Why to invest in Mutual Funds?
Mutual Funds are subject to market risks, read the offer documents carefully before investing. How many times a day do we read this? Only if we knew that it actually helps with securing your life. A little bit will go for a long way.
Savings accounts these days don’t give you the interest that you actually are looking for. With the interest rates further falling to rock bottom levels for fixed deposits it becomes harder for you to fulfil the dream of buying that house or buying that car or even plan your retirement.
The magic of Mutual Funds is that unlike fixed deposits you can add money bit by bit, like the old saying “buundh buundh se sagar ban ta hai”, it’s a collection of drops of water that make the ocean. Now the new Mutual Funds don’t have a locking period as well and the investment has gone down to as low as 500 Rupees. What’s your excuse?
A little research is required to invest in the right Mutual fund, to give you a fair idea on how much you make in a Systematic Investment Plan (SIP) shows in the interest earned. Fixed Deposits have an interest of 7% on an average however, SIPs have an average of 9% – 13% per annum. Don’t worry your money is in capable hands of Investment Managers the banks employee who have years of expertise in the stock market.
I am not saying the Fixed Deposit is a bad thing, absolutely not. What I am saying is don’t keep all your eggs in one basket. Spread your life’s savings into different investment and savings plans and you will one day be satisfied that you made the right and smart choice of going that extra mile by making that little extra money.
The sooner you start the better!