India is an emerging economy and is considered as a bright investment destination, riding on its high growth and savings rate. According to a report by United Nations Population Fund, more than 50 percent of the country’s population is below the age of 25, with most of them joining the workforce for the very first time.
It is very crucial for inculcating the investment habit at an early age and achieve financial freedom. Mutual funds could be the option for people looking for wealth creation over time as it offers asset allocation and diversification with relatively limited amount of fund.
Recognising the importance of financial independence, Reliance Mutual Fund has introduced an initiative for getting households in the country for investing in Mutual Funds and instilling the habit of regular investments.
The 7th day of every month has been declared Mutual Fund Day (MFD), a Mutual Fund Day is just like an ordinary day but it’s about thinking something extraordinary, something about your future, and to take the smart and elegant steps to secure it. We believe, it’s very important to enjoy our present but it’s equally crucial to secure our future financially. Take a vow to put your money in mutual funds as a secure investment for more fulfilling future. To motivate the retail investors in investing at a regular interval and to help them so that they achieve a high financial quotient Reliance Mutual Fund celebrates 7th of every month as Mutual Fund Day.
The most common and popular way of investment is to set up a Systematic Investment Plan (SIP). Under SIP, an investor commits to invest a certain sum on particular day or days of every month despite of the market condition. The biggest advantage in this manner of investment is that it takes the stock market timing decision making out of the investor’s hands. It also allows investors to invest small amount of money beyond a long period of time and converting their savings into fruitful investments. In short, systematic investment plan (SIP) is a vehicle for a regular, disciplined and a long-term investment on an auto pilot mode.
Think Mutual Fund, Think for Long Term Investment
Eating delicious but not so healthy food may be temporarily enjoyable but on a long-term basis, may not be productive later in life. On the other hand, having not so delicious healthy food is a smart investment for better health, even in your old age. The same view holds good when it comes to investing in long-term mutual funds (equity oriented mutual funds). In short run, mutual funds may seem volatile but they make way for solid wealth creation if it’s held for a long term.
Why should you invest in mutual funds?
Higher Returns: Mutual funds can fetch better returns, when compared to conventional investing options such as NSCs, PPF, Bank Fixed Deposits, Recurring Deposits, etc. An investor can customize the investment amount in mutual funds according to his appetite and also benefit from the effect of compounding.
Flexibility: Mutual funds let the potential investor re-balance his portfolio as per his needs. Depending on the investor’s age,income and his risk appetite, the investor has the option to shift between debt and equity mutual funds.
Liquidity: Investment made in the units of the Mutual fund can be redeemed as and when required, offering easy liquidity. Generally, Mutual Funds have little or no lock-in periods.
With Reliance Mutual Fund’s Fund for a Friend initiative, you can help a friend in investing wisely in Mutual Funds your friends and relatives in understanding mutual funds. The initiative helps you to suggest investment to your friend based on his investment profile. It suggests investment type based on his risk appetite, Income, Liabilities, Loans etc. You can help your friends to understand their financial goals on this Mutual Fund Day and let them understand what profile works best for them.