I am 23 and I am a hotelier. I want to invest in a mutual fund scheme for a year so that I can learn about how we can earn money from a mutual fund scheme. I have some questions about mutual funds. Please answer them. What is the minimum amount one can invest in a mutual fund scheme? Also, please suggest a scheme for short-term investment.
- Sunny Pal
If you want to invest only for a year, you can only invest in a debt mutual fund scheme. The ultra short-term schemes are suitable for parking money for a few months to a year. However, it won't be a meaningful exercise for you. A small amount in debt scheme will fetch you a marginally better return that a fixed deposit. But you will pay taxes on it as per your applicable slab which will rob most of the returns.
If you are really interested in finding out how mutual funds can help you to create wealth over a long period, we would like you to start a monthly systematic investment plan (SIP) of ₹1,000 in a balanced scheme for a year or two and hold the investment for at least five years. Balanced schemes invest money in a combination of equity and debt, and they are ideal for first-time conservative investors to create wealth over a long period.
This article was originally published on October 12, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
