How exactly must one invest in mutual funds? This question may be lingering on your minds for a long time. We are, of course, talking more in terms of equity funds more than just funds. Must you opt for lump sum investments or adopt a systematic and phased approach to investing (SIP)? Which works better?
Equity mutual funds are those that principally invest in stocks. Simply put, they are instruments that help pool your money to invest in equity stocks after in-depth research. However, before delving into equity funds, let’s first know what mutual funds are and how equity mutual funds differ. A mutual fund is a professionally managed investment