Investing in mutual funds isn't as straightforward as putting in a large sum of money and then withdrawing it once you've made a profit. Setting financial goals, identifying investment opportunities that match your goals, understanding the difference between short-term and long-term investments, maintaining the required diversity in your portfolio, rate of returns, compounding power, and understanding taxation on returns are just a few of the activities involved. Investing in mutual funds is not as simple as you would believe, and you'll need experienced advice to protect your hard-earned cash. And you don't even need a large sum of money to invest in mutual funds all at once. You can also invest through a SIP, which allows you to invest as little as Rs.500 every month. Furthermore, even if you have the necessary funds to make a lump-sum investment, it is recommended that you invest through a systematic investment plan (SIP) because it allows you to benefit from rupee cost averaging, compounding power, and it is also less stressful.
