The gain in the value of the rupee has been beneficial to the foreign investor. If you invest in the assets of a currency that appreciates (as the rupee has done) then you benefit.
Whether you invest in short-term securities or long-term securities, the interest rate that you will get on either is similar. Which should you choose? Should you invest in short term debt or invest money for a long period?
When you take a loan, always look at your ability to repay: never stretch beyond your limits. Always maintain a buffer for unexpected turn-of-events.
SIP is very helpful in a volatile market. Since you invest a fixed amount, you buy more of the security when its prices fall and less when it is more expensive.
Remember two things: dividend is your own money back to you and it may not be tax-free, and never choose the dividend reinvestment option.
The biggest risk of investing in a mutual fund is one of underperformance.
Here's why you would want to invest in them.
Equity funds like to identify newer avenues of investment and hence they create products around those new avenues. In the second part of this series, we look at the styles and themes of MFs.
Here is the first part of a series of articles to understand mutual funds.
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