5 reasons why Mutual Funds are like buffets
Join the investment game by trying a bit of everything. Mutual Funds are a great option to consider if you’re like that hungry foodie who needs a taste of every dish.
When it comes to investing, diversification is always a good way to balance risk and reward in your portfolio. Mutual Funds are exactly that, offering a varied selection of investments so you don’t need to pick them individually.
Mutual Funds let you invest across a wide range of markets, industries and sectors. They also come with varying risks and rewards so you can always find something to suit your appetite:
- Debt Funds : Funds that invest in fixed income securities like bonds & treasury bills which payout a fixed amount on a fixed schedule
- Equity Funds: Mutual funds that invest primarily in stocks
- Hybrid Funds: These funds allow you to invest in a combination of equity and debt
A fund manager takes care of your unit trust investments – watching the market, selecting investments and adjusting the mix continuously. With access to investment information and research, he can decide on the fund’s strategy and make sharp long-term decisions to manage the funds.
Buffets offer a huge variety at a price significantly lower than if you had ordered all the items à la carte. Similarly, unit trusts enable you to invest in a suite of assets that can include blue-chip stocks at an affordable price, starting from as little as Rs.500 per month.
It’s entirely up to you. Most unit trusts are not locked in for a definite period, and can be sold and converted into cash at any time. So, invest as much as you are comfortable with, using a timeframe that suits you.
Get your first bite
You can choose any of the following options to start investing in Mutual Funds
- Give yourself a head start
Jump the queue and get into it with a lump sum from your bonus, inheritance or savings.
- Grow steadily
Add to the pot with regular monthly contributions via a Systematic Investment Plan (SIP)
digibank offers Mutual Funds that are instant, paperless, signatureless – even transaction fee-less! What’s more? You get to choose from 250+ Mutual Funds across 13 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on digibank.
Read up more on Mutual Funds here
Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.