How to Start Investing in Mutual Funds?

Actual Question:

How do we start investing in mutual funds, and which types of mutual funds are there?

Answer:

Dear Friend!

Even though the easiest way would be to pick the phone and call a mutual fund for doorstep customer service, I would advice you not to do this. The marketing advisor from the fund, most probably knows nothing about investing and only blurt out prerecorded, jargon filled, platitudes about the schemes for which he or she has been given steep targets.

You must first know about what mutual funds really are, what kinds of funds are there and what schemes will suit you.

Since I have answered similar questions many, many times, instead of repeating myself, I will guide you to these previous answers. Please study them carefully:

• How Good are Investment Advisors?
• Definition of Mutual Fund
• Types of Mutual Funds
• How to Choose the Right Mutual Fund to Invest?
• How Frequent Changes to Mutual Fund Portfolio Affect Investor Interest?
• Miracle of Compounding

 I suggest that after carefully studying the above and other related posts, you please choose only a low cost, well diversified, equity mutual fund. Keep the investments intact for a very, very long time.

I once again repeat that please do not go by the advice given by marketing executives of the funds or so called advisors.

Thank you,

With Best Regards,

Anand