fund

Is it wise to invest 100% in mutual funds?


I am 33 year old. Our (wife and I) monthly income after taxes is Rs 1.5 lakh per month. Our monthly expense is Rs 50,000. I wanted to invest that in equity, debt, and gold ETF. I have NPS and term insurance. I have already invested Rs 5 lakh in mutual funds. I am ready to invest for the next 12 years so that I can be financially independent and grow my wealth. Is it a wise decision to invest 100 % in MF/ Stocks? My wife is asking me to invest in / Post office / PPF / VPF, but I am not interested.
–Balaji

Mutual funds are not all about stocks. Mutual funds invest in stocks and debt securities. They even invest in gold, silver, commodities, etc. So, don’t think all mutual funds invest in stocks. Mutual funds that mostly invest in stocks are called equity mutual funds. Debt mutual funds invest in debt instruments or fixed income securities. You have to choose mutual funds based on your goals, investment horizon, and risk profile. You should invest in debt schemes to achieve your goals that need to be achieved in five years. You can invest in equity schemes to meet your long-term goals. Further, you should choose the ideal category based on your investment horizon and risk appetite. For example, if you are looking to park idle cash for a few weeks, you should choose a liquid scheme. If you are looking to invest for a long-term goal without taking too much risk, you should invest in a large cap mutual fund. If all this sounds very confusing, you should seek the help of a mutual fund advisor.



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.