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Why mutual funds score over several other investment avenues
While some view MFs with disdain as products meant for the masses, they have clearly proven themselves across the board as a diversified, well-managed offering.
Investors behave differently when it comes to their finances. Some approach investments like a task that needs to be done. They have limited knowledge and hence take help from friends and colleagues before investing their money.
There are others who hate money and finances. They just go lock-step with what their friends/ colleagues do with their money.
Another set of investors are very interested in money, want to be hands-on, are always on the lookout for products that offer great returns and believe in timing the markets and maximising returns. These are the investors who watch business TV channels, follow finfluencers, read business papers, and look out for tips all around so that they can invest where they can maximise their return. These people would invest in stocks and keep churning portfolios based on market cycles, news flow, what they hear and read, etc.
But this requires a lot of time and energy. And the results are not always pretty… which brings us to something that is pretty simple when it comes to investments – mutual funds.
Mutual funds are on everybody’s lips, thanks to the Mutual Fund Sahi hai campaign. The investors have taken to MFs, and the assets under advice have gone up manifold. However, there are several misconceptions that still linger.
