Domestic women may not get their salaries from anywhere, but they know how to save by managing household expenses in total earnings.
She also wants to make a big amount by keeping her small savings in the bank, putting it in the committee or depositing it in the house so that she can come to her work later.
In this way, they would also experience financial power in their hands. She can spend on herself or become a shield for the family in difficult times.
There is another better way to invest these small savings, which is called mutual fund.
Just as you put a fixed amount every month in the committee, similarly you can invest a fixed amount in Mutual Fund through Systematic Investment Plan (SIP) which gives you better results.
By looking at the advertisements, you can feel as if the mutual fund is for those who have huge savings and who have knowledge of the market.
but it’s not like that. If you understand it well then you can also see it as an investment option. So let’s try to understand mutual funds and SIP in a better way.
What is a mutual fund
Put some money into mutual funds to invest on a day, month or year basis.
Companies that sell those funds to mutual funds invest in different places and then give you the returns that come. If you have invested in an interest bearing scheme then you also get interest.
However, your money is not personally invested. A mutual fund of this is created.
Companies investing in mutual funds are called asset management companies (AMCs).
AMC combines several investor funds to form a common fund. In this, the money of investors with the same need and interest is invested separately by putting it together. This fund is handled by a fund manager. According to you, he invests the fund.
Like one investor has 500 rupees, the other has five lakh rupees and the third has five crores rupees and all three want to make one kind of investment. In such a situation, the fund manager invests this entire money at different places simultaneously.
However, the returns from it are given in person. In this, money is received in exchange of money, there is no insurance, mediclaim or anything else.
If you have a thousand rupees to invest, then you will contact the mutual fund company and invest that money in the mutual fund.
There are many ways to invest in mutual funds. You can choose the scheme according to your need. If you do not know, then you can also take help of mutual fund distributors.
In this, returns are received under the NAV system. Companies declare the expenses for that day as NAV and give you money.
Very small start
There is no need of any big amount for investing in mutual funds. You can also start with 500 rupees.
Like, they give one or two thousand rupees to the committee. In the same way, you can invest money here too. She can deposit money in mutual funds every day, every month, quarter, half year, once a year or even once in life.
Rajesh Roshan, director of RD Investment, says, “Usually domestic or low-paid women are able to save small. Even after paying 12 thousand rupees in a committee, you get only 12 thousand rupees. Money does not get increased. While interest on money can also be found in mutual funds. ”
“At the same time, if there is a bidding committee, then the money that is left from the committee every month after bidding can also be invested in mutual funds. In this way mutual funds increase the same savings further. It also gives better returns than saving bank account. ”
Rajesh Roshan says that this is not only for domestic women but working women are also taking interest in it. She does not want to depend on anyone else to manage her money and the distributors and fund managers help her in this. Women are also investing for the time after their retirement.
At the same time, Chartered Accountant Rachna Ranade says, “How long can you invest in the same instruments?” Just as the rate of interest is available in FD, inflation also increases at that rate, then what is your benefit? However, mutual funds give higher returns than this. However, it should be invested keeping in mind the benefits, the risks as well. ”
Mutual fund companies operate as per the guidelines of Securities and Exchange Board of India (SEBI). All these companies are private.
There are mainly three types of mutual funds i.e. you can invest money in these three types based on asset basis.
Equity mutual fund
It is invested in the stock market and you get returns according to the fluctuations in it.
The greater the risk, the greater the benefit. Therefore, it is considered a better option for long-term investment. If you do not want the money of your savings immediately, then you can invest in it for five-six years.
There will also be a question in your mind that if you want, you can invest money directly in the stock market, then what is the need of a mutual fund company.
However, mutual funds are slightly different from investing directly in the stock market. If you have very little money to invest, then you cannot buy shares of big companies which are considered more secure.
At the same time, you can do this through mutual funds, because your money is not used alone but in a big fund.
Debt mutual fund
They invest in bonds, government security, treasury bills and non-convertible debentures, etc.
There are options for short to long term investment. You can also invest for a day in short-term investments. One day interest is available in it. This is called Overnight Fund.
In debt mutual funds, the profit is not very high but the risk is also less. There is a fix return in this. But, there is also a risk of money loss.
If you want to invest for a long time, then you can invest in equity funds, but debt funds are a better option for less time and safe investment.
Rachna Ranade explains, “Mutual funds can also be invested for tax savings. This is called tax saver fund. It is an equity oriented mutual fund, that means a minimum of 65 percent of the money will be invested in an equity fund and the remaining 35 percent will be invested in a debt fund. It is important to have a lock-in period of three years. However, the investor does not have to worry about where much investment will happen. All this will be seen by the fund manager. ”
Hybrid Mutual Fund
It is a mixture of equity and debt mutual funds. It can be invested in both ways.
If you want some of your money to be invested in shares and some bonds, then you can invest in hybrid mutual funds.
In this, the risks and returns are less than equity mutual funds and more than debt mutual funds.
Gold funds are also invested through mutual funds. Gold funds invest in different gold formats. This can be in physical gold or in the shares of gold mining companies.
What is SIP
You must have also heard about the term Systematic Investment Plan (SIP) on mutual funds.
SIP is a plan through which a person can invest a fixed amount in a mutual fund at regular intervals.
If a woman saves one thousand rupees and she feels that she will help the children later in their studies or she wants to buy jewelry or any big item every three years. In such a situation, she can increase them by investing money through a systematic investment plan.
Some special features of mutual funds
Investment experts tell some other important things about mutual funds-
Mutual funds have a lot of flexibility. You have invested money in equity, but later you can also invest it in debt. If you have 2000 rupees, then you can take four mutual funds according to 500 and you can also take one mutual fund of the entire 2000 rupees.
The advantage of mutual funds is that by investing in different funds, you reduce the fear of loss.
Be sure to keep some things in mind before investing. How much money do you have to invest and how long do you want to invest. You can also understand the time in such a way that you need it in how many days, months or years.
You can also invest in mutual funds through some apps.