What is the simplest investment strategy?

There is no free lunch ! Direct Investment through Equity or Mutual Fund may not be a good idea for all investors . This post will provide a clear idea ,What is the simplest investment strategy?

YouTuber ,Influencers and finance professionals have played a really big role in creating awareness about personal finance. Easy access to the stock market through Zero broker platform made significant changes in investment flow from retail investors . Mutual Fund Sahi Hai advertisements also help to create buzz all around. Last but not least, Mutual Fund Distributors have played a big role by hand holding people who are not so tech savvy or people who want to take professional advice in person . Government , SEBI , AMCs and other MF agencies have contributed significantly to the entire ecosystem. 

Objective of this post is to create more awareness regarding investment strategy . By watching YouTube videos , you should not invest directly in equity . If you are a retail investor and not aware of the stock market or mutual fund industry , it is not a good idea to invest without understanding your financial goals, risk profile , tax aspects and other important factors regarding investing through Stocks or mutual funds. 

I have seen lots of YouTube videos where simple comparisons are provided between cost saving of few % between direct and regular mutual funds and showing mathematical calculation through excel sheets over 20 years . This is good in excel but in reality you need professional advice if you are not an expert in this field . It is not about saving a few % of cost but about generating overall return for your portfolio and providing you guidance/ hand holding when it is needed most .

If you want to save this cost , you can do but take advice from SEBI registered investment advisor . They will charge fixed fees . Another option is to invest in a regular scheme through a Mutual fund distributor . 

As a retail investor without any expertise/ experience in the stock market, It is not advisable to invest directly in equity . Mutual Fund is the best option to invest under guidance of Professional advisor .

When you invest in a mutual fund as per your financial goals (say retirement ) , you will be ready to invest for the next 20 years and that investment is linked with retirement goals. You will not try to time the market but will wait to get full benefits of the power of compounding over 20 years and not take the decision to withdraw early . At the end of the day , you are not investing in an Equity Mutual fund but in a business (through MF AMC) which will take time to grow and will not double overnight .

Do read our post How to do Investment Planning ? to get a better understanding about Investment Planning.