Here is a collection of must-see videos that will help you understand the world of mutual funds. Happy Investing!

Financial discipline is similar to going on a diet. It is never easy. There are plenty of temptations - an urge to over spend, letting emotions control your investments and confusion due to the problem of plenty - look at the plethora of options available in the market, with the returns of one scheme trying to beat the other. Who does one turn to for advice? Dependency on one person or your financial advisor alone is also tricky. Which is why people often turn to mutual funds.

The argument here is that experts are taking care of your investments. Depending on your investment appetite and risk appetite, mutual funds come with a good mix of both equity and debt, which helps you earn an interest of 12-15% or more depending on the type of investment schteme you have picked and how the markets have performed overall. Yet, selecting a mutual fund can be confounding due to the raft of choices available.

Episode 10 I Beginner

Lump Sum Investments

What are lump sum investments?

Investing money is important rather than letting it sit idle in your bank account. A lump sum investment means investing a large sum of money at one go instead of staggering it across a series of installments. A lump sum way of investing is opposite to a Systematic Investment Plan or SIP. Depending on your risk appetite, investment tenure and investment objective you can pick either a fixed income or equity fund. Lump sums can be considered when there is idle cash or windfall gains like a bonus, gifts, pension, sale of a business or property and if you have an irregular income.

Lump sum investments do come with a few advantages especially when you buy at every dip the rupee-cost averaging falls to your advantage. If the markets have corrected and are at reasonably lower levels then lump sum investments seem very profitable because once they recover you could see superior returns on your investment as you are invested fully.  Lump sum investments are generally convenient for investors who can relax without worrying about any further payment to be made in the future and want to spread their investments as soon as possible.