Mutual Funds for Financial Growth
Outlook Money|October 2024
Mutual funds allow you to invest in small amounts and seize the compounding growth, and experts help tackle volatility and asset allocation, making them a potent tool to create wealth.
NISHA SHARMA & BIRENDRA SHARMA
Mutual Funds for Financial Growth

The benefits from stock investments-an instrument known for boosting personal wealth markedly over a longer period-has been tasted by just a small section of society. Restricted information along with the need for substantial capital is to be blamed. This trend, however, is seen to be shifting in recent years with the growing prominence of domestic mutual funds.

Over the past two decades, mutual funds, once a minor player at the beginning of the century, have become key to institutional investors. As of June 2024, the total portfolio value of domestic mutual funds in BSE 200 stocks (the most liquid investment universe in the Indian market) was $383 billion, compared to just $8 billion in 2004. This remarkable increase has attracted new investors to mutual funds, supporting their wealth creation journey and helping them achieve their financial goals.

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