Indians save around 30% of their income and are very good in saving ratio. Our saving ratio is one of the best across world, but when it comes to investment, most of the people fail and make major mistakes which hit them at later part of life. Investors today are confused and undecided about the investment decisions. Most of the investors invest without knowing the features of the products and also the risk attached to that -
It is a tradition that almost around 85% people in India invest their surplus funds in so called safe products like Bank Fixed Deposits, Postal Schemes and contractual insurance products. Looking at inflation nos., 85% of investment done in traditional forms is unlikely to beat inflation post tax in the long run.
So why should investors consider mutual funds over others to achieve their investment goals?
Mutual funds allow investors to pool in their money for a diversified selection of securities, managed by a professional fund manager. It offers an array of innovative products like fund of funds, exchange-traded funds, Fixed Maturity Plans, Sectoral Funds and many more.
Whether the objective is financial gains or convenience,mutual funds offer many benefits to its investors.