Start Putting your Pizza Money in Mutual Funds
Many people think that growing money is difficult. For times like now, that is nothing but a myth. With many, old as well as new, options available for investing there couldn’t be a better time to begin. Mutual Funds are all the rage right now and one of the best options for you to start your investing journey with. Mutual Funds are pools of money from various investors that will be invested in the stock market, bonds, etc. to produce returns. These funds are pooled by a fund house and managed by a fund manager. There are many online mutual funds available for you to invest in. You can choose one depending on your needs. Nowadays, many mobile apps offer mutual funds investing thus making it very easy for anyone to invest in them.
If you think that you need loads of money to invest in mutual funds, then you couldn’t be more wrong. You can invest in small amounts consistently and with consistency build your wealth. Remember Rome wasn’t built in a day. How do you start then? You can start by investing your pizza money, which would be around 500 Rs. Do the same and sacrifice one-time pizza money every month. Before you realize it you would have invested around 6 thousand rupees in a year. Investing 500 Rs. monthly is a good start and you can always invest more. However, there are two ways you could invest your money when it comes to mutual funds. When you go to invest in any mutual funds India app, you will find 2 options to invest in – One-time payment & SIP.
One-time payment option’s meaning is exactly like it sounds, you only have to pay once at the beginning and that’s it. However, SIP calls for recurring periodic payments. SIP stands for Systematic Investment Plans through which you can invest a fixed amount periodically. In your case, SIP would be a better option as you would invest your pizza money on a monthly basis. This will put you into the habit of investing rather than just aimlessly saving. Use the autopayments feature so that you don’t miss your monthly SIP payment. These apps also come loaded with SIP calculator and Mutual Fund Tracker. This allows you to estimate the approximate returns and see how your mutual funds are performing.
If you have an iron-strong commitment to investing, you can even invest in tax saver mutual funds. However, these mutual funds will have your money locked in for 3 years. It may differ for other mutual funds so research what you are investing in, beforehand. Mutual Funds are a great way to grow your money but they require a lot of patience. So next time you save money you know where to invest it. This is just the scratch on the surface of knowledge about mutual funds, learn more, and start investing rather than just saving!
