Why Invest in Mutual Funds? When considering investing, one should first create an emergency fund that will take care of your expenses for at least six months. Then you need to have health and life insurance before you start your first investment. Usually, most of us invest whatever is surplus after spending. Instead, we should first try to decide on our investment amount and then spend whatever is left. This will help us limit their discretionary spending. It works for those who have just started earning or want to start their investment journey. To start your investment, you should analyze your goals i.e. long-term and short-term goals. The time horizon of your short-term goals can be from one week to one year while long-term goals can be 5 or 10 or 20 years. What is a Mutual Fund? Mutual fund is an investment medium where multiple investors pool their money to earn a return on their capital over a period. This corpus of funds is managed by an investment professiona