Anand Srinivasan Interview: What to look for when investing in a mutual fund?

For the middle class, investing in mutual funds is considered safer than investing directly in the stock market. One, how to choose the right mutual fund plans?

MUTUAL FUND: Let us first look at what a mutual fund is. The Securities and Exchange Board of India (SEBI) allows companies to invest in mutual fund schemes. These companies are called asset management companies. AMC for short.

These AMCs collect money from investors and invest in the stock market, bond markets, or both. They will charge a fee for that. These companies will have a financial manager to handle this. Only these financial managers will decide where to invest.

But one thing is clear when looking at mutual fund markets around the world. That is, the return on investment in the stock market after a financial manager pays his or her own returns does not exceed the return on investment in Index stocks.

How to invest:

That means the stock market index was 13,000 points at the beginning of this year. By the end of the year, it will be 18,000. I.e. 5,000 points high. The ordinary financial manager cannot make a profit beyond this.

Thus, they have now introduced the Index Fund schemes. This does not require a financial administrator. These stocks will be invested in the first 50 stocks in Nifty. Then invest in the next 50. This does not require an administrator. The computer will do this. This will be a long-term profit.

To save tax, one could use Equity-linked savings plans. Instead of investing in a regular mutual fund scheme for more than a year, you have to pay 20 percent tax if the profit is more than one lakh.

Many people have the question of whether a SIP that pays monthly investments is good or whether investing money in bulk is good. SIP is the best investment.

Watch this video to know more about Mutual Fund Investments.