What is Mutual Fund?

A Mutual Fund pools money from various investors and puts these funds into different assets such as equity, debt, gold, etc., depending on the specific scheme chosen by the investor. It is professionally managed and monitored by a fund manager whose goal is to generate returns for the investors. 

Example –  Srishti invests in LXME’s Rs. 100 Equity Fund through a SIP of Rs.100/- monthly. This allows her to diversify her money across different companies that the fund invests in with just Rs. 100.

Let’s see what is mutual funds investment for beginners

Learn about Mutual Funds: What are the different types of Mutual Funds on the basis of asset class?

Explore LXME’s Rs. 100 Equity, Debt and Gold Funds to begin your money journey today!

Mutual Funds Guide: how to decide which Mutual Fund is suitable for you?

In order to decide which MF is suitable for you, a woman needs to determine her financial goals and her time horizon for achieving these goals. 

You can invest in arbitrage funds,  liquid mutual funds which offer a high degree of liquidity and also generate a reasonable return.

Invest in debt mutual funds or funds which are a mix of debt and equity to maintain an optimal balance of safety and growth. 

When your goal is for the long term, you can invest in equity funds, funds that are a mix of equity and debt or gold mutual funds as these funds aim to achieve capital appreciation over time.

Investing in Mutual Funds Guide – How to start investing in Mutual Funds for beginners?

LXME makes investing simple yet powerful for you! Begin investing by following these 6 simple steps – 

Step 1: Download the LXME app

Step 2: Create an account (P.s. it won’t take more than 5 minutes!)

Step 3: Click on the ‘Invest’ tab

Step 4: Choose from 10 expert-curated, goal-based mutual fund portfolios

Step 5: Select an investment method: SIP or Lumpsum

Step 6: Fill details & begin investing

In conclusion, as you have learn about mutual funds before selecting a mutual fund, determine your investment goals, time horizon, risk appetite, investment amount and investment method. Once you decide the time in which you want to achieve your goals, pick a mutual fund accordingly to achieve your financial goals! This was all about mutual funds investment for beginners.

Check out LXME’s goal and time based portfolios and start investing today!

FAQ’s

How should a beginner invest in mutual funds?

Investing in mutual funds can be overwhelming. This is why it is helpful to invest in expertly-curated portfolios that are goal based, for example – investing in LXME’s Child Education Plan if your goal is to fund your child’s education in the future. Check out LXME’s time and goal based portfolios here!

How much should I initially invest in mutual funds?

Your investment amount depends on your individual financial goals and will vary from woman to woman. With LXME, you can start investing in mutual funds with just Rs. 100!

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