Where should one park his/her savings? Invest in Mutual Funds or walk in to the nearest bank to start a fixed deposit?
Most of us will choose a fixed deposit in a scheduled bank over Mutual Fund investment, the simple reason being that the returns from fixed deposits are constant.
It isn’t true
The Fixed deposits in banks might give one close to 9% interest. But when you factor in the rate of inflation, which was 6.5% in the month of September 2014, the actual rate of returns from your investment in Fixed deposits will be less than 3%. Seems astounding?
But what about Mutual Fund investment?
A study by a leading Asset Management Company (AMC) found out that equity funds have given an annualized return of 23% between April 1997 and September 2014. Some growth funds have even given investors annualized returns of 27%. The striking thing to note here is that even investing in CNX Nifty stocks would have only given an investor annualized returns of only 13%.
The retail journey
How will a retail investor get the right advice for Mutual Fund investment? The right advice becomes more crucial in case of investors with limited knowledge of Mutual Funds. Following are some of the factors which you should look in a Mutual Fund distributor before you invest in Mutual Funds:
• Years of experience of the distributor
• Capability of the distributor for to service you post your investment
• Educational qualifications of the Mutual Fund distributor
• Testimonials from earlier customers of the distributor.
Don’t let your savings earn lower returns by investing in Fixed deposits. Find out a trusted distributor and invest in the best schemes of top performing Mutual Funds.
Most of us will choose a fixed deposit in a scheduled bank over Mutual Fund investment, the simple reason being that the returns from fixed deposits are constant.
It isn’t true
The Fixed deposits in banks might give one close to 9% interest. But when you factor in the rate of inflation, which was 6.5% in the month of September 2014, the actual rate of returns from your investment in Fixed deposits will be less than 3%. Seems astounding?
But what about Mutual Fund investment?
A study by a leading Asset Management Company (AMC) found out that equity funds have given an annualized return of 23% between April 1997 and September 2014. Some growth funds have even given investors annualized returns of 27%. The striking thing to note here is that even investing in CNX Nifty stocks would have only given an investor annualized returns of only 13%.
The retail journey
How will a retail investor get the right advice for Mutual Fund investment? The right advice becomes more crucial in case of investors with limited knowledge of Mutual Funds. Following are some of the factors which you should look in a Mutual Fund distributor before you invest in Mutual Funds:
• Years of experience of the distributor
• Capability of the distributor for to service you post your investment
• Educational qualifications of the Mutual Fund distributor
• Testimonials from earlier customers of the distributor.
Don’t let your savings earn lower returns by investing in Fixed deposits. Find out a trusted distributor and invest in the best schemes of top performing Mutual Funds.
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