Smart Investing for Millennials: A Guide to the Best Mutual Funds Tailored for the Young Investor in India
If you want to create wealth in your life, one of the top pieces of advice you’ll get from everyone is to start investing early in life and choose the best mutual fund to invest today. Be it a minimum amount in the beginning, you need to start at the right time to be financially safe throughout your life.
Moreover, nowadays, starting investments is as easy as ordering food from your smartphone. You just need to have the right application installed on your smartphone, and you are more than good to go.
Long gone are the days when people actually used to visit their financial institutions for days to understand what suits them the best. Now, in 2023, your smartphone is the most effective tool!
Understanding mutual funds
These are basically investment vehicles that pool money from various individuals and invest it in a diversified portfolio of bonds, stocks, or other securities. One need not worry at all as they are completely managed by professional fund managers, and they offer an accessible way for investors to participate in the financial markets without directly buying any kind of bonds/stocks.
Moreover, they also offer liquidity, allowing investors to buy or sell their shares at the fund’s net asset value (NAV) at the end of each trading day.
Factors for Millennial Investors to Consider before investing
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Risk Appetite
Young investors often have a higher risk tolerance due to their longer investment term while investing in the best performing mutual funds. Equity mutual funds, known for their potential for higher returns albeit with more risk, can be suitable for millennials.
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Expense Ratio
Keeping an eye on expense ratios is crucial. Lower expenses mean more of the returns remain in your pocket.
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Diversification
Choosing funds that offer diversification across sectors or asset classes reduces the risk associated with a particular investment.
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Performance History
While past performance does not guarantee future results, analyzing a fund’s performance over the years can offer insights into its stability.
Which is the best application for millennials to invest in mutual funds?
Millennials are known to save time and do every work in a quick manner. So, instead of visiting financial institutions, they want everything with just a single tap on their smartphone. This is where the Bajaj Finserv application steps in.
Once you sign up for this application, it is a financial playground for you. From investments and loans to recharges, you name it, this application has it.
They have a very straightforward and simple process to invest and even provide you with a mutual fund calculator to decide and choose a required plan. It has immensely helped me in my investment journey.
Here are some of the top mutual funds to invest in 2023:
- Axis Bluechip Fund
- Mirae Asset Large Cap Fund
- UTI Flexi Cap Fund
- Axis Midcap Fund
- Kotak Emerging Equity Fund
Conclusion
Investing in best performing mutual funds tailored for the young investor in our country requires thoughtful consideration. With a focus on risk appetite, expense ratios, diversification as well as historical performance, millennials can make informed decisions.
