Not Just Stocks This Akshaya Tritiya. Check Out Mutual Funds, Too

What to buy on Akshaya Tritiya is the top most concern for most people every year. Some find gold or equities to be appealing. This year, you can add mutual funds to that list. The market is changing. New options are arising.

While traditional choices have their place, considering modern investment avenues like Mutual Funds could be a prudent step towards achieving your long-term financial goals. Make a wise decision and make your Akshaya Tritiya successful. Read more to find out why and how mutual funds can help you.

Why do People Invest in Gold and Stocks on Akshaya Tritiya?

Akshaya Tritiya holds immense significance in India. Falling typically in April or May, it’s considered one of the most auspicious days in the Hindu calendar, a time believed to bring everlasting prosperity and good fortune. On this day, it is believed that buying gold will bring unlimited wealth and good fortune. This is ancient thinking with deep roots. Families buy gold jewellery, coins, or bars to mark new beginnings. It’s not just tradition; many see gold as a safe and stable investment. Gold returned 31% in the last year. This is much more than most fixed deposits or savings accounts

Many people also buy stocks on this day. They wish for good fortune in the stock market. Stocks can give huge returns if the market goes well. But they can also plummet, while gold is considered a safer investment. Stocks are risky, but they can make your money multiply faster. Both have a place in Indian homes. That is why the question of what to buy on Akshaya Tritiya arises every year.

Why Consider Mutual Funds This Akshaya Tritiya?

You can now invest in mutual funds with ease in India. A lot of people are switching from only gold and stocks to mutual funds. Why? Because mutual funds provide safety and growth. You need not select shares or worry about the price of gold. A fund manager does it for you. Mutual funds vs gold is a large discussion in most households now. Gold is safe but slow. Mutual funds may provide you with more returns in the long run.

They also enable you to spread your risk. They will allow you to start small and withdraw or change your plan at any time. The choice between mutual funds and shares is also crucial. Stocks require you to monitor the market. Mutual funds are handled by experts. If you are new, mutual funds are less intimidating. You can select funds for short or long term. You can select funds according to your risk level. This Akshaya Tritiya, you should look at the advantages of mutual funds. They are flexible, convenient, and can suit any budget.

Benefits of Investment in Mutual Funds Over Gold and Stocks

There are several benefits of investing in mutual funds. Some of them are listed below:

• You can begin with a small quantity and can increase when needed.
• You won’t have to watch the market every day.
• The best options are chosen by fund managers for you.
• You can choose funds for growth or safety.
• Diversification lowers your risk as your liability becomes more limited.
• Mutual funds are simple to purchase and sell online.
• There are various tax benefits on specific funds
• SIPs help you invest regularly and build wealth.

Types of Mutual Funds to Invest in on Akshaya Tritiya

There are different types of mutual funds that one can find in India. One can choose as per their aim and risk. The following are the prominent types:

1. Equity Mutual Funds: These are investments in the shares of companies. They might offer a high return, but you bear a high risk.
2. Debt Mutual Funds: These are investments in bonds. They give safe, regular returns.
3. Hybrid Mutual Funds: These are investments that combine shares and bonds. There is balanced risk.
4. Money Market Funds: These are investments in short-term debt. They are generally considered to be very safe.
5. Tax-Saving Mutual Funds (ELSS): These investments allow you to save tax under Section 80C.
6. Index Funds: These investments follow a market index. They are generally inexpensive.
7. Sectoral/Thematic Funds: These are Investments only in a specific sector, such as pharma or IT.
8. International Funds: These have to do with investments in the international market.

You may select any category as per your need. This way, mutual funds become available to all investors and cater to their specific needs.

How to Invest in Mutual Funds on Akshaya Tritiya

Investing in mutual funds is straightforward:

1. Complete Your KYC: Ensure your Know Your Customer (KYC) process is complete using your PAN and Aadhaar. This is a one-time process mandated by SEBI.
2. Choose Your Platform/Method: You can invest through:
   • Online Mutual Fund Platforms (MF Utilities, etc.)
   • Registrar and Transfer Agent (RTA) websites (CAMS, KFintech)
   • Broker Platforms (Many stockbrokers like HDFC Sky offer MF investment services)
   • Directly via Asset Management Company (AMC) websites
   • Mutual Fund Distributors or Financial Advisors
3. Select Your Fund(s): Based on your research and suitability (risk appetite, goals).
4. Decide on Investment Mode: Choose between a one-time Lump Sum investment or starting a Systematic Investment Plan (SIP) for regular contributions. Starting an SIP on Akshaya Tritiya is a great way to begin disciplined investing.
5. Make the Payment: Use net banking, UPI, NEFT/RTGS as per the platform’s options.
6. Get Confirmation: You will receive an email/SMS confirming the transaction and subsequent unit allotment.

Conclusion 

Akshaya Tritiya is a wonderful occasion to focus on building lasting prosperity. While traditional investments like gold hold cultural value, considering Mutual Funds offers a modern, potentially more rewarding path aligned with long-term financial goals. They provide diversification, professional management, convenience, and options suitable for various risk profiles, directly addressing the limitations of traditional mutual funds vs gold or mutual fund vs stocks comparisons. By choosing to invest in mutual funds this Akshaya Tritiya, perhaps by starting an SIP, you take a disciplined step towards harnessing the power of compounding and achieving enduring financial well-being.