Market kinked investments are those investments that are linked to the equity market. One can take exposure to the equity markets in 2 ways; directly investment in shares or indirect exposure to equity market via Mutual Funds.
1. Direct Equity
One of the best investment avenues available to a layperson today but at the same time one of the riskiest option.
Investing in shares is the best example of a "High Risk High Return" kind of investment.
Unfortunately, this kind of Investment Avenue is not meant for everybody because of the amount of expertise, skillsets, time and energy that it demands. Infact, in recent times even the experts have been proved wrong. How can a normal person who does not have more than an hour to devote daily be confident of choosing the right shares out of a humongous 5,000 + shares listed on the Indian bourses today. Not all of them are going to perform.
So will the common man be denied the rewards of the share market?
The answer is NO.
The common investor has a very wonderful alternative available in the form of Mutual Funds. For further details, visit our mutual funds section.
2. Mutual Funds
One of the most common questions that our clients often ask me is whether they should directly invest in equities and my answer to them 9 out of 10 times is that they should not directly invest in equities but prefer the Mutual Funds route.
Mutual Funds are an indirect method of investing in share market. It is a much safer, disciplined and superior method of benefiting from the rewards of share market than investing directly into equities.
There are a couple of compelling reasons why we insist on mutual funds over equities for most of my clients.
MUTUAL FUNDS V/S DIRECT EQUITY
Mutual Funds offer the following advantages
Diversification
Access to Professional Management
Minimal Investment
Economies of scale
Liquidity
Variety of products to suite all pockets and profile
Decision making rests with experts
|