UNDERSTANDING THE DYNAMICS OF MUTUAL FUNDS
“Successful investing is about managing risk, not avoiding it”- By Benjamin Graham. The biggest risk is not taking any risk . Due to plethora of investment options ranging from debt funds to equity funds, mutual funds have been successful in diversifying the risk based on one’s risk appetite. Mutual Funds generate income from its investment portfolio and is distributed proportionately amongst the investors after deducting applicable expenses. Every individual by ITSELF or with the help of mutual fund advisor/distributor can invest in mutual funds even if he does not have requisite knowledge. This investment can be for short term to long term based on one’s investment horizon. Even you can invest for few days. These mutual funds are associated with various benefits, lets have a glance to it: Higher Returns - Mutual Funds has ability to provide returns greater than fixed deposits. It can provide returns ranging from 7%-30% based on ones risk appetite. Liquidity - Ex...