A mutual fund is an investment option where you can make a big fund by investing small amounts. Also you can earn good profits on small amount. You do not necessarily have a lot of money. You can also invest a few thousand rupees in the NFO (New Fund Offer i.e. new scheme) of a fund house. After this, you can comfortably deposit a little money through SIP every month. One such opportunity has brought SBI Mutual Fund. SBI Mutual Fund has launched SBI Nifty Next 50 Index Fund. You can invest in it till May 11.
At least how much investment
You can also invest at least Rs 5000 in SBI Nifty Next 50 Index Fund. For your information, let us know that it is an index fund. Therefore, this fund will invest in Nifty 50 stocks. That is, you will also benefit from the boom of the stock market. You can also earn good profits by applying just Rs 5000. After this, a little money can be invested every month through SIP.
Know the details of index fund
Index funds invest in a particular stock market index. Such as SBI Nifty Next 50 Index Fund will invest in Nifty of NS. There are 50 companies in this index. If these companies perform well, the index will go up and you will profit. If these 50 companies underperform then you will also be at a disadvantage. Experts recommend new investors to invest only in index funds.
Whether to invest in SBI Nifty Next 50 Index Fund
Experts are recommending investment in this fund. Because this fund of SBI will be handled by Ravi Prakash Sharma. He has held many funds and all of them have given good returns. Funds they handle include SBI-ETF Gold, SBI Nifty Index Fund, SBI-ETF Sensex, SBI Gold Fund, SBI-ETF Nifty Bank, SBI-ETF BSE 100, SBI ETF Nifty Next 50, SBI-ETF Nifty 50, SBI ETFs include Sensex Nifty 50, SBI ETF Quality and SBI Equity Minimum Variant Funds.
For whom is the best option
As we said, you can invest a small amount of money in this fund every month through SIP. Therefore, this scheme is best for those who cannot put money together and shy away from investing in the direct stock market. As such, investing in the direct stock market is a risky step for new investors.
There is risk
Know one thing that the risk of each mutual fund category is different. You cannot assume that there is more or less risk in a particular mutual fund category based on common scale or common parameters. Certainly if you invest in direct equity, there is less risk in equity mutual funds than this. But the risk associated with each mutual fund category is different. So check the mutual fund scheme’s riskometer before investing.
