All of us are in pursuit of wealth in some way or the other We seek to generate income to meet our basic needs as well as to fulfil bigger financial goals.So for Thar We will Know What is Mutual funds?
When it comes to wealth creation, the real killer is Inflation the rise in the price of goods and services Simply put, our savings need to grow at the rate of inflation so that one year later we can still afford the same things we do today And if we are looking at gradually improving our lifestyles or any other financial aspirations our money needs to grow at a higher rate than inflation.
This is possible only when your money is invested YES! Put your money to work! Another thing you can do is bookmark to this website for tips on how to be a wise investor Follow us for updates.
Now let’s discuss a few interesting investment avenues available for prospective investors Bank Deposits are considered safe as they generate fixed returns, but the returns are low and insufficient to keep up with inflation. Gold is quite popular in India But, as an investment coins and bullions make a better choice than jewellery Gold acts as a hedge against inflation, but the prices are unpredictable.
Real estate was once considered a safe investment option High initial investment and very low liquidity are two major reasons why real estate investment is not for everyone As for the stock markets, well they present opportunities to make good returns but are considered very risky Unless you are a stock market wizard, it’s difficult to know which stocks to buy or sell and when to do so It’s like a tightrope walk at all times, as markets are prone to volatility due to various external factors.
What is Mutual Funds?
What Is Mutual funds? Mutual funds solve all these problems for you Mutual Fund collects money from investors and invests them on their behalf in stocks, bonds, money market instruments and more They are managed by professional fund managers who constantly track the markets and know when to buy or sell stocks of companies they’ve picked based on research Because of this mutual funds can deliver inflation beating returns and help investors create wealth over long-term.
Mutual funds let you diversify your investment across sectors & company size based on your investment horizon risk appetite thereby reducing risk Mutual funds are also extremely flexible as you can start by investing as low as Rs.500 on the click of a button These benefits make Mutual funds the best alternative for investors looking to create wealth and fulfil his or her financial dreams in the long-term .
So all you need to do is pick the right fund to invest based on your goal, investment horizon risk appetite and watch your money grow In case of any queries, consult your financial advisor before investing If you have any doubts or questions, mention them in the comments below Subscribe to our channel for all your financial queries Choose wisely. Invest well Mutual fund investments are subject to market risks read all scheme related documents carefull.