It’s said that one shouldn’t measure the depth of water with both his/her feet. Similarly, enthused by any market rally, a first-time investor shouldn’t take a plunge and invest heavily in the pure equity segment of Mutual Funds (MFs), investment in which is subject to market risks.
Novice investors generally start equity investments at a high market, when the existing investors have already earned a double-digit compound annual growth rate (CAGR), oblivious of the fact that the experienced investors had invested at a lower market.
So, while entering the equity market for the first time, investors should take a cautious approach by investing in relatively less-risky funds and get accustomed to the market fluctuations.
A first-time investor
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