Question

Why the best performing mutual funds fail to perform in future in indian mutual funds?

Answer 1

People do invest in mutual funds in India, although the number is not what it should be, and this is because of the lack of knowledge or awareness among them. They usually think that mutual fund investments are the same as investing in the stock market and the risk associated is also as high as that of the equity market, which is totally a myth.

There are various other myths associated with the mutual funds that restrict people from making mutual fund investments in India. Here, I will bring them to light, and will help all my readers to get a clear picture of this smart investment method.

1. Lack of knowledge of the platforms from where they can make and track their mutual fund investments.

2. People are not aware of the low-risk investment options which include liquid funds, low-duration funds, debt funds, large-cap mutual funds in case of equity funds, etc) provided by the mutual fund AMCs, through which they can gain around 7% or above yearly returns whilst taking minimal risk.

3. They think that the process of registering for mutual fund investments is similar to that of FDs, RDs, etc., and will take a lot of time and effort to get completed.

4. Several traditional investors believe that mutual fund investments require a lot of capital, so only the rich can invest in them.

If you are among the people who think the same way, then it’s time that you change your mindset. Today, you can start your investment in mutual funds for as low as Rs 500, and there are schemes available for different risk appetite, investment horizon, and objectives.

For more information, browse through the internet and search for a easy-to-use online mutual fund platform where you can accumulate all the knowledge. On a final note, I, from my experience of around 10 years in this industry, can tell that mutual funds, especially SIP investment is the best investment option available now!

Mark brainliest...