To be a successful investor, first and foremost you must have a *goal* in mind. It could be anything basis your life's priority, such as to buy a house or go on a holiday or to fund higher education for children or to generate wealth.
Next you must decide on the *amount* you can keep aside to help attain your goal, the *time period* for which you can stay invested and your *risk appetite* to attain the goal.
After finalising the above, you would have to undertake extensive research on the various options of investment available in the financial market and plan on how you would invest in the most suitable as per your requirement. Sometimes you may not have the time or expertise to come up with the best plan to achieve it. Under such cases investing in mutual funds is a great way to reach your goals while lowering your risks.
A mutual fund is a pool of money from many investors brought together into one professionally managed investment, wherein the fund can be invested in stocks, bonds or other assets.
Investment is tedious work. One has to be systematic and consistent in investing to be able to attain financial goals. In case of investment in mutual fund, an expert fund manager decides how and where to invest the money, and for this he is paid a fee.Thus, a mutual fund gives an investor the benefits of convenience, diversification, liquidity and low costs; in the journey of accomplishing their financial goals.