Mutual fund, SIP investor? Tips to protect your capital and maximise returns THIS Diwali

Mutual fund, SIP investor? Tips to protect your capital and maximise returns THIS Diwali: Mutual fund investment has emerged as a bright spot for millions of investors amidst gloomy and uncertain global economy which is still reeling from the pandemic and Russia’s invasion of Ukraine. 

Currently, mutual funds have about 5.72 crore SIP accounts through which investors regularly invest in mutual fund schemes. 

Rachit Chawla, CEO Finway FSC said, "Investments in mutual funds have been evidently the best investment strategy for any individual. With proper understanding, mutual funds are the safest investment strategy at any time. Even amidst high inflation and bear market, it is safe to invest in mutual funds as the investments will yield profit in the long term and short-term fluctuations shouldn’t be a worry for investors."

"Because of the compound interest rates in mutual funds, the investments are more likely to grow in the longer run. Investors who have been carrying out their financing with patience and confidence have received lucrative returns out of mutual fund investments over the years. While getting lucky by investing in stocks or other short-term investment plans in some instances resulted in short-term wealth generation, investment in mutual funds has proven to be the best way to stay rich," he added. 

Here's a quick guide to maximise your returns from Mutual Fund 

SIP 

Amidst cautious tone in equity market, the investors are betting big on systematic investment plan or SIP to generate long-term wealth. SIP is an investment methodology offered by mutual funds wherein an individual saver can invest a fixed amount in a chosen scheme periodically at fixed intervals — say once a month, instead of making a lump sum investment. The SIP installment amount can be as small as Rs 500 per month. Investors don't have to think about the market fluctuations as the SIP route averages out the investment price over the time. 

Most importantly, it is a great way for people to keep saving as a habit - this is especially important for millennials and GenZ who find it difficult to save. Investors are flocking towards the SIP route for making investments as it helps investors, especially the salaried people, make the investment process simpler.

Diversified investment 

A diversified portfolio helps an investor stay invested across asset classes and avoid missing out on significant price increases in certain asset classes. So, if one asset class performs badly, there are others that perform better.

Direct funds 

Investing through direct plan will help investors earn a little over 1-1.5 per cent  more returns by avoiding paying brokerage to fund managers. 

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Regular investments

Consistent investments help tide over the market volatility helping an investor add more units when the market is down. 

Mutual funds are always advised for investors who are prepared to invest in the stock market and want to reduce the risk. If someone wants to invest in the securities markets and get good returns, mutual fund is one of the best options. As Diwali celebrations is just around the corner,  we make it a point to visit our loved ones during the festival and these visits brighten up celebrations for everyone.

Following the same path, India's fastest-growing asset management company, Nippon India Mutual Fund, launched an initiative to maximise your returns on Diwali celebrations! Called #ShareYourLight, Nippon India has provided us with a toll-free number 1800 547 8227 where it will assist callers with the nearest orphanages, old-age homes, women's shelters and NGOs of their choice; close to their localities. 

Nippon India Mutual Fund encourages everyone to click a selfie/ record a video of their visit and post the same on social media with #ShareYourLight so that the words spreads far and wide.

The 43-player mutual fund industry mainly depends on SIPs for inflows, with equity mutual funds attracting Rs 64,935 crore in the current fiscal (April-August). This came after witnessing an inflow of Rs 1.64 lakh crore in 2021-22.

Rachit Chawla, CEO Finway FSC said, "Mutual funds have also been popular among the masses for generating high returns as there is no cap on earnings and the returns depend on the performance of the security where the money is invested. Mutual funds are also a safe financial investment tool as short-term fluctuations in the market do not affect it."

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