Should a beginner invest in stocks or in mutual funds considering the expectation time for good returns is for a year or a two? : Jama Help Desk

Should a beginner invest in stocks or in mutual funds considering the expectation time for good returns is for a year or a two? Print

Created by: Archana

Modified on: Wed, 2 May, 2018 at 5:00 PM

A beginner is better off investing in mutual funds because of the following reasons:

You can invest with small amounts, as low as Rs 500
They are managed professionally by a fund manager for a low cost
Direct Plans get you lowest cost as no broker commission is involved
Can withdraw anytime you want to (open ended)
Can invest systemically through SIPs. Read Ram Medury's answer to What is the best site or app for investing in direct mutual funds through SIP?

Archana is the author of this solution article.

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