Are you a peter lynch or a warren buffett?

photo by thelastminute

Everyone might be familiar with mutual funds especially ELSS (Equity Linked Savings Scheme) coz that seems to be one of the favourites with salaried-class people. After all, it’s eligible for that deduction under Section 80C and plus has a potential to give you returns far better than traditional investment avenues such as Provident Fund (PF) and National Savings Certificate (NSC). However, investing in ELSS means a lock-in period of 3 years.

Consider this – you’ve already invested in ELSS and have some extra money that you wish to invest in stocks. You could be one who is a pro when it comes to investing directly in stocks. Or you could be someone who depends on friends / family for guidance. Then there are times when you really don’t have the time to track the stock market, more specifically, trying to figure out which are the stocks that you should ride your money on. In such a case, index funds are a good avenue to look at. Continue reading “Not Peter Lynch or a Warren Buffett? Try Index Funds” »