In our life all of us save or invest for our future. Many use to save their savings at the bank in saving accounts for merely 6-7% interest annually while some invest in government bonds, policies, fixed deposits (rate of interest is higher than saving accounts) or other securities.
But persons who believe that risk taking are the key of money making, invest in stocks. Yes stocks in average give the higher return in comparison to other investments. But one fact is also that everybody doesn’t have the same time flexibility as well as right concept of the market. So a person who lacks one or both the factors may not invest in stocks! No it’s not like that, thanks to mutual funds. These investment vehicles don’t demand that you have a deep understanding of financial matters; they don’t even demand oodles of your time. The mantra of mutual fund is ‘strength works’. They collect money from a large group of investors, pool it together, and invest it in various securities, in line with their objective. They are an alternative to invest directly.
Thus a mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them.
Mutual fund offer several features that make a powerful and convenient wealth creation box worthy of your consideration. These are Small Investments they offer, Offer of Diversified portfolio, Professional management of our investment, Sharing or managing Liquidity, Tax saving or Tax break schemes etc.
AMFI, The Association of Mutual Funds in India is the association which look after the interest of both unit holders in funds as well promoting the interests of mutual funds: WEBSITE OF AMFI
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