5 Myths About Mutual Funds
There is a demand for big investments in mutual funds
Mutual funds don't need large initial investments. Investing early allows your money to grow.
Diversification requires many mutual funds
Mutual funds spread investors' risk by investing in shares, debt, and money market assets. Mutual fund members may diversify their portfolio depending on their risk appetite.
Top-rated mutual funds provide higher returns.
Market risks affect mutual fund performance. A good fund may not perform well in the future. Mutual fund investments must be monitored to fulfill investors' demands.
Mutual funds need a demat account
Demat isn't needed for mutual funds. Fill out the application and be KYC-compliant, then choose a fund and submit a check. Financial advisors simplify investments and provide better guidance.
Beginners should avoid mutual funds
Risky investments need skill. Mutual funds invest publicly. SIPs enable novice investors to regularly invest modest sums. Mutual fund performance may be evaluated.