Myths and Facts about investing in Mutual Funds

 Myth 6:Mutual funds only invest in equity markets. 

Fact: Mutual Funds have a diversified portfolio that has equity shares, government treasury bills, cash equivalent , gold, company deposits, land , etc. Mutual Funds allow investors to create diversified financial portfolios through exposure to a spread of asset classes. 

Myth 7:Too young to start out investing 

Fact: On the contrary, the first you start investing, the more wealth you'll accumulate. there is no "Too Young" when investing in mutual funds. The expert analysts and portfolio managers in Mutual Funds enable anyone with an intent to start out investing regardless of their age, experience, and profession. Experts also believe that it's better to take a position in mutual funds from an early age. that's because it allows you to stay invested within the marketplace for an extended period and have time to your advantage when the market suffers an unprecedented crisis. 

Myth 8: SIPs are best suitable for Equity Mutual Funds 

Fact: regardless of the sort of open-end fund you select to take a position in, SIPs remain a viable option. Whether it's equity, debt or hybrid mutual funds, SIPs are suitable for every one among them. Any information that says otherwise is nothing but hogwash. 

Myth 9: Debt is best than equity 

Fact: Debt funds and equity funds have their strengths and weaknesses, but it might be unfair to mention one is best than the opposite as they serve different purposes like debt funds remain stable against market downfall. In contrast, equity funds are known to supply better returns. Depending on your specific situation, you'll find that perhaps debt funds serve your budget better than equity or the other way around . But, first, understand both the mutual funds thoroughly and see which one aligns better together with your requirements. 

Myth 10:Know Your Customer (KYC) is required Multiple Times for open-end fund Investments. 

Fact: Although KYC is mandatory for investing in Mutual Funds, it is a convenient one-time process. With digital banking, the method has become seamless with just a couple of steps. So don't fret about the KYC process; fear the misinformation surrounding mutual funds that hinder investors such as you from unlocking a fantastic investment opportunity.