Mutual fund and Commodities
In this post I am going to talk about Mutual fund and Commodities, What is Mutual fund and from where you can invest in it.
Mutual fund:
Mutual fund is a fund that is collected from the people and this fund is invested in different money instruments. Such as stocks, debt(Corporate loan and government securities), bonds and commodites(gold, silver, etc) and others. Your money is managed by professional fund manager and in return they charge the small fees i.e is expense ratio. You just need to hold tight and relax and fund manager will take care of your money. You can invest for 3 years or 5 years depending upon your goal. They allot the unit depending upon how much you invested. If your fund earns profit then depending upon the unit you will get money.
I invested in three mutual fund i.e is Parag Parikh long term fund, Quantum Mutual Fund and Mirae Tax Saver fund and I do monthly SIP because Share market/Stock market is volatile and all the above fund invest in equity market. If market is performing good then do lumpsum investment. You will know through the Nifty and Sensex.
There are two ways to invest. One is through Regular mutual fund and Direct Mutual fund. Regular fund you can do through Mutual fund agent but the expense ratio is high. You can invest directly through different mutual fund by paytm money app and they charge less expense ratio.
Paytm money app is free and no annual maintenance charge and you can buy mutual fund from this platform. Link: https://www.paytmmoney.com/ and it also safe and so don't worry.
For more information visit this website: https://en.wikipedia.org/wiki/Mutual_fund
To know more about Mutual fund visit this site link :https://www.mutualfundssahihai.com/en
In the next post, I will explain you details about different types of Mutual fund and why should invest in this.
Disclaimer: Mutual Fund are subject to market risk and involves High risk High reward.
Commodities:
In this post I am going to talk about Mutual fund and Commodities, What is Mutual fund and from where you can invest in it.
Mutual fund:
Mutual fund is a fund that is collected from the people and this fund is invested in different money instruments. Such as stocks, debt(Corporate loan and government securities), bonds and commodites(gold, silver, etc) and others. Your money is managed by professional fund manager and in return they charge the small fees i.e is expense ratio. You just need to hold tight and relax and fund manager will take care of your money. You can invest for 3 years or 5 years depending upon your goal. They allot the unit depending upon how much you invested. If your fund earns profit then depending upon the unit you will get money.
I invested in three mutual fund i.e is Parag Parikh long term fund, Quantum Mutual Fund and Mirae Tax Saver fund and I do monthly SIP because Share market/Stock market is volatile and all the above fund invest in equity market. If market is performing good then do lumpsum investment. You will know through the Nifty and Sensex.
There are two ways to invest. One is through Regular mutual fund and Direct Mutual fund. Regular fund you can do through Mutual fund agent but the expense ratio is high. You can invest directly through different mutual fund by paytm money app and they charge less expense ratio.
Paytm money app is free and no annual maintenance charge and you can buy mutual fund from this platform. Link: https://www.paytmmoney.com/ and it also safe and so don't worry.
For more information visit this website: https://en.wikipedia.org/wiki/Mutual_fund
To know more about Mutual fund visit this site link :https://www.mutualfundssahihai.com/en
In the next post, I will explain you details about different types of Mutual fund and why should invest in this.
Disclaimer: Mutual Fund are subject to market risk and involves High risk High reward.
Commodities:
According to Investopedia" A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services."
There are two types of Commodities:
1. Agricultural Commodities: they are rice, wheat, cotton, sugar cane, oranges, sweet corn etc.
2. Non-Agricultural Commodities: they are gold, silver, platinum, palladium, Zinc, Crude oil, currency.
They are all traded in the stock exchange. In India MCX stock exchange. Non-Agricultural Commodities have always liquidity. Liquidity meaning there will be buyer when want to sell your commodity.
For more information visit this link: https://www.investopedia.com/terms/c/commodity.asp
Disclaimer: Trading of Commodities involves high risk, so not recommended.
Bonus tip: If you want to invest in paper gold, then invest in Sovereign Gold Bond that is available in all branches. Sovereign Gold Bond is safe money instrument. There will be no making charges and they will pay interest of annually.
Pros: Suppose you buy gold today at rs. 3897 per gram and after 8 years value of gold rises to 5000 then depending upon how much gram you have will get money from government.
Cons: You should have a demat account to store paper gold. Paper gold is a contract issued by RBI.
In the next post you will learn more about Commodities and If you like this post comment, share this post.
Thank you for your valuable time!!! see you in the next post.
