I want to share a very important and useful information about one of our favourite subjects – Money! Ever since I started earning, my older brother who in an expert in finance had suggested me to invest my money and not let it remain idle in the savings account. Whenever he used to bring the subject of shares and investment, I procrastinated it, though I knew it is important. But, now, I totally realize the mistake and I’m guilty of the delay! Lately, I have been reading a lot about Mutual Funds and its benefits.
Let us have an overview of what mutual funds are and, why are they so important!
What are Mutual Funds?
Mutual Fund is nothing but a pool of money from multiple investors (individuals) who wish to invest their money and let it grow. It is just handling your money to an expert so as to have it grow. It is a lot easier than buying and selling individual stocks and bonds. Here, individuals need not do all the work but the company does! The company that manages the Mutual Funds is called an Asset Management Company (AMC). There are multiple mutual fund schemes according to the needs and requirements of the investors.
Why should we invest in Mutual Funds?
Most of the people open a Fixed Deposit account or invest in Gold. These are usually the traditional methods followed by people. As most of us are unsure of the share market, its working, we conveniently choose to stay away from it.
Yes, there is also a fear of risks involved to some extent. The most popular line that we often hear after the Mutual Fund Advertisements is “Mutual Funds are subject to market risks, please read the offer document carefully before investing.” My brother explained the scenario with a simple example. He said “ Crossing the road is riskier than investing in mutual funds as while crossing the road, we face the risk of life! Any time any incident can occur without prior notice, but we still do cross the road!
Mutual Fund Day – 7th of Every Month!
Reliance Mutual Funds (RMF) in association with CNBC TV 18 have initiated Mutual Fund Day on 7th of Every Month to create an awareness about the benefits of Mutual Funds.
The sole objective of this initiative is to help the investors understand and reap the benefits of the various schemes made available to them. India is a nation of savers! The technology has eased the process even further and now everything just happens seamlessly in a few clicks. Mutual Fund Day that is celebrated on the 7th of every month is a day for investors and a reminder to the customers about the importance of investing their hard earned money and not letting it remain idle in the banks.
I tried my best enlightening all you readers about the subject and it’s importance. If you have any queries do let me know in the comments below! I truly hope this was useful to you! 🙂
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