Mutual Funds - An Ideal Investment Option

Gone are the days when people relied solely on their own savings for security in the future. In today's world, savings may not be enough to ensure financial security. The idle money deposited in your savings bank account or locker may also not serve the purpose. That is for two reasons - one, idle money in your bank account is a loss of opportunity as it can earn more money, and secondly, it does not have the power to overcome inflation.

It is clear from the foregoing that earning a living is not enough. It can help you if you make your money work hard for you. And how do you do that? BY INVESTING.

Investing allocates money in different asset classes with the intention of capital appreciation and earning better returns in the long run.

Types of Investments

• Stocks
• Bonds
• Mutual Funds
• Bank Products
• Options
• Annuities
• Retirement
• Saving for Education
• Alternative and Complex Products
• Initial Coin Offerings and Cryptocurrencies
• Commodity Futures
• Security Futures
• Insurance
• ETFs

Why should people invest in Mutual Funds?

Mutual funds help investors diversify unsystematic risks by investing in a diversified portfolio of stocks across different sectors. Hence mutual fund risk is much lower than individual stocks. Smaller capital outlay: Investors will require a large capital outlay to build a diversified portfolio of stocks.

Why Mutual Funds are better than other investment options?

Mutual funds can hold many different securities, which makes them very attractive investment options. Among the reasons why an individual may choose to buy mutual funds instead of individual stocks are diversification, convenience, and lower costs.

Is investment in Mutual Funds safer than other avenues of investment?

Mutual funds are a safe investment if you understand them. Investors should not be worried about the short-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.

Mutual funds are largely a safe investment. It is seen as being a good way for investors to diversify with minimal risk. Mutual funds are a safe investment if you understand them. Investors should not be worried about theshort-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.

Before you invest, it is advisable to do your research and read more about mutual funds. There are several types of mutual funds suitable for different kinds of investors such as aggressive, moderate and conservative.

Are Mutual Funds Safe?

You can ascertain the safety of an investment in two ways:

• Security in terms of the company or institution where you have the investment running away with your money.

• Safety in terms of capital protection and fixed returns.

While no investment is 100% risk-free, at least in this case you can be assured that No one will run away with your money. If you are worried that mutual funds are a type offlight-by-night scheme, then rest assured that mutual funds are completely safe. You will not wake up one morning to find out that the mutual fund you have invested with has vanished along with your money. That is never going to happen! Why do I say this?

As mutual fund companies are regulated and supervised by regulatory agencies such as the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI), no fund house can abscond with the investor's money. The license to run a mutual fund house is given after due diligence in a similar way as banks get the banking license. In short, a mutual fund house is as safe as a bank.

So why wait? Start Investing today!