Read these 7 facts about mutual funds before investing

The present scenario is quite grim. Many people out there have confusions related to investing their hard-earned money.

For this blog post, we’re going to talk about the most misunderstood and overlooked but highly rewarding investment option of mutual funds.

Why should a hard-working individual such as you invest in mutual funds ????

Well, let’s look at 7 reasons why you should precisely do this.

 

1. Professional fund managers to manage the fund

Qualified people professionally manage a mutual fund. They ensure that your fund gets you the best returns. Hence, this is an apt choice for people who either have very little knowledge of investments or do not possess the time to calculate each risk and invest by themselves.

 

2. Affordability

If you wish to invest in equities directly, it can become quite difficult to accumulate a large sum of money for that stock. The option of mutual funds makes it easier to in them right away with smaller denominations.

3. Option of liquidity

Compared to the other asset classes, the lock-in period for mutual funds is very low. Nowadays, it is even easier to take out money invested in mutual funds either digitally or through a card.

 

4. Ease of Process of investing

It is fairly easy to start your investment into a mutual fund, all it takes is a bank account and your PAN card. Here’s a process flow to explain this.

However, India suffers from a lack of Mutual Fund penetration. According to the Equitymaster website, India has a 7% share of Assets under Management (AUM) of mutual funds to GDP.

In this regard, Reliance Mutual Fund has made a courageous attempt. Through the initiative of Mutual Fund Day and Fund for a friend, they are aiming to bridge the gap in the mutual fund penetration of India.

Basically, Mutual Fund Day is held on the 7th of every month wherein people from different parts of the city are brought under one roof to be educated about the benefits of investing in mutual funds and removing any stigma, fear or misconceptions associated with it.

The Fund for a friend initiative is a digital campaign run on Facebook wherein you can answer some questions about you and get a result which identifies your risk taking appetite and also recommends mutual funds just for you. You have the choice to tag your friends and relatives so that they can play this small quiz. The app then understands their risk appetite and they get suggestions which are tailor-made.

These industry redefining initiatives have already had 50,000+ activation events. The reach has been phenomenal. With just 25000-30000 SIP applications in a day, the number has swelled to 90000 applications as a result of this activity.

The time has come to embrace Mutual Funds as a member of your investment family.

Embrace it to achieve your life goals.

Plan, invest and fulfill those long cherished dreams.