4 Replies to “why i have to choose Mutual fund?”

  1. When you buy into a mutual fund, you are buying shares of
    that fend. If the share price goes up you make money, but if
    it goes down you can lose money. So there is some risk.
    In a fixed deposit, your money is safe, but interest rates at
    this time are very low and not worth it. The fund manager does
    all the picking of stocks or bonds and in a balanced fund has
    some of both. This kind of fund may be best for you since
    there is less risk involved.

  2. Mutual Fund is low risk strategy of equity investment. It is not 100% risk free as past performances and experience of mutual fund investors tells the story. Your investment is being managed by team of professionals, who are certainly having better market experience and planned strategy of capital investment. Fixed deposit will provide you sure return with almost very low to say almost no risk. But you will not have advantage of earning higher than what was offered as FD interest rate. Thus earning limitation is one constrain over there. Fund investment provides you advantage of stock market investment participation. But guaranteed return is not possible for every MF scheme to offer and in case market conditions get worst you may see your NAV dropping which may even give you negative return in case you want to withdraw or redeem your units in bad equity stock market conditions. If you ask what is investment for best return? then certainly stock market is one because it provides you some hedging against inflation. Your investment in good shares appreciate faster and may give you better return

  3. Mutual Fund is systematic investment plan U get benefit in long term if u start a sip of 1000rs a month and continue for atleast 7 years. ANd if the market falls dont withdrw bcoz thats the time ur fund manager will be able to buy more shares for u. HAVE a mix of eqoity and balanced funds in ur portfolio. u CAN go for ICICI PRU FOCUSSED BLUE CHIP HDFC TOP2000 IDFC EQUITY HDFC PRUDENCE ETC

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