Why to Invest in Mutual Fund & It's Benefits

By Awanish Kumar @snazzyawi
Making money is a happiness, And that's a great incentive. From last decade, people have started thinking about how we can save money for our future with proper financial planning & investment. These days with the help of Internet it became much easier to promote & get services for financial planning & do trading on stocks with the help of Investment companies.
At the start of every month, we are reminded of our expenses from electricity bill, telephone bill, EMI's, home loan, Insurance premiums & much more. We all set reminders & track our budget to ensure that we meet the deadlines before they are due to avoid any late fees or interest charges. 

Do we ever think the same way when it comes to investing? This is a most important point which I will cover in this post along with some insights on Mutual fund investments & its benefits. Recently I was invited along with few finance bloggers from Mumbai by Reliance Mutual Fund for a Bloggers meet at their Business center in Mumbai. The agenda was to bring awareness for Mutual funds & its benefits through blogger. In this post,  I will explain about the Mission Prosperity Mutual Fund Day (MFD)  &  Fund For A Friend (FFAF) initiative by Reliance To start with, Let's understand with few basics of the Mutual Fund, its definition  & how we can make more money by investing it this product.

What is Mutual Fund: 

In simple words "Mutual fund is an investment program usually run by an asset management company that coordinates with a group of people & invest their money in equity, stock markets, bonds & securities in order to provide maximum returns on investment."

How Mutual Fund is different & it Benefits:

Anyone who earns money through business, daily jobs & other modes can start in this instrument. Most of us expect maximum returns on our investment, which not a bad thing. Traditionally most people deposit their money in banks in form Fixed & Reoccurring deposits, which is not a bad thing at all. But are we really getting the ROI through such instruments? The answer is "No". Why?


This is because the current rate of interest on bank deposit which is currently at 6-7 % approximately is not enough to provide high returns on your idle money. The only benefit it has that you can have with them is you can withdraw it whenever you want. When it comes to saving for your future do we really bother about withdrawing it in a short duration of time? The answer is again "No". Now coming to the people who want to invest in the stock market but don't know anything about the way it works. They don't know which equity or stock is giving high returns, they don't have the knowledge about the trends of the market.  Some people loose their money by speculating the market & investing their money without any knowledge & end up losing their money. This is where mutual funds come in handy to rescue you from all this. A fund manager will do the job for you with the help of research team that will continuously analyze the market trends and will select suitable investments to achieve your goals. They charge a nominal fee as a fund management charges for investing your money in stocks. Don't worry every these Mutual Fund houses & Asset management companies are regulated by SEBI( Securities & Exchange Board of India). 

What is Mutual Fund Day (MFD): 

Har Mahine ki tarikh saat, Kijiye Mutual Fund ke aadat se ki shuruat !

The MFD is an initiative by Reliance Mutual Fund to aims to reach out to the all the investors in India, to build awareness & consideration towards Mutual Fund, so as to help investors to fulfill their dreams by investing in an asset class. through various Investor Awareness, Camps & Media led events Reliance Mutual Fund in partnership with Network 18 is connecting the dots to educate the mass of our country to inculcate the habit of investing regularly. Unleashing a Mutual Fund revolution in India MFD seems to be a perfect way to achieve our investment goals.Just like we celebrate World Environment Day, Mothers Day & important days in out life, we should celebrate 7th of every month as an investment day #MFDaysOn7th.


What is  Fund For A Friend (FFAF):

FFAF is a quiz in form of a mobile application where you can help your friends to achieve the financial goals by answering few questions regarding their nature. Based on your answers the app will find out what profile works best for him. Again this is an initiative to promote Mutual Fund Investment & bring awareness among investors.Recognizing the need for financial independence we should engage more with such initiative & share the information with our family, friends & colleagues. Let me know in case you have any queries related to Mutual Funds & I will try to help as much as I can.