Creating Wealth With Mutual Funds
-Varun Gurnani
Being an aggressive investor is not necessary to create wealth with mutual funds for your mid-term and long-term goals – (Anonymous)
Mutual Funds (MFs) provide a safe and easy option in creating wealth. An MF is financial product that pools money from different individuals and invests it on their behalf into various assets, such as equity, debt, gold etc. According to the risk appetite and financial goal of the investor there are several schemes to choose from. Key Features of MFs are simplicity, affordability, professional management, diversification and liquidity. In the situation of whole country lockdown, Mutual Funds were only asset class to provide liquidity whereas banks, post office, insurance companies were not operating. Also, unlike several other financial products, MFs offer the freedom of not having to invest on a continuous basis in a situation of no cash flow. This means that the invested amount will have the potential to grow till one decides to liquidate it.