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5 myths about mutual funds.

5 myths about mutual funds.

Rohit Sharma 31 Aug 2020

Five myths about mutual funds  

1-Mutual funds are full of risk.

In the long run, we have learned from our friends, family, and relatives that investing in mutual funds is very risky. Yes, it is risky but if we have the best knowledge of investing then we won't feel any collapse, the same applies in the mutual funds the moment we invest in it we get the financial managers who handle our investment wisely. 

The mutual fund gives us a safe opportunity to invest in the market we get to see the brighter side of the market through this. A mutual fund is a subject to risk, but they invest the money in parts to the best companies of the market through this. So it is not that full of risk how people think about it.

2-You need lots of money to start.

Earlier, we saw that people are making the wrong perception that mutual funds are full of risk, however, they also make erroneous thinking that you need a lot of money to start investing in mutual funds.

You can start an investment in mutual funds as low as Rs 500 in an equity-linked saving scheme (ELSS) or Rs 1000 every month in systematic investment plans (SIPs).

These are the lowest price you can start investing within mutual funds, a middle-class family man can also invest in the mutual funds without troubling their financial chart, with this they can invest to grow into the market and this again breaks this myth that you need a big amount to start investing into the market.

3- You need a master's knowledge of the market to invest.

It's again a misconception, people tend to have this in their mind that they need a master's knowledge to start investing in mutual funds before you invest. You get the full guidance of the company's experts to pick up the best of the market. They explain to you everything about the share.

The finance expert always provides you with the best knowledge of the market with their experience, with the help of them you can invest wisely and grow your fortune with it. With the guidance of the expert, you can learn from them and grab the knowledge.

4-You need the Demat account to invest in Mutual funds.

Although It is beneficial for you to have a Demat account, that doesn't mean that you need a Demat account to start investing in mutual funds.there are so many online distributors who provide you the funds with the best knowledge of investment, you will get all the guidelines from them about the mutual funds.

 apart from that, you can get it directly from the fund house. From there you can buy it directly along the side they will provide you the mutual fund from their parameters.

5-You can not invest in the international market & it's hard to exit from the mutual funds.

Due to COVID-19, the Indian market has seen some disaster numbers in the economy but, with this, we ponder to invest in the international market. But, we tend to get this that we can not invest in the international market. This is not true. We can invest in international mutual funds.


Despite this, people also believe that it's hard to exit from the funds. They think if you sign for X years then you have to stick with it or the company will charge you with the penalty. It is not true you can sign freely for 5,10,20 or whatever time you want to invest. You can easily sign off with a single notification.

So, after all the points we hope that we have provided you with the best knowledge about the myth of Mutual funds that people are creating around the market with no credibility in it. We are not telling you, people, that it is full of risk-free but yes for sure it is not full of risk too.

Keep coming to our website to learn more about investment plans, we hope that we will always help you to guide you the best.




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