15 Replies to “Can a housewife invest in mutual funds? Which is the really good and safe ones?”



  1. You certainly can… All you have to do is open an account with an online brokerage like Scottrade (or any other you want).

    As far as picking mutual funds is concerned – the ones that you buy through your broker are ETF’s (exchange traded funds). They are mutual funds that are available for public purchase.

    The best approach is probably to pick index funds… an S&P 500 index fund will perform the same as the S&P 500 (less any management burden). The good thing about these index funds is a low expense ratio (management burden).

    ETF’s have a minimum initial purchase that varies from fund to fund.


  2. Yes. Everyone can invest in MF’s.

    All mutuals funds are dependent on the current market trends.
    So before investing in them, please go through the profile of the MF you are purchasing.
    Things to look at :
    1) In which sector( power, energy, IT etc) , is it investing more and what is the current market returns in hose sectors.

    2) How old that MF is and how has it performed in the last few years.

    Dont go by specualtions. have at least a small knowledge about MF’s and how they work.

    Here is a link which will help you better your understandings :

    http://www.mutualfundsindia.com/

    Hope this helps.

    best of luck!!!


  3. Yes, but before that prepare a PAN card in her name if not she can invest jointly with her spouse. mutual funds are of many varieties. If you r a beginner and desires to invest for a long term (3 to 5 years) period best would be diversified equity funds. Examples are Reliance RSF – Equity, ICICI Pru Infrastructure (G), StanChart Premier Equity (G), DSP-ML India T.I.G.E.R -RP (G), Tata Infrastructure Fund (G) etc
    Every MF carries some amount of risk.


  4. Why not, you can invest in MF’s. but you should be careful while investing. don’t invest large amount in one MF. choose different types like UTI,ICICI, HDFC, i think now a days power , real estate and infrastructure sectors are in boom so choose wisely. if u need take expert suggestions. if you are investing first time read all conditions on offer document. any way investing in MF’s is dare and good decision,

    if you need any help you can contact me .
    ALL THE BEST


  5. Yes, anyone can invest in MF, provided she/he has a regular income or savings. Since you are new in this field, I would suggest to start with, you go for 2 Funds only; DBS Chola MIP & HDFC Prudence, go for Dividend option. Once you gain confidence & interest in investing in MF, you may proceed for Diversified Equity Funds, bit riskier funds and better return too.
    The above mentioned Funds are very best in their category and safe too. Return you may expect higher than usual FDs with Bank/PO etc. and no Tax.
    Read this Magazine, which will help you to learn more about investing in Mutual Fund:
    Mutual Fund Insight.
    Best of luck.



  6. Yes, a housewife can. But PAN is mandatory as per government guidelines and regulations.

    Safety of the mutual fund can never be ascertained in advance. However there are three broad types of mutual fund: 1. equity 2. debt 3. balanced

    Out of the above equity based mutual fund carries highest risk, but it also attracts higher returns as compared to others. Debt mutual fund will give you lower return but will be firmed(as you can say it firmed, but not always), they bear lower risk.

    There are also balanced fund which are mix of equity and debt, but safety is altogether must be considered. I request you to go through Mutual Fund tutorials available on various mutual fund related website to get the basic understanding of the working of mutual funds. Try google for it. If you want to get the in depth knowledge than visit http://investopedia.com/categories/mutualfunds.asp?viewed=1


  7. Anyone above the age of 18, can open an investment account. So yes, a housewife can too, provided she has funds available to invest.

    1. Get yourself a PAN (Permanent Account No.), if you don’t have one. PAN no is mandatory for any financial/investment transaction in India, including Mutual Fund investments. Usually one receives the PAN card within 15-21 days of application. See the details for PAN Applications, here https://tin.tin.nsdl.com/pan/index.html

    2. Open a trading account with ICICIDirect or an Investment account with Citibank. If you already have a bank account with either bank, opening the investment or trading account is fairly simple. You will need to fill up some additional forms, and you can be ready to roll withing 7-10 days

    3. Next you need to do some research, about the best funds to invest in. Fortunately there is a very good, unbiased and independent research site dedicated to the mutual fund industry ValueResearchOnline. Some of the best funds with a long term track record of safety with above average returns are HDFC Prudence, HDFC Taxsaver, SBI Magnum Taxgain, SBI Magnum Contra, Reliance Growth. Check out the top-rated funds there, funds that have a track record of atleast 5 years or more of solid performance. Do some more research, read what the analysts have to say about the fund, fund manager, and its track record, and things like risk/return. You can start form here http://www.valueresearchonline.com/topra

    Good luck. Start as soon as you can.


  8. ya. if she is having pan card, she can invest in MF.

    If you need to save tax then go for tax saving MF and other wise u can look for Equity – diversified funds. again whether u need closed ended or open ended funds again depends on your future and present cash needs.
    For good view of MF u can try the following links:
    1) http://www.rediff.com , stocklive, MF
    2) http://www.mutualfundsindia.com


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  10. Any indian citizen can invest in Mutual Funds.
    Housewives can go in for the Systematic Investment Plan (SIP) options in the Mutual Funds wherein regular investment can be made with small amounts starting from Rs. 500 per month.
    You can go in for debt oriented funds which are less riskier when compared to the other equity funds.


  11. Invest in ETF : ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% – 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.
    http://debts-to-wealth.com/category/Why-Invest-in-Exchange-Traded-Funds.html






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