Passive funds for young earners

What a great moment!
My first salary. I am all set for financial freedom. But what should I do with it?

Regularly investing a small portion of your salary can reap huge rewards. Moreover, the earlier you start, the better. With time on your side, you can benefit from the magic of compounding.

But wait...
There are so many options to choose from.

• Mid-cap equity funds
• Index funds
• ETFs
• Hybrid funds
• Thematic funds
• Sectoral funds
• Large-cap equity funds
• Flexi cap funds
• Traditional investments

Young earners might not be financially savvy in the first place. They may not know how to start investing. Passive funds can be of great help here.

Passive funds simply track an underlying index and seek to generate returns as per that. They comprise index funds and Exchange Traded Funds.

As you may be aware, Sensex & Nifty 50 comprise India's biggest companies.

So, by investing in passive funds you shall get exposure to the stocks which are part of the index.

The views expressed here constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. The data/information/opinions are meant for general reading purposes only and are not meant to serve as a professional guide/investment advice for the readers. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. An investor education and awareness initiative by Mirae Asset Mutual Fund. All Mutual Fund investors have to go through a one-time KYC (Know Your Customer) process. Investors should deal only with Registered Mutual Funds (RMF). For further information on KYC, RMFs and procedure to lodge a complaint in case of any grievance, you may refer the Knowledge Center section available on the website of Mirae Asset Mutual Fund.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.