Tuesday, 20 October 2015

Mutual Fund in Detail -1

                 
                                                                 [Image source : sandyyadav.files]
  
    Usually people use to say that when someone buys a product the neighbor’s in that surroundings will naturally buy the same one, the growth of television in many homes can be attributed to that, gradually consumerism has started which resulted in growth of many such products. Bikes, Phones, mobile phones, computer, Refrigerator, Washing machines, real estate etc all have developed because of the growth in consumerism which has been ditched upon the common people.

    Everything has developed, consumer goods companies, real estate owners, sellers of these consumer goods, bank’s too as they had started offering EMI schemes, housing finance companies, the only thing which had deteriorated among the so called consumers or common people in the last 20 years is the habit of savings and the only thing which had mostly never attracted is INVESTING.

    We always go by the review in google nowadays and sometime occasionally by our friend’s words, how many of us have really benefitted from discussing on the topic of investing and investing in equities in particular. Even if we had discussed, we will forgot the next day on this as month end EMI will become a monster to think about investing. Mutual fund is one such example was people were not thought about the power of money compounding and about becoming rich.
     

What is Equity?

    Equities are the biggest wealth creator, more than a real estate, gold or any other way we have known, but the sad part is most of the Indian’s aren’t aware of it or doesn’t want to know about it. There is always thinking that when the returns are high the risk will also be high, absolutely perfect, have you ever thought of how to minimize the risk to get that return.
Buying a share is risk as you may end up on the losing side, but thru mutual funds the risk is minimized to a great extent, Mutual fund not only invest in equities but also in government bonds, treasury bills, corporate deposits etc.

On a simple note, earlier people will get money from the banks or village’s biggie to start his own business; modern day business man had found a new way to earn and give it back to the society in the name of stocks, shares, equities you can call it in any name. The only challenge is many had found a way to cheat the investors or people while doing share trading which had forced many to go away from the stock market.


The best way for a nomad investor is to go with mutual funds and take equity way to make a huge corpus under his kitty.

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