If you are new to investing, then you should consider investing a part of your earnings in mutual funds. Mutual funds are a pool of professionally managed funds that invest in a diversified portfolio of securities for income generation. A single unit of a mutual fund is a combination of several securities and money market instruments. Asset management companies holding mutual funds pool money from investors sharing a common investment objective and invest the raised capital in various asset classes and fixed income securities. Mutual fund investors are allotted mutual fund units along with the investment amount and on the basis of the current NAV (net asset value) of the fund. The performance of a Mutual Fund scheme depends on its underlying assets and the performance of the various sectors and economies in which it invests.

Market regulator SEBI has further classified mutual funds based on their unique characteristics such as asset allocation strategy, risk profile, investment objective etc. Equity Mutual Funds are those schemes which aim at capital appreciation over the long term by investing predominantly in equity and equity related instruments. , Equity mutual funds can be further classified as small-cap, mid-cap, large-cap, multi-cap and ELSS. ELSS is a tax saving scheme which comes with a lock-in of three years. Among other equity schemes, large-cap schemes can be considered, which seek to earn steady returns with minimal investment risk.

A large-cap fund is an open-ended equity scheme that should invest a minimum of 80 per cent of its total assets in equity and equity-related instruments of large-cap companies. These funds invest in stocks of companies that are ranked 1 to 100 in terms of market capitalization. Also known as bluechip funds, these funds invest only in shares of companies that have a proven track record and are financially sound. The objective of the Bluechip Fund Manager is to create an investment strategy that generates steady capital appreciation without picking high risk stocks. Since it is an equity scheme, investments in blue chip funds cannot be considered safe. Also, these funds do not guarantee capital appreciation, which is why investors should determine their appetite for risk before investing.

Remember to invest early if you want to create wealth through investing in bluechip schemes. It is better to have a long term investment horizon while investing in equity schemes like Bluechip Fund for wealth creation. Historically, equity schemes have shown good capital appreciation for those who stayed invested for a long period of time. Long term investment not only gives investors an opportunity for capital appreciation but also provides an opportunity to beat inflation.

start a sip

Systematic Investment Plan is an investment tool to invest small amounts at fixed intervals till you achieve your investment objective. Investors can choose the monthly SIP amount, but it should not be less than the minimum investment amount mentioned in the offer document. An investor only needs to decide how much to invest and allow auto debit. Thereafter, every month on a specified date, a predetermined amount is debited from the investor’s savings account and transferred to their portfolio. Does not require huge investment amount to start monthly
sip, If you want to benefit from the power of compounding and investment techniques like rupee cost averaging, make sure you stay invested for as long as possible.

IAP Disclaimer:-
“This is an investor education and awareness initiative by Axis Mutual Fund. Investors need to complete a one-time KYC process. For more details visit www.axismf.com or contact us at [email protected]. Investors should only Should deal with registered mutual funds, details of which are available at www.sebi.gov.in – INTERMEDIARIES/MARKET INFRASTRUCTURE INSTITUTIONS section. For any grievance redressal, investors may call us at 1800 221 322 or write to us at customerservice@ axismf.com or register a complaint on SEBI Scores Portal https://scores.gov.in.