“Mutual Funds Sahi Hai” Why Should I Trust This Saying?
You must have heard this tagline many times on television, radio, or may have seen the advertisement in the newspaper, billboards, posters, etc. But, do you know that how much is it worth to say “Mutual Funds Sahi Hai” for you?
If you are an existing investor, then you must be knowing various excellent benefits of investing in mutual funds. However, you may be unaware about the amazing thrills of profits in mutual fund investments if you have never stepped into this world.
The Association of Mutual Funds in India (AMFI) has started a campaign to spread the awareness about the investments in MF among the people. And, it laid good impact as many new registrations have been enrolled into MF investments after the successful run of this campaign. Today, we will talk about credibility of this tagline and let you understand the actual scenario that whether it really worth or not.
Mutual Funds Sahi Hai - Let’s Dive Into the Facts
Creating wealth remains the dream and objective of every individual, and they keep searching the best way out to attain their goals efficiently. Mostly everyone has heard about the share market but least know how to get indulged in it and earn profits by investing. The mutual fund is a source which allows such individuals to let their money float into the share market and draw returns for them. In simple words, it helps the uninformed investors to create wealth by indirectly investing in the share market through the method of mutual funds.
Do They Assure Returns?
Several novice ask this common question that how risky are mutual fund investments as they indirectly invest in the share market. If you too have any such doubt, then read below to understand the concept of mutual fund investments:
Mutual funds are classified into various categories out of which the three major ones are Equity, Debt, and Hybrid. They deploy the capital as per their nature of investment and provide benefits to the investors. The investor has the option to make investment in any of the fund category as per the requirements and financial objectives. Equity funds are known for long-term benefits and high rewards. They invest in the shares and stocks of the various companies which help to achieve the long-term capital appreciation along with good returns. The debt category funds are basically ideal for the fulfillment of short-term financial objectives. They are less risky than the equities as they invest in the debt instruments like bonds, govt. papers, securities, etc. The hybrid category helps the investor to attain a balance between the risk and rewards by allocating the capital investments into the various equities and debts in a certain proportion. They are known as balanced mutual funds and ideal for the newly entered investor. Moreover, they serve a mixture of value and growth to maintain stability in the portfolio. Therefore, you have the option to invest as per your risk appetite and financial goals, and it helps to reduce the chances of wrong selection.
What If I don’t Even Know the ABCD of Investments?
You can still create wealth for your future financial needs even if you don’t know anything about the share market and mutual fund investments. There are Fund Managers who manage the movements of the schemes in which you invest your money and fetch the best returns for you. In short, you do not need to worry about the strategy of investing in the share market as the fund managers do the same on your behalf. All you need to do is to choose the most suitable scheme as per your monetary goals and invest; the rest will be taken care of by the fund manager. There are investment advisors available who help the investors who are less informed. So, in case you feel you are not able to choose the best one, you can consult the experts for the best advice.
Asset Management Companies (AMCs): The Mediators
There are several entities which are known as fund houses or AMCs acting in between the mutual fund investors and the share market investments. The individuals who can’t jump directly into the share market, these companies act as a mediator and help them to deploy their money indirectly into various shares. And this is finally how the mutual funds come to light. The fund houses help the investors to reap the maximum possible benefits on their investments.
Therefore, all the points mentioned above supports the sayings “Mutual Funds Sahi Hai” as they prove that how MF reduces the risks of investments and help the investors to attain their financial goals efficiently.
In the bottom line, it can be concluded that the investors who don’t have the adequate knowledge of various fundamentals of investment world should choose the way of mutual funds to travel toward the achievement of their financial goals. To add up more ease and efficiency in the entire process, you must get associated with us at MySIPonline because we are one of the fastest growing online investment service providers and helping our clients to reach the state of their financial well-being in a simplified manner.
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