Understanding Mutual Funds in India
In a simple manner, one can say that mutual funds are for those who have no time and/or knowledge to invest and create wealth and you need some professional person to handle on your behalf.
Let us take a simple example to understand it. Suppose you have Rs. 1 lac and want to invest in stock market. You don't know where to invest, how to find out the right valuation of the company, fundamentals, technical anlysis etc. Confused. So, you discussed the matter with your collegue and he suggested you to invest in some "XYZ" company. He claimed to have knowledge and some "internal" news. You trusted him and invested the whole Rs. 1 lac in that company.
After couple of days, that stock started coming down. Since you were confident on his advise, you just relaxed. And then after few days, the stock crashed like anything and you're in 50% loss. You could not gather force to book your lossed and stock slipped 30% further. Your friend is no where to help you and give you explanation.
So, at last, you booked all your losses and started blaming stock market, operators, big HNI, FII's etc. And after few days, your luck also.
Then, after 3 months, suddenly you saw newspaper and you were shocked to see the price of "XYZ" company at all time high. Infact, that company is now trading at the rate when you bought the shares. Your so-called friend also praised his knowledge. Again, you blamed your luck.
And finally, you decided that you'll never invest in stock exchange in any manner and will stick your investments with PPF, bank fixed depsoit, post office schemes, LIC insurance plans etc. And you'll pass this "information and lesson" to your children also in hereditary.
This is a real example of many Indians. They burn their fingers and then no looking back.
You've spend 20-25 years of life to get basic and professional education to earn money. Can't you spend few minutes to understand the basics of mutual funds?
Types of Mutual Funds
Checking Latest NAV of Mutual Funds
You can check the latest NAV of Indian Mutual Funds from the official websites of the AMC's. Some websites also displays NAV of all the companies. One such website is http://www.investmentkit.com/mutualfunds/nav.php , wherein you can see the latest NAV of all mutual fund schemes of India. This page is updated everyday.https://www.investmentkit.com/articles/2012/10/understanding-mutual-funds-in-india/https://www.investmentkit.com/articles/wp-content/uploads/2011/12/understanding.jpghttps://www.investmentkit.com/articles/wp-content/uploads/2011/12/understanding-150x150.jpgMutual FundsAMC,equity funds,Example,knowledge,lac,Management,Mutual,mutual fund,mutual fund schemes,mutual funds,risk,sector,stock,stock market,time,XYZIn a simple manner, one can say that mutual funds are for those who have no time and/or knowledge to invest and create wealth and you need some professional person to handle on your behalf. ExampleLet us take a simple example to understand it. Suppose you have Rs. 1 lac...Admin[email protected]AdministratorInvestmentKit Articles
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