Grab the Benefits of the Market!!! Invest in Mutual Funds!
The sudden hit of Sensex beyond the milestone index of 60,000 has become the buzzing matter among Indian investors. The consistency in growth and return in several stocks, bonds and mutual funds has increased the probability of a less volatile and stable market in which the investors can believe. After the trauma of the 2nd wave of COVID 19 in India, the market is gaining its strength. So, it is high time to grab the benefits of the market through investing in several schemes of mutual funds.
We know very well that mutual fund investments are subject to market risk. When the market provides a consistent return, so many investors refrain from investments from the fear that the market might fall again. On the other hand, there are prospective investors who choose a bull market to invest in because a bull market ensures that the condition of the economy is favourable and the market has more potential to rise.
The Sensex index hit 61,305.95 today (14 October 2021) at the end of the week. It crossed the historical index of 60,000 for the first time on 24 September 2021, less than a month ago. In the meantime, it has fallen for a few days but it came back once again and is on rising till the date. The present scenario proves that the Indian market has regained its stability. The small and medium cap companies (as per the present market capitalisation) are rising almost simultaneously with the large-cap companies.
Mutual Fund is the most reliable way when you think of flexibility and high return simultaneously. Despite the volatile market during the COVID 19 phase in 2020 and 2021, most of the funds proved themselves capable enough to fight in any hard situation. Even there have been few funds that we’re able to secure more than 50% annual return. So, one thing is very clear, mutual funds were able to scatter the risk factor when the market was volatile. Because the mutual fund portfolio follows diversification so that the investors get a standard return even when there is a bear market.
So, it is quite clear that mutual funds are able to bring you high returns in the bull market. The market is able to provide you with a post-positive return in this condition. Market’s staying with the historical index of 60,000 for a longer period assures you the probability of handsome return in the coming period of time. To be able to catch the benefits of the market, we may consider the following while investing:
- Invest in mutual funds rather than stocks. When you have a chance to lose capital for a specific stock, mutual funds comparatively lower the risk factors through diversification.
- Invest for the long term. at least for a three years’ locking period for a desirable return.
- Though most investors invest in equity mutual funds, it is better to keep 20-30% of your investments in other funds like focussed funds, hybrid funds, or debt funds.
- Determine your risk appetite and investment horizon wisely before choosing any fund.
- Read fund related documents carefully before you proceed with investments.
You can grab the benefits of the market when you invest sensibly and wisely. To determine the level of benefit you can get from the present market a sincere study on the market condition of the present and the past is essential. You may consult an AMFI registered mutual fund distributor for more information.
