Abndnze:
twitter

Mutual Funds – A perspective


India’s mutual fund industry that has grown at a compound annual growth rate (CAGR) of around 22 per cent in the last 8 years (from Rs 1.39 trillion in March 2004 to Rs 6.75 trillion by February 2012), its penetration level of 9% [mutual fund assets under management to GDP ratio] is abysmally low when compared to 35%-85% in developed economies.

Whatever be the rationale for these responses, there are a variety of mutual products suited to every need and every investor profile.

Though mutual funds have been available in India for over two decades only 10% of Indian households have invested in them.

The reason for not investing in mutual funds can be attributed to varied reasons. While a large percentage believe them to be too risky to invest in, some stay away due to a lack of understanding of what they are and how they work, and others cite the reason of not knowing how to invest in them.

Whatever be the rationale for these responses, there are a variety of mutual products suited to every need and every investor profile.

Whether you are a high risk taker to a very conservative investor, investing for the short term with high liquidity needs to long term investment horizon, investing for either regular income, capital protection or wealth creation there is a solution and product offering for all types of investors.

Besides, one can derive a host of other benefits by investing in them. Mutual Funds are affordable to invest in, provide lower risk due to diversification, are highly liquid and flexible and are professionally managed thus saving you the time and effort in creating and managing your own investment portfolio. And they are more tax-efficient.

This entry was posted in Mutual Funds. Bookmark the permalink.