Q&A: How do I invest in SIP mutual funds in India?
How do I invest in SIP mutual funds in India? I’m a 21year old I know the basics of mutual funds like rupee averaging etc. I don’t know how to start investing and things that I should know before investing.
I was asked to answer (A2A) the question above on Quora. Re-producing here in full.
First, it is not often we see 21 year olds with interest in investing, so kudos to you.
Things to know before you start investing:
- Don’t leave a It leads to regret. “And the rest of my money was in cash, earning virtually nothing; how had I let it sit there for so long?”
- Spend time in “A recent survey.. …found that most of us spend twice as much time choosing a car as we do choosing investments that are supposed to support us for years.”
- Control your investment fees like a hawk. Only invest in “And these fees are nothing to be scoffed at — paying 1 percent more every single year in fees can compound over a lifetime to noticeably lower returns.”
- Ensure that the and not the Mutual Fund company. “If you’re seeking advice, ask yourself one simple question: “If I’m not paying for this adviser, where are they getting their money?” If you don’t know the answer, you may have a problem.”
- Follow a with good default choices and frequent and timely reminders. “A recent study… showed that timely reminders and programs with good default choices can help ensure that good advice is followed. People in well-designed experimental programs who are given sound advice and plenty of reminders tend to save more.”
- Invest early, invest often, and The biggest cost of fear is paralysis. “It is easy to make a mistake in choosing investments. But in an effort to avoid an error, I had been making an even bigger error. As I procrastinated, my money was un-invested and earning zero returns.”
Now to the second part, how to start investing in SIPs? Visitand start investing in SIPs the easy way.