MYTHS & FACTS
Investors India|October 2021
BNP Paribhas Mutual Fund
MYTHS & FACTS

Traditionally, we have always understood the importance of savings and investment. With a household savings rate of 30%1, Indians have historically shown a proclivity towards savings. Despite this, mutual fund penetration in the country is on the lower side and stands at 11% of GDP2. While there can be myriad factors that contribute to low penetration of mutual funds in the country, one of the primary ones is a lack of understanding about mutual funds. Below, we dispel some of the myths associated with mutual funds.

Myth 1 - Mutual Funds are only for the long-term

It is a myth that mutual fund investments are only for long-term investors. There are different types of categories viz., equity, debt, hybrid, Exchange Traded Funds (ETFs), Fund of Funds (FOFs), etc. that offer the investor a variety of schemes with different investment objective investing in instruments with different time horizons, risk profile and investment strategy. Debt mutual fund schemes allow investors to invest for as minimum as a day whereas equity mutual schemes are to be considered for different long term investment horizon. There are mutual fund schemes that invest in short-term instruments and then there are schemes that invest in equities which are considered ideal for long-term horizon. Between these two, investors have a host of options to choose from, ranging from overnight to 10-years plus.

Myth 2 - You require a large sum of money to invest in mutual funds

هذه القصة مأخوذة من طبعة October 2021 من Investors India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة October 2021 من Investors India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من INVESTORS INDIA مشاهدة الكل
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
Investors India

Thematic Fund Or Sectoral Fund, Which Fund Suits You?

A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.

time-read
2 mins  |
October 2024
Be Kind To Your Kidneys
Investors India

Be Kind To Your Kidneys

The kidney is a vital organ in our body which is four inches long and two and a half inches in width.

time-read
5 mins  |
October 2024
Have You Included A Passive Fund In Your Portfolio Yet?
Investors India

Have You Included A Passive Fund In Your Portfolio Yet?

The assets under management (AUM) of passive funds recently crossed the Rs. 10 lakh mark. While a significant portion of this money comes from institutional investors, such as the Employees Provident Fund Organisation (EPFO), these funds are also gaining popularity among retail investors.

time-read
1 min  |
October 2024
Mutual Fund
Investors India

Mutual Fund

1. SEBI allows mutual funds to buy and sell credit default swaps (CDS)

time-read
4 mins  |
October 2024
Insurance News
Investors India

Insurance News

1. The finance minister has launched a new NPS scheme named NPS Vatsalya

time-read
1 min  |
October 2024
ASK THE EXPERT
Investors India

ASK THE EXPERT

Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.

time-read
3 mins  |
October 2024
Market Mystery: Some Important Investing Lessons from Fund Managers Themselves
Investors India

Market Mystery: Some Important Investing Lessons from Fund Managers Themselves

Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees INR 3 lakh crore of assets under management.

time-read
6 mins  |
October 2024
How to make a cautious entry into equity funds during a bull market
Investors India

How to make a cautious entry into equity funds during a bull market

The number of mutual fund folios has been rising, with flows via the systematic investment plan (SIP) route reaching new highs.

time-read
4 mins  |
October 2024
All that you need to know to kickstart your retirement planning process
Investors India

All that you need to know to kickstart your retirement planning process

We all enjoy planning for the future. It’s a good idea to plan ahead of time for anything, from the day’s activities to a vacation.

time-read
5 mins  |
October 2024
5 Steps To Achieve Your Financial Goals
Investors India

5 Steps To Achieve Your Financial Goals

From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.

time-read
3 mins  |
September 2024