investment in mutual fund?



i have started working from the past 3 months, and my salary is 5k, i would like to make investment in mutual fund or it can be any other means of investment, as maximum i can invest around 1k per month.kindly advice me as i do not want to waste my money either spending or lying idle.

investment in mutual fund?
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7 Replies to “investment in mutual fund?”



  1. There are many different mutual funds to invest in. You need to do your own research and find a company that you like and a fund that you like and meets your risk levels. There are many different type of funds, such as sector funds, growth funds, value funds, bond funds, index funds and more. There are also things called loaded and no load funds. Be careful here. No load funds are typically best because they do not charge a fee just to invest. Loaded funds charge a fee, either up front (front loaded) or when you sell (back loaded). The purpose of the load is to increase profits of the company and to encourage investors to stay invested for the long term. Results are not uniform among loaded and no load funds.
    There are many places to start. First since you have not invested yet, your first investment needs to be an IRA. Good news is that you have until 15 April to fund a 2007 IRA. One thing you can do to get started sooner rather than later is to find an index fund from one of the major mutual fund companies. That will get you started and you can spend more time doing research. You can find good reference material online and in various personal investing periodicals.
    Good luck and keep saving!


  2. Before you invest in mutual funds you should contribute to your company retirement plan, if they have one. And an IRA on your own. Then consider mutual funds.


  3. Invest into mutual funds through the Systematic Investment Plan (SIP) route. Over time, this will compound to a large corpus. This is also easier on the wallet as you can start investing with just Rs 500-1000 per month. It’s best for you.


  4. Great, but the best thing to not do is take advice from others that may or may not know anymore than you. And I have seen some pretty bad advice that have made people lose money. Start learning the basics of fundamentals and technical so you will be more informed in your investments. Until then you can find all the basic info you need to learn on websites for free.
    This site should give you a good start.
    http://finance.yahoo.com/education

    If your current/future employer offers an employee 401k plan. Invest up to the matching % of your employers contribution. If plan offers an election to invest in a money market fund you may want to invest in it until you learn more. Next invest in a Roth IRA up to the max allowed(yearly). If you then have more money to invest, go back to your 401k plan and invest the max allowed(yearly). So after you do all the above and want to invest more you should be able to decide how. Only invest money that you can afford to lose. Making some quick money is nice but if you lose it, it gets right ugly.

    You may also think about ETF’s instead of mutual funds.
    http://finance.yahoo.com/etf

    Try what you learn on demo sites. They can be a very fun but educational way to learn from mistakes. If you pick 75% right with play money then you might be ready to start slowly investing.
    http://simulator.investopedia.com/
    http://simulator.zacks.com/
    http://www.fxcm.com/open-free-100k.jsp
    http://www.alpari-idc.com/en/metatrader4
    Or just google for more.

    I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf’s, mutual funds, etc… They have 3 free training sessions a week and you don’t have to buy the software to join in the live chat and text. You can even watch some recorded past live sessions. Here are some past charts that I used.
    http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ
    http://f1.grp.yahoofs.com/v1/MB16RxjOUQt
    There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
    http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt
    http://f1.grp.yahoofs.com/v1/MB16R9wSKdV
    http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6
    http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe
    If you can not view charts above I can email them.

    Here are my favorite sites.

    http://stockcharts.com/
    Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.

    https://www.fidelity.com/
    Has good learning resources.

    http://moneycentral.msn.com/home.asp
    In addition to yahoo finance.

    http://www.reuters.com/
    For news and more.

    http://www.marketwatch.com/default.aspx
    For news and more.

    http://www.valueprime.com/index.php
    For rating stock risk/reward ratio and reports.

    http://www.barchart.com/
    For investing in more than stocks.

    http://www.investopedia.com/
    For more great learning tools.

    http://www.lightninglive.com/
    For best software timing your entry/exits any time frame for day traders and long term investors.

    Others worth exploring.
    http://www.equis.com/
    http://www.stockta.com/
    http://www.secform4.com/

    Best Wishes,
    Burt Whitley


  5. For mutual funds, I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low-expense funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard has an on-line questionnaire which will give you an idea of how to do “Asset Allocation,” determining how much to put in each type of fund.

    I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

    If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

    If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

    Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.
    Sources:
    http://www.vanguard.com/VGApp/hnw/planningeducation
    http://www.fool.com/school.htm
    http://sec.gov/investor/pubs/assetallocation.htm
    http://www.diehards.org/readsites.htm
    http://finance.yahoo.com/education/begin_investing
    http://finance.yahoo.com/funds/basics

    Asset Allocation Calculators
    (Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
    https://personal.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
    https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval
    http://www.ifa.com/SurveyNET/index.aspx

    Web forum: http://www.diehards.org/
    (Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)

    529 plans: http://www.savingforcollege.com





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