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Introduction to Mutual Funds

Mutual funds are one of the best ways to create wealth over the long term. They pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities.

Types of Mutual Funds

Power of SIP (Systematic Investment Plan)

A SIP allows you to invest a fixed amount regularly (e.g., monthly). This brings the benefit of Rupee Cost Averaging, meaning you buy more units when the market is low and fewer when the market is high.

Direct vs Regular Plans

Always opt for Direct Plans over Regular Plans. Regular plans pay a commission to the broker or agent, which eats into your returns over time. Direct plans have a lower expense ratio, leading to significantly higher accumulated wealth over 10-20 years.