Many would-be investors are often afraid of getting into the stock market. With such high volatility and potential risk people shy away from it despite the potential gains they are missing out on. That is why mutual funds offer investors the opportunity to exploit the stock market at a lower risk. A packaged financial product can often give investors a greater sense of security. However, that does not mean they are foolproof. Investors should still have a strategy before getting into a mutual fund.
Vikash Agarwal, Co-Founder, CAGRfunds, says that “first time investor should choose his or her funds based on the objective for investing, risk profile and time horizon. “Assuming that such an investor is investing for the long term (> 5 years), has moderate risk appetite and wants to build wealth, he should start by investing in a Balanced Mutual Fund,” Via moneycontrol.com.
In the article, Agarwal suggests five strong first time options for mutual funds as well as several helpful tips to get you more comfortable with this type of investment.
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