Five mutual funds myths busted

Back to all Infographics


1. Need a large sum of money to start investing

Investors can begin their investing journey in a mutual fund with as low as Rs 500 in case of SIPs (systematic investment plans)

2. Mutual Funds only invest in Equity Markets

As per Investors risk appetite, Investors can choose to invest in variety of Mutual Funds which has the flexibility to invest across Equities, Debt, Gold, commodities etc. as per the investment objectives of the fund

3. Young people should not invest in Mutual funds

Benefit of compounding increases the earlier you start investing. Hence, Investors should start early to get the maximum benefit of compounding to create wealth over long periods

4. One needs to invest in various mutual fund to get diversification benefit

Mutual Funds itself invests across different asset class/sectors which provides the benefit of diversification. Hence one should not invest in too many funds and overdiversify.

5. There is no need to track your mutual fund investments

Like all investments, mutual funds must be monitored for deviation from the investment objective or simply for trimming / adding equities during a market upturn / downturn for asset allocation purposes.

Mutual funds offer a simple and convenient way to build long-term wealth. You can get more out of them by sticking to the basic, common-sense principles of investing and ignoring the myths highlighted over here.

Read more

Popular Infographics

Tag Clouds

Related Infographics

Leave a Comment

Thanks for submitting your details.

Importance of Financial Planning - A Key to Wealth Creation

30 June 2022

Benefits of seeking professional financial guidance

16 June 2022

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.


The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.


Proceed to the website


Thank you for visiting www.bankofbaroda.in

X
We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.