MYTHS ABOUT MUTUAL FUNDING DISCOVERED! GET RID OF OBSTACLES TO MAKEING MONEY, HERE'S HOW
Are you new to the world of investing? You may find yourself scratching your head over whether or not to invest in mutual funds. If you haven't planned on investing in mutual funds, you're probably a victim of mutual fund investment myths.
A mutual fund is without a doubt one of the best investment tools available to investors for building wealth. According to a recent report by the mutual fund regulator, the Association of Mutual Funds in India (AMFI), only 1.5 percent of the Indian population has chosen to invest in mutual funds.
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This could be due to the fact that Indians are known to be conservative investors who put a large portion of their money into low-risk investments such as bank fixed deposits (FD), gold, and so on. Mutual funds are typically dismissed by these investors as risky investments with no guaranteed returns. However, these mythologies frequently deprive investors of the opportunity to create wealth.This article aims to debunk the following common mutual fund myths among investors:
Myth number 1. Lower NAVs result in better investments
In mutual fund investing, NAV stands for Net Asset Value. A fund's net asset value (NAV) is the net value of its market holdings. It represents the fundamental value of a specific fund on a given day. Instead, look for a mutual fund scheme's NAV deviation over a specific time period.
Myth number 2. Investing in top-rated funds yields substantial returns
Mutual fund investments are subject to market risk, and returns are determined by the performance of the underlying stock. Mutual fund markets are notoriously volatile. This means that the placement of your schemes may or may not change depending on the market situation.As a result, the top-ranked mutual funds may be unable to maintain their position in the future, and vice versa.
Myth number 3.During a market downturn, halt SIP investments
Just as you must finish your entire course of medication to be completely cured, you must continue your SIP investment until your financial goals are met. When the markets crash, do not pause your SIP investment because it is a long-term investment plan.A SIP investor is advised to remain invested regardless of market trends.
With the rising demand for your lifestyle, you should put in the necessary effort to secure your future. Investing in mutual funds allows an investor to achieve their goals. So be prudent and begin investing today.
Myth number 4. Investing in top-rated funds yields substantial returns
Mutual fund investments are subject to market risk, and returns are determined by the performance of the underlying stock.Mutual fund markets are notoriously volatile. This means that the placement of your schemes may or may not change depending on the market situation. As a result, the top-ranked mutual funds may be unable to maintain their position in the future, and vice versa.
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