Mutual Funds: For the first time investors investing in mutual funds, hybrid funds will prove to be the best.
Mutual Funds: In the case of investment, investors always try to timing the market, but there is no good or bad time for investing in Mutual Funds.
However, theoretically, the best time to invest in mutual funds is when the NAV is low. Because you get more units due to lower value.
You can start with Rs.500
Madhusudan Booch, AMFI-registered mutual fund distributor and founder of MB Capital, explains that “Generally, investing in mutual funds can be beneficial in three situations.
When the market is at its lowest level, bond returns are high and the real estate segment is bearish. But, it is very difficult to make these conditions together. In such a situation, mutual funds are such an investment, which can be started anytime. You can start with Rs 500 as well.”
Best hybrid fund
Mutual fund experts believe that first-time investors in mutual funds should be careful in choosing the fund, for them hybrid funds will prove to be the best.
Hybrid funds invest in every asset class. You can also invest in Multi Asset Funds investing in Equity, Debt and Gold.
Certified Financial Planner Sameer Shah explains, “Equity valuations are no longer cheap due to the boom in the stock market.
Although high valuations do not mean that the market will fall in the near future, but the risk is increased. So new investors should focus on investing in hybrid funds to cover the risk.”
invest according to your goals
SIP investing allows you to invest in any market condition. When it comes to SIP, timing plays an important role. Investing for a long period of time gives you the opportunity to accumulate more money at different stages as well.
Hedging and balancing is essential:
According to Madhusudan Booch, investors who are very active in equities should also consider rebalancing their portfolio in six months.
If the stock market continues to rise, the benefits of higher valuations will continue to pass away from the hands of investors. Therefore, investing in a mixed asset class will give investors the benefit of a rise in equity.
Also, being a mixed asset class, the risk will also be reduced. Therefore, investors should invest in such funds which also include debt and gold for hedging.
