Myth & Fact all about Mutual Fund


Myth & Fact all about Mutual Fund

 Myth: Mutual funds are stock market investments 

 Fact: Mutual funds are diversified investments that invest across stocks, bonds, money market instruments and combination of these. Mutual 
Myth: One can only invest large sum in mutual funds 

 Fact: An investor can start mutual fund investment via Systematic Investment Plan (SIP) mode and invest regularly with amount as small as ` 1000.


 Myth: SIP gives positive returns 

 Fact: Mutual fund SIPs are subject to market risks and there are no guaranteed returns in these tools

 Myth: SIPs are beneficial for short-term 

 Fact: There are different mutual fund options for short-term and long-term goals. SIPs have historically given better returns when invested for long-term.
Myth: Net Asset Value (NAV) is the performance indicator of a mutual fund. 

 Fact: NAV is only the price per unit of your invested fund. The decision to select a mutual fund should not be based alone on this factor. 
Myth: Entire amount invested in Equity linked savings scheme (ELSS) via SIP can be withdrawn after 3 years. 

 Fact: Every SIP installment of ELSS fund has to complete lock-in period. 

 Myth: Star rated / top performing funds are risk free 

 Fact: Performance of all mutual funds are subject to market risk.

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