Alok Kumar Agarwal Alankit: Mutual Funds Are Ideal for New Investors in Equities
Investing in a mutual fund through a SIP (Systematic Investment Plan) is the best way for new investors to start. They can begin with an index fund to stay safer since these funds are less volatile. However, it's important to be prepared for some market ups and downs when investing in equities. That’s why I recommend long-term investments to benefit from compounding,” says Alok Kumar Agarwal Alankit.
Mutual funds are easy to invest in and can be bought through a brokerage account or directly from the mutual fund company. Today, many apps make the investment process simple, making mutual funds accessible for new investors.
Another advantage of mutual funds is liquidity—the ability to quickly convert investments into cash. Most mutual funds can be bought and sold on any business day, providing a convenient and liquid investment option.