I would like to invest Rs 50,000 in the stock market every month. Should I invest directly in the Sensex 30 shares or should I take the mutual fund route? Please suggest. —Phani Shankar
At a time when the equity market is subject to high volatility, it would be preferable to invest through the mutual fund route. Not to mention the convenience too.
As you are planning a huge monthly investment of Rs 50,000, investing through a mutual fund will help you cut down on the risk involved and also get the benefit of professional management offered by the fund managers.
Apart from this, you can also entail the benefit of investing on a monthly basis through a systematic investment plan where you periodically invest in your fund.
If you are confident of your risk taking ability and are equipped with the right skills required for direct investment, then you could tap the stock market directly.This article was originally published on June 24, 2008.