Indian’s are a good savers, but not a good Investors

Mutual funds are probably the ‘most misunderstood’ of all products. And it is indeed a tragic that due to ignorance a huge crowd is deprived of the immense benefit which mutual fund brings to the table.

• Returns wise mutual funds are second to none

• In terms of liquidity it almost matches to a bank account

• It is top rated in terms of tax efficiency

• The risk reward of mutual fund is perhaps the best.

• Scheme of mutual funds are for shortest of the short term needs to the longest of the long-term requirement it caters to all.

Thing to know about mutual funds:

1. Mutual fund is not an investment strictly in the direct sense. It is a trust that  collects  small amount from a large  number of investors and creates  a pool of money called mutual fund schemes  which is then invested  under the guidance  of  an expert  fund  manager.
2. Over the decades SEBI (Securities exchange board of India) and AMFI Association of mutual funds in India, admirably monitored all schemes and they are making it among the best in the world.
3. This pool of money is invested in shares or debt (Fixed income securities) or gold (ETF’S). Mutual fund is not a single product. Rather mutual funds are a whole bouquet of product’s from which we can choose depending on our needs, we can buy equity mutual funds, debt mutual funds, Gold mutual funds and Hybrid Funds.

So it is always advisable to the Investments in to more transferant, Liquid & Tax efficient Schemes through mutual funds.