“Why don’t you invest in Mutual Funds? “, I asked my friend Yuvraj. He was talking about banks FD interest is headed southwards and investments in Gold and Real estate are not growing as earlier. “Mutual fund investments are subject to market risks.”, he mimicked the statutory warning in “They are not safe” he replied. I explained that there are liquid funds which can be an appropriate alternative for saving bank accounts.
But I realized Mutual funds are currently not the first choice for investors even the literate kind who stay in metros. One cannot imagine, the mental blocks that a person from a small town or city has to overcome. And it’s not that Mutual Funds are something new. UTI introduced the Mutual Funds to India in the 1960s! Mutual funds are not well received because consumers perceive them as high-risk investments. There is a need to encourage households to shift from physical savings to financial avenues, especially mutual funds. With this objective in mind, SEBI has mandated mutual funds to set apart 2 basis points for investor education.
Different Mutual Fund Companies have started their own awareness programs. Realizing the importance of, What gets scheduled gets done, Reliance Mutual Fund has come up with Mutual Fund Day on 7th of every month.Every 7th of the month Reliance Mutual Fund engages with investors.
Reliance Mutual Fund Investor Program
I loved Reliance Mutual Fund initiative about helping a friend invest in mutual fund using risk profile concept.
Matching investment needs to risk is an important concept. Risk profiling is the evaluation process to find out individual’s willingness to take the risk. This process defines the risk tolerance level of the investor after taking into account the understanding and acceptability of risk in different situations of life. Risk tolerance score comes out after taking into account not only the psychological factors but also your investment horizon and Investment objective.
Why understanding Risk Profile is important
Is your friend passionate about adventure vacations? Aim to help them get on top of finances too by taking the #FundForAFriend quiz, https://www.facebook.com/RelianceMutualFund/app/488749287856985/ and help them invest in Mutual Funds.
Related Articles:
- Get started with Mutual Fund investing: KYC, Platform
- Systematic Transfer Plan or STP in MF: What is STP,How to invest
- Mutual Funds: Registrar and Transfer Agent : CAMS, Karvy
- Investing in Equities: Stocks vs Mutual Funds
