Why have Mutual Funds become so popular as investments?


Posted May 21, 2022 by Rkfsfinancialservices

Since the beginning, mutual funds enjoy being the preference of investors over other volatile financial products, like stocks. But, with the passage of time, the mutual fund industry has grown at a very good rate.

 
New Delhi, India
9 May 2022
Since the beginning, mutual funds enjoy being the preference of investors over other volatile financial products, like stocks. But, with the passage of time, the mutual fund industry has grown at a very good rate.
This is evident by the following data:
• In the year 2014, the AUM of this Indian industry exceeded Rs. 10 trillion, and it is shortly after that in 2017, the total size of AUM doubled (i.e. it reached Rs. 20 trillion).
• The year 2020 marked AUM size to Rs. 30 trillion and on February 28, 2022, it stood close to Rs. 38 trillion.
You can see how quickly the mutual funds industry has expanded, and this is because investors love to put their money into this advantageous and lucrative investment instrument.
According to the spokesperson of RKFS, “following the stock markets closely requires interest, knowledge, and time. One of the biggest differences between investing yourself in different investment instruments and putting your money in mutual funds is that your savings are cared for daily and monitored by experts”.
The responsible portfolio managers do nothing but seek to ensure investors the best possible return on their investment. If something happens in the market that makes restructuring advantageous, the portfolio managers react.
Access to hard-to-reach markets
By saving up in an investment fund, you get the opportunity to invest in markets you could not otherwise invest in. Due to the economies of scale of the mutual funds, you have the opportunity to enter different financial markets.
Diversification
In addition, today, the mutual fund industry offers a richer and more diversified value offering, allowing clients to have better financial planning for their future.
Affordable initial investment funds are the reason why investors choose mutual funds because mutual fund investments are suitable for novice investors.
“Your initial investment capital can start from Rs. 1000. With a small initial capital, you definitely won't be afraid to lose, right? From this small initial capital, you can get large profits or returns. In fact, according to some investment experts, the profit value is several percent higher than investing in gold”, said the spokesperson.
Safe and Transparent
What is feared in investing is that our money may be lost or unsafe. This is also one of the main reasons why mutual funds are a great choice as they are very safe and transparent.
In mutual fund investments, an investor doesn't have to worry about his/her funds being taken away by the Investment Manager because the funds deposited are not held directly by the Investment Manager, but are held by a Custodian Bank to protect investors’ money.
Beginner investors are usually hesitant in choosing investment instruments for fear of buying the wrong one. Investing in mutual funds allows them to be assisted by a professional investment manager.
The existence of an investment manager ensures that the funds pooled from the investors are placed in profitable instruments. As an investor, you only need to provide funds, then the investment manager will analyze market trends, to find the best place to invest that matches your investment goals.
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Regards,
Hemu Kaushik
Innovative Infonet Private Limited

+91-9810626292
[email protected]
www.onlinew2i.com
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Issued By RK Financial Services
Business Address A-7, Block B1, Mohan Co-operative Ind. Estate, Mathura Road, New Delhi -110044
Country India
Categories Business , Finance
Tags business , investment , mutual fund investments
Last Updated May 21, 2022