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Keep these things in mind while buying mutual funds, otherwise you will incur losses.

Sagar Patel

By Sagar Patel

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mutual fund investment

Mutual funds are emerging as the best investment option in the current times. Now not only big cities but small town residents are also investing heavily in mutual funds. If you are also going to buy mutual funds, what do you look for first? Navi Mutual Fund has recently conducted a study among mutual fund investors and non-investors.

According to this study, the first priority of mutual fund investors is profitability. That is, when buying mutual funds, people first think about profits. This study shows the importance of increased financial education and addressing misconceptions to empower young adults to make informed investment decisions.

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Profitability is the number one priority for 1 in 2 investors when choosing a fund. This applies to both active funds and index funds. 1 in 3 index fund investors do not fully understand the concept of index funds. According to the study, index funds are preferred due to low fees and positive experiences from friends and family.

There is dependence on these

80 percent of investors rely on their social networks and “fin-fluencers” for investment information. Below are some of the biggest misconceptions from the study.

Misconception 1: Mutual fund investing requires extensive financial knowledge More than 60 percent of the study participants believe that mutual fund investing requires extensive financial knowledge, which deters potential investors.

Misconception 2: A large lump sum is required to start investing.

It is also a myth that a large sum of money is required to start investing. This myth prevents or discourages 1 in 3 potential investors from investing. While the reality is that many mutual funds allow you to invest with very small amounts.

Misconception 3: Investments are not safe if the investment app is closed

Nearly 50 percent of non-users fear that their investments will not be safe if the investment app is shut down. The findings of Navi’s study highlight the need for more financial education initiatives to empower investors. Mutual fund houses can develop and provide user-friendly educational resources and tools that simplify the concept of mutual funds and the investment process while removing common misconceptions. Access to such reliable and trustworthy resources can significantly reduce barriers for young investors, enabling them to make more informed investment decisions.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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