Why mutual funds are good for long-term?

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Why mutual funds are good for long-term?

Investing with a long-term horizon is good in the long run. It instils financial discipline and gives your investments more time to accumulate enormous wealth. Investing with a long-term horizon is extremely important for equity-linked investors. It mitigates the risk of market volatility to a greater extent.

Which mutual fund is best for future?

The table below shows the best equity funds:

Mutual fund 5 Yr. Returns 3 Yr. Returns
ICICI Prudential Technology Fund 33.71\% 44.16\%
Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan 33.96\% 43.89\%
TATA Digital India Fund DIRECT Plan Growth 35.85\% 43.73\%
SBI Technology Opportunities Fund – Direct Plan – Growth 30.57\% 40.41\%

Can I lose money on mutual funds?

All funds carry some level of risk. With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.

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Is mutual fund really beneficial?

Mutual funds are a safe investment if you understand them. Investors should not be worried about the short-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.

Which SIP is best for future?

Large-Cap Schemes

Scheme Name 5-Year Monthly SIP 10-Year Monthly SIP
ICICI Pru Top 100 Fund (G) Rs.9,41,591 16.02\%
Quantum LT Equity Fund (G) – Direct Plan Rs.9,15,695 16.86\%
Reliance Growth Fund (G) Rs.10,75,057 18.05\%
SBI BlueChip Fund – Reg (G) Rs.9,55,955 16.86\%

Which is better FD or mutual fund?

FDs give assured returns while mutual funds are subject to market risks. However, if you understand your risk appetite and invest accordingly, mutual funds can be good investment options in a declining interest rate environment.

Are mutual funds 100\% safe?

Which is better MF or sip?

SIP can be considered as a better route to achieve the financial plan and investment goals. Mutual funds provide an investor with an option either to reinvest the earnings or returns. If instead of withdrawing an investor reinvests in the same plan he can enjoy the benefits of power of compounding.

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Why you should consider investing in mutual funds?

Investors do not need to spend time doing their own research and let the fund manager do the job for them.

  • You have an opportunity to invest in a bouquet of the potentially best performing funds.
  • Proven research process and risk control measures that are essential for making investment in any mutual fund schemes tend to work in favour

    • What are mutual funds and why should we invest in them?

    Mutual funds allow you to turn the selection of individual stocks, bonds and other investments over to professionals. This makes mutual funds a great option for hands-off investors. Pick an area of the stock market and there’s bound to be a mutual fund to help you invest in it.

    Why should you invest money in mutual funds?

    Built-in diversification. When you buy a mutual fund,your money is combined with the money from other investors,and allows you to buy part of a pool of investments.

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  • Professional management. You may not have the skills and knowledge to manage your own investments or want to spend the time.
  • Easy to buy and sell.
  • A wide range of funds to choose from.

    • Why investing in mutual funds is better than stocks?

    Intensive research on companies and the overall industry is required before investing in stocks

  • However,mutual fund house has professional fund managers along with a team of analysts
  • Investing in MFs is always a better option than stocks if investing via systematic investment plan