What is a mutual fund?
A mutual fund is a pool of money to meet a certain investment objective. This pool of money is directed by the fund manager who chooses how to invest the money.
A skilled fund managed would often make returns better than the market. This translates to wealth creation for the investor.
Just for illustration purposes, Rs 10,000 per month in an index would have grown to a portfolio of Rs 27 lakhs in 10 years. A skilled fund manager would have grown more.
Similarly, a mutual fund may also be chosen to invest as an alternative to a fixed deposit with a bank. You get a better return in a tax-efficient way.
The mutual fund industry is closely monitored by the government. Now, a mutual fund is the first level of choice for investors.
When you are starting, a mutual fund should be your first choice of investment vehicle. It is safe, regulated, liquid, and above all managed by professionals.
Do not waste time managing funds on your own. Start small with a mutual fund and see it grow.
Mutual Funds sahi hai