I was watching a podcast where 3 guests from the finance field came up and they were discussing about the begineer investment. Everyone talked about how the FD is bad, real estate is bad, Crypto is bad and only mutual fund or direct stocks are the better option. I think they are into mutual fund industry and that's why they are promoting it but I feel whetever investment you are comfortable with you should do as simple as that.
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Now a lot of people are not comfortable with stock market and for them government scheme like PPF, FD, Post Office Imvestment are better option. If they are comfortable with it, great they should do that investment only. Now if we say that FD, or these government schemes doesn't beat the inflation, leave it. Those guys doesn't want to be filthy rich, for them they can earn and save and savings is fine with FD too or government bonds. Not everyone wants to retire early.
Next if you are comfortable with crypto as well as direct stocks, no need to panic, invest in that only. We all invests in that seeing the risk only, and that's why we call it diversification. The more diversified our portfolio will be the more it will be better. Since I am comfortable with Bitcoin and that's why most of my holdings are in Bitcoin, I am comfortable with Index funds and that's why most of the holdings are in Index fund.
The thing is we have to keep ow about the products which we are investing in and after that we should invest knowing the risks. You can tell anyone yo invest in mutual fund but what if the market goes down, these guys will panic and sell and thus they will be in loss. Until and unless someone knows the risk they should not invest in any assets. And that's why knowing about the assets and their risk to get comfortable with is the way to go.
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