Non-Clinical Support » Personal Finance

Mutual Funds

Basics

Mutual funds are investment vehicles, and you can use them to invest in asset classes such as equities or fixed income we recommend that you use the mutual fund investment route rather than invest yourself, unless you have the required knowledge.

We go to a doctor when we need medical advice or a CA for tax and accounts guidance. Similarly, mutual funds are investment vehicles managed by professional fund managers. Mutual funds managers are like professional money managers.

There was a time when things were quite simple in India - the market went up with the arrival of the first monsoon showers and every year around Diwali. With the start of the liberalisation process in India, complex factors such as an increase/decrease in fed rates in US, Increase/decrease in oil prices, increase/decrease in commodities prices, etc. have started having an impact on the Indian markets.

Although it is possible for an individual investor to understand Indian companies in such an environment, the process can become fairly time consuming and risky. Mutual funds whose fund managers are paid to understand these issues and whose asset management company invests in research, people, training, etc. provide an option of investing without any tension.