Money is going to be invested in mutual funds for the first time, so keep these things in mind, it will definitely benefit

Mutual fund calculators tell you how your money will grow in a certain period of time. But they do not tell which mutual fund will increase your money. To make money in mutual funds, you must have a strategy. According to experts, if someone is going to invest in a mutual fund for the first time, then a large cap fund should be their first choice. After that the index fund should get preference.

So far, large-cap and index funds have been the most preferred investment options for investors investing in mutual funds for the first time. Money can be made due to low risk in them. However, it is to be kept in mind that investment in mutual funds is subject to market risks. No mutual fund scheme is risk free.

In this news published in Live Mint, tax and investment expert Jitendra Solanki says that for the first time, if you are going to spend money in mutual funds, then large-cap mutual funds will be better for you. In these funds, fund managers invest in shares of the top 100 listed companies. These stocks have much lower deviation than small and medium stocks. Because of this, funds investing in large-cap stocks are also less risky.

Jitendra Solanki has investment advice in Mirae Asset Large Cap Direct Growth Fund, Axis Blue Chip Direct Growth Fund and Canara Rebeco Bluechip Direct Growth Fund. He also advises investors to invest in a direct growth plan.

The reason for this is that the broker’s role in the direct growth plan reduces and investors get 1-1.5% additional mutual fund interest in the long term. With this, Solanki has also advised that if you do not have the ability to invest a lump sum, then you invest through SIP.

Manikaran Singhal of goodmoneying.com says index funds are also a better option for first-time mutual fund investors. They carry a very low risk and their performance is linked to the performance of the index.

Singhal says that first-time mutual fund investors can invest in UTI Nifty 50, HDFC Nifty 50 and HDFC Sensex. He also advises that you should also keep an eye on expansions on index funds of different mutual funds as the higher the expansions on the funds, the lower your return.

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