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How lazy investors can earn quick bucks

Last updated on: June 14, 2006 20:01 IST

Mutual funds give readymade investment options for people who don't want to take too much trouble over the details.

Investment Consultant Sanjay Matai agrees as he tells moneycontrol, "Mutual funds is the best option available to such investors wanting to invest in equities. Apart from being very flexible and convenient, it offers other key benefits such as professional management, diversification and variety in terms of schemes."

"An ideal investment strategy for a couch potato investor would be to invest in index funds, as they allow a well-balanced, low cost and well-diversified portfolio", says Investment Advisor Hemant Rustagi.

"If one wants to track the fortune of bluechip stocks, one can invest in an index fund that tracks BSE Sensex. Likewise, one can look at index funds tracking other indices. The key, however, is to have a close look at the 'tracking error', as index funds cost an investor less, compared with an actively managed equity fund," he adds.

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