Alok Kumar Agarwal: Mutual Funds as the Best Gateway to Equities for Beginners
Investing in a mutual fund through a Systematic Investment Plan (SIP) is the best method for new investors. Starting with an index fund is a safer choice because it tends to be less volatile. However, be prepared for market ups and downs when investing in equities. That’s why I recommend a long-term investment strategy to benefit from compounding," says Alok Kumar Agarwal of Alankit.
Mutual funds are relatively easy to invest in. You can buy most of them through a brokerage account or directly from the mutual fund company. Nowadays, many apps make the investment process even simpler, making mutual funds an accessible option for beginners.
Another advantage of mutual funds is their liquidity. Liquidity refers to how easily an investment can be converted into cash. Most mutual funds can be bought and sold on any business day, making them a liquid investment choice.