Why mutual funds are going down in India?
Sign Up to our stock-market-based Q&A Platform to ask questions, answer people’s questions, and connect with other people.
Login to IndianStox.com (Q&A Engine) to ask questions, answer people's questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Why mutual funds are going down in India?
Reasons Behind Why Indians Won’t Invest in Mutual Funds
Indian Express in one of its surveys on mutual funds found that it is the second most preferred investment in India.
The survey connected 1675 respondents in India covering the class interval age group 22 – 45 years and it was confirmed that 54% of the surveyed people voted for it. This raises the question, ‘Why don’t Indians invest in mutual funds?’
Still, there is a growing concern among financial experts about the non-investment in mutual funds although there are many ways to cushion your investment at times of financial collapse.
Let us get into the types of mutual funds, and how better you can invest to generate more return.
Types of Investments in Mutual Funds:
In mutual funds, there are two types of investments, systematic investment plan, sip, and lump sum investment plan in which you will have to pay INR 5,000.00 and above.
You may think twice to make an investment lump sum but making a part payment of at least INR 500.00 every month shouldn’t be a big deal.
Therefore, you must come out of that illusion that investments in mutual funds are not a sip of your cup.
Mutual Funds are available in equity funds, and debt funds and you can invest your desired ratio that helps you in balancing your risk options.
In equity funds, a major portion of the fund value is invested in the equities thus generating more returns. In addition, these returns can help your securities beat the rising inflation.
As your investments are invested in the company stocks by choosing a different portfolio the chances of losing much money can be avoided.
MF Debt Fund Investment Reduces Risk Factors:
You can take advantage of mutual funds that invest in debt funds exclusively and obtain a minimal return.
Your investment shall be put in debt instruments like securities, debentures, corporate FDs, or bonds.
But they will reap lower returns and to make an optimal profit in mutual funds, the best option is to put in the hybrid funds segment of mutual funds.
Hybrid Funds: Generates Balanced Returns
Hybrid mutual funds are yet another type of mutual fund that invests in a mix of equity and debt instruments, thus balancing the risk.
In hybrid funds, the fund manager splits your investment into two segments, equity and debt investment. This can help you in balancing your returns in high-risk stock market environments.
Note: The mutual funds are subjected to market risks therefore you may not get the expected return at times of adversaries faced in the stock markets.
Still, you can expect an annual return of at least 15% to 20% every year as your guaranteed returns and it is defined over the historic statistics since the inception of the mutual funds in the financial markets.
Why Indians Don’t Invest in Mutual Funds?
Indian Express in one of its surveys on mutual funds found that it is the second most preferred investment in India. The survey connected 1675 respondents in India covering the class interval age group 22 – 45 years and it was confirmed that 54% of the surveyed people voted for it. This raises a question, ‘why don’t Indians invest in mutual funds?’
Still, there is a growing concern by the financial experts about the non-investment in mutual funds although there are many ways to cushion your investment at the times of financial collapse.
Let us get into the types of mutual funds, and how better you can make investment to generate more return.
Types of Investments in Mutual Funds:
In mutual funds, there are two types of investments, systematic investment plan, sip, and lump sum investment plan in which you will have to pay at INR 5,000.00 and above.
You may think twice to make an investment lump sum but making a part payment of at least INR 500.00 every month shouldn’t be a big deal. Therefore, you must come out of that illusion that investments in mutual funds are not a sip of your cup.
Mutual Funds are available in equity funds, and debt funds and you can make an investment in your desired ratio that helps you in balancing your risk options.
In equity funds a major portion of the fund value is invested in the equities thus generating more returns. In addition these returns can help your securities beat the rising inflation.
As your investments are invested in the company stocks by choosing a different portfolio the chances of losing much money can be avoided.
MF Debt Fund Investment Reduces Risk Factors:
You can take the advantage of mutual funds that invest in debt funds exclusively and obtain a minimal return. Your investment shall be put in debt instruments like securities, debentures, corporate FDs, or bonds. But they will reap lower returns and to make an optimal profit in mutual funds, the best option is to put in the hybrid funds segment of mutual funds.
Hybrid Funds : Generates Balanced Returns
Hybrid mutual funds are yet another type of mutual fund that invests in a mix of equity and debt instruments, thus balancing the risk.
In hybrid funds, the fund manager splits your investment into two segments, equity and debt investment. This can help you in balancing your returns in the high risk stock market environments.
Note:
The mutual funds are subjected to market risks therefore you may not get the expected return at times of adversaries faced in the stock markets.
Still, you can expect an annual return of at least 15% to 20% every year as your guaranteed returns and it is defined over the historic statistics since the inception of the mutual funds in the financial markets.