[Secret Revealed] Learn to Grow Money While You Sleep & Retire Early: Begin Investing in Mutual Funds Starting Today
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| Begin Investing in Mutual Funds Starting Today |
MUTUAL FUNDS are for Everyone
Even though not everyone is aware or confident about investing in Mutual Funds, the fact is that Mutual Funds are for everyone to benefit from.
If you have the time on your side then Mutual Funds allows you to become rich Slow and Steady.
I am blogging about Mutual Funds not because I am a Financial Advisor and I want to sell you some Mutual Funds. No Way!
I am blogging about Mutual Funds because I am passionate about the subject of Money. I want to understand how money works and how can I use money as leverage to achieve my life’s goals.
I myself invest in few Mutual Funds and they have been doing pretty well over the years.
My Purpose to write this blog on Mutual Fund Investing is to get you excited about making your money work for you and in the process of creating wealth.
So, if you are still with me, let’s get started.
What are MUTUAL FUNDS?
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| Learn to Grow Money While You Sleep. Begin Investing in Mutual Funds Starting Today |
A Mutual fund is a collection of funds in the form of cash from a large number of people who are looking forward to investing their money.
Before the company starts promoting its Mutual Fund they design how the funds collected will be invested in the market to earn profits.
The investors then look at the offer and decide to put their money in the particular Mutual Fund.
Once the money is collected, the fund is invested across different asset classes, based on a common objective.
There is a designated Fund Manager of the Funds collected. He or she is an experienced professional who has a track record of managing a large amount of money and providing profits to investors.
The Benefits of MUTUAL FUNDS
I am not saying that Mutual Funds come with zero risks. Yet it is far less risky than directly investing in Share Market or Stock Market as it is popularly known.
Let us see what makes Mutual Funds less risky that Share market.
The Fund is Managed by Professionals
As I mentioned above, the fund is managed by full-time professionals and experienced Fund Managers. They have a dedicated research team that provides support in the form of real-time access to crucial market information.
Sophisticated software is used to analyze the market data and come out with the right decisions.
The risk here can be that not all decisions taken by the Fund Manager will be right. He can also commit a mistake.
But there is no point to worry if you have invested with the Right Company.
The Fund Manager is playing for the long term. In long term, the risk gets minimized and the investor is able to earn a good profit from the market.
Diversification is the Secret to Avoid Risk
What makes Mutual Funds less risky is that they invest the funds across an array of asset classes. The investment can be in equity, debt, and even gold. This allows you as an individual also to diversify your portfolio.
The benefit of diversification is that when a company in one industry is not performing well, the other industries can be doing well. So the loss is minimized.
For example, let’s say the Mutual Fund in which you have invested has invested the funds in Textile and Automobile Industries.
Now due to market fluctuations, company, an XYZ Company in the textile industry is not performing well. But there is a boost in the Automobile Industry and there the Mutual Fund earns good profit. This way the Mutual Fund is still able to make money, just because it had diversified its funds.
So, a Mutual Fund company looking to earn a profit will never put all its eggs in one single basket.
Mutual Funds are Convenient and Flexible
These benefits of being convenient and flexible are for the investor.
Let us see how.
Say you don’t have enough money to invest in a Mutual Fund at once. No problem. You can start what is known as a SIP or a Systematic Investment Plan. You can choose to invest a minimum of Rupees One Thousand per month for as many years as you want.
So you see, having less money is not a problem with Mutual Funds. This gives the opportunity to almost everyone to participate and become rich.
The only thing that is required is to have a burning desire to become rich.
After a couple of years, say you are in an urgent need of some cash. You can fall back on your Mutual Funds Investment. You have the convenience to withdraw from your Mutual Fund account either partially or fully depending on your needs. All you have to do is sell the units that had been allocated to you based on the amount you invested each month.
The money will be directly transferred to your bank account from where SIP is deducted within five working days.
Transparent and Well Regulated
The Big Boss SEBI (The Securities and Exchange Board of India) is there to protect the rights of the investors. No Mutual Fund can afford to cheat its investors and play wrongly with their money. SEBI has got your back so just chill.
The rules and regulations are continuously reviewed and refined by SEBI exclusively to protect the investors. All companies inviting investments in Mutual Funds have to strictly abide by the rules set by SEBI.
Want to Invest More Money?
As an investor, you have access to large ticket options.
What this means is that some specific schemes allow you to invest in large ticket size investment options. For example, you can invest in Government Bonds and even International Stocks. This opportunity is not available to individual investors.
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Final Thoughts about Mutual Funds
We can conclude from the above discussion that
A Mutual Fund is a Professionally Managed Investment vehicle. It pools in money from a number of investors with a promise to invest in defined different securities to meet a common financial goal.
8 Absolutely Strong Reasonable Reasons You Need to Know to Rethink Starting Your Journey with Mutual Funds Right Now
It’s a good idea to summarize whatever we have discussed above that reveals to us that even starting with a small amount is a good idea to make our money work for us using Mutual Funds.
Here is the list of eight words you should consider that will help you take that decision to go ahead with Mutual Funds Investments today.
- Liquidity
- Cost Efficiency
- Convenience
- Diversification
- Professional management
- Affordability
- Transparency
- Tax Benefits
Ride your Investment Journey with Mutual Funds!
What is your opinion on Mutual Funds?
Do you invest in them?
What has been your experience?
Would you recommend investing in Mutual Funds?
Do let me know in the comment box.
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