risk, high reward): Invest in stocks, offering potentially high returns but with market fluctuations.
Select SIPs:
Choose 1-2 SIPs across different fund categories based on your risk profile.