Mutual funds are making people rich, desire increased so much!
people investing in mutual funds are getting rich. Such tremendous returns are being received that even new investors are rushing towards it. This desire to invest in mutual funds has increased its market 6 times in 10 years. Equity funds account for 60.19 percent of the total AUM. While debt funds account for 26.77 percent, hybrid funds account for 8.58 percent and the rest 4.45 percent.
According to a report titled Motilal oswal 'Where the Money Flows', the reason for this expansion of mutual funds is economic growth as well as financial literacy, innovation, technology and increased solution process in India. Apart from this, the expansion of the market has also contributed a lot to this.
Investors are most inclined towards equity funds
Mutual fund investors are most inclined towards equity funds. In the december quarter, new investments worth 1.99 lakh crores were made in mutual funds. Out of these, 1.5 lakh crores were invested in equity funds alone. 29 thousand crores were also invested in passive equity. Common investors who invest in mutual funds also believe that a team of skilled people plans the investment there, so the money cannot go down the drain.
Investment is not appropriate without understanding fund activity
Although the inclination of people towards mutual funds is increasing day by day, but its experts believe that investing anywhere without understanding the activity of the fund is not appropriate. At least one should know how that fund is managed. Where is that fund being invested. How strong are the basic fundamentals of the companies in which investments are being made. Apart from that, what kind of diversity is there in the portfolio of that fund. It is very important to consider all these aspects to earn maximum from mutual funds.
