If you have ₹100 and want to invest in three mutual funds, you can invest in the following way. First, I will invest ₹20 in Nifty 50, ₹40 in Midcap or Flexi cap and ₹40 in Small cap.
Because this investment strategy gives you the opportunity to invest in different types of funds, which diversifies your portfolio and reduces risk. This investment should be made for at least 10 years so that you can get good returns.
Benefits of investing in mutual funds-
Diversity:
Mutual funds invest in different types of stocks and bonds, which reduces the risk.
Management:
Mutual funds are managed by experienced fund managers.
Liquidity:
Investments in mutual funds can be easily sold and bought.
Low cost: The cost of investing in mutual funds is low.
Convenience:
Investing in mutual funds is easy and requires minimum investment.
Why invest in Nifty 50?
Stability:
Nifty 50 includes the top 50 companies of India, which provides stability.