As a universal rule, every investor eyes for best return, however, his appetite to take risk may differ from person to\nperson. It may not be wrong to state that all investors want best return but with least risk. This is where, mutual funds comes as\na blessing. A mutual funds company creates a pool or a reservoir of funds by collecting small savings of individual investors.\nThese companies have professional fund managers who take decision to invest these funds in various stocks and commodities.\nSince an average individual investor does not have the time, resource and expertise to study and research various investment\noption himself, mutual fund option with professional expertise in the area comes a great relief. Also an individual investor can\ninvest his small savings in varied of investment portfolio which otherwise would have been impossible at his individual level.\nAlong with the variety of investment option in which the funds are invested, mutual funds have an added advantage of liquidity.\nInvestment through mutual funds apart from giving benefit of convenience, diversified investment option, professional handling\nthe operations with transparency, also has advantage tax efficiency. It may not be apt to state that in India individual investors\nare not opting for mutual funds. However, the ratio between the choice made by investors between mutual funds and other\noptions of investment such as bank fixed deposit, equity shares, gold real estate etc is very low. Educating the investor â??\nespecially the rural investor and convincing them that mutual fund investment is a safe bet and also it will give them a decent\nreturn is the biggest challenge.
Loading....