Why to Invest in Mutual Funds ?

               Time has gone when  people were  used  to  keep their money under the soil to protect it from theives. For example

                in the year 1995, your grandfather has secured Rs. 1,000/- under the  soil for  his  grand child (means you) then it 

                was a great deal for him because Rs.1000/- is big amount in 1990 for any middle class person. But today when you 

                get  this  money (Rs.1000/-)  from him  in  year  2016  it is nothing for you. You can’t  even  buy an  average android 

                Mobile set from this amount. So keeping this amount under the soil was completely useless.

                Instead of doing this if he has choosen to buy gold or shares or Mutual Fund from this amount then the amount might

                have grown multiple times…

               

                Let’s see the real picture of this investment….

Year	In the form of Cash	Bought Gold @4650/-per 10 Gram Bought = 0.21 Gram	Bought NIFTY @ 1000/- Bought = 1 Unit	Bought Mutual Fund Units (ex. Reliance Growth Fund) NAV = 11 Bought = 90.9 Units
Invested in 1995	1,000/-	1,000/-	1,000/-	1,000/-
Current Value (2016)	1,000/-	6,881/-	8,900/-	82,000/-
P/L	0	5,881/-	7,900/-	81,000/-
Return	No gain	5.8 Times	7.9 times	81 times
Type of Risk	Risk of Physical Loss	Risk of Lost/Theft	Market Risk	Risk is Managed by Experts

 

                So it is clear that  keeping  money  in the  form of  cash is useless  but  keeping  in  the  form  of gold  in  good on the 

                other hand keeping in th form of shares is good but risky while keping in Mutual Fund is much much better and  it is 

                safe also.