During volatile times, many investors get spooked and begin to question their investment strategies. This is especially true for novice investors, who can often be tempted to pull out of the market altogether and wait on the sidelines until it seems safe to dive back in.
One of the top most questions that comes in each
and every investor’s mind is among investing in mutual fund scheme or direct
equity, what should he or she opt for?
Let’s try to answer this question in this article.
Stocks have the potential for greater earnings and very few long term investment strategies can match the returns realized by stocks. However there is the risk of dynamic market forces that can cause stock prices to fluctuate dramatically. Stock market investors should always be aware that the return on their investment is not guaranteed. Some pros and cons of investing in the Indian stock market:
Inflation never seems like a problem until suddenly it is. While it may be good news for borrowers, since it erodes the value of their debts, it can be damaging to savers, investors and pensioners, chipping away at the value of future interest and dividend payments and eroding the value of their capital. Once price rises become entrenched, consumers feel the pain, businesses become reluctant to invest and the stock market starts to get worried.
In today’s world of soaring prices and rising inflation, some find it hard to make ends meet while some others struggle to maintain a good lifestyle with their limited source of income. This has made people keen to look for other alternative sources of earnings. While investment seems a lucrative option for an extra income, most people remain clueless about the various options available. Every investor has his or her own appetite for risk and any rash and untimely decision can prove to be costly. We need to choose from several asset classes having varying degrees of volatility and risk-return potential.
We hear a lot about mutual funds being the best investment option for long term and a critical instrument in beating the rising inflation in media these days. There is a common idea that it is one of the best tool to get exposure to the capital market, which is true in case of the investors who lack the time and expertise to do research on the capital market.
First-time mutual fund investors should understand the basic concept of mutual funds. For, everyone wants to pool in one’s money in certain mutual fund schemes with a view to earn high returns, but before doing so, there are many things you should be careful about.
As other investment avenues carry risk, even mutual funds carry risk while they endeavour to create wealth for you as investors in long run. Hence you should choose mutual funds based on the risk tolerance level and return expectations. Mutual fund investors can get lured by the flashy numbers of dividend payouts in percentages announced by fund houses on a regular basis in newspapers, websites etc.
Product Categorization as per SEBI Rule – Research Desk Dilzer. Dear Clients some of your schemes have undergone product categorization changes. We are aware of this change and will need to see if firstly there is a category and attributes change in the scheme and also monitor its performance and suggest changes if it does not fall in line with the stated objective, and your goals. We will revert to you individually should there be a change after monitoring the scheme attributes.
Risk / Reward is a common term in financial vernacular, but what does it mean? Simply put, investing money into the markets has a high degree of risk, and you should be compensated if you’re going to take that risk.