Spend, Save and Invest Smartly
Over the last two years, the world of money has changed for Indians. Interest rates have come down dramatically. Borrowers have become more powerful than ever before, with plenty of lenders slugging it out for their attention.
For investors, though, the choices have become fewer. Investment options such as the 8% Reserve Bank of India bond have died. Bank fixed deposits, the most preferred investment for decades, have lost their shine. Stock market has boomed all right, but the risks have increased too.
In this situation, one investment choice stands out -- the mutual fund. Mutual funds offer almost everything an investor looks for: easy availability, risk containment, liquidity, transparency, professional management and decent returns.
What more you, you don't need millions to invest in a mutual fund. Standard Chartered Mutual Fund, for example, allows investors to start with just Rs 500! Investors seem to have accepted the significance of mutual funds; for many, they now constitute the most significant part of their portfolios.