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Indian Mutual Fund Trend and Possibilities

Many investor wants to invest but don’t know how to do it. Sometime, we don’t posses knowledge set but maintain huge bank balance. Mutual fund is one of the way wherein investor don’t  need to worry about the portfolio or investment and instead of that fund manager to invest investor money and investor are allowed to invest more as top up or reduce the exposure or can switch from one fund to another fund
Top reasons to invest in mutual fund

1.     Good for  Diversification

Mutual fund offer instant flexibility to investor to own multiple stocks through Growth or secured or balanced fund based on their appetite. The growth of equity market gets visible through Net Assets Value which is also known as NAV. Investor gets the number of unit based on the invested amount divided by the NAV

2.   Good as Professionally managed

Many don’t posses knowledge whereas mutual fund managers and analysts invest lots of time every day and night and  dedicating their professional skills in researching and analysing current and potential holdings for their mutual fund.

3.      Low Cost

The rules and regulations are governed and controlled by the SEBI (Securities and Exchange Board of India) and all the expense and cost are fixed on the maximum side by the SEBI which has to followed by each and every AMC in India

4. Small Investment is possible

Many mutual funds allow investor to invest based on their appetite. It also allow investor to invest more through top ups. Some of the mutual fund also allow exits which is nothing but ready liquidity.

5.   Safe Investment
The strategy of investment in mutual fund is mostly low  risk investment.

Why investment in Mutual Fund is not so much popular

1.      Investors are not used to open-ended investment products. When we tell them that they can begin with an investment of Rs 5,000 in a fund, keep adding amounts as per their convenience, and draw as needed, they do not believe this.

2.       Investors do not care much about unrealised return. We can go to town talking about how Rs 10,000 invested over 20 years became Rs 1.50 lakh. The truth is that very few actually invested this much money so many years ago.

3.      Many investors think that mutual funds invest in stock markets, and stock market means reckless speculation.

4.      Those who warm up to the idea of investing in mutual funds don't know which product to choose. 
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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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