Why should you invest in mutual funds?

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http://www.jayantharde.com/
Investing in Mutual Funds is less risky than investing in Stocks. You can start investing in Mutual Funds via Systematic Investment Plan (SIP) with amount starting from just 500 per month. The market is flooded with the thousands of scheme of companies. You can easily check their performance with of help of several websites and applications like Moneycontrol. All the historical and statistical details are mentioned there. You can easily choose any of the top-ranked and top performing schemes like Aditya Birla, Reliance, Tata, HDFC, ICICI, SBI, L&T and thousand others.
Remember large-cap schemes offer stability with lower risk and small-cap schemes offer higher returns but with the risk factor. Ask us or take out some time and analyze yourselves. Also, remember that mutual funds return good returns over a longer period of time like 10–20 years. But you can exit easily as per your wish depending on your schemes.
Now the key point here is that unlike the story of my childhood I told above, where your money is increasing via Compound Interest and if you are unaware with the magic of compounding, go through the example given below.
Example-
1. Suppose A invested 1000₹ per month for a period of 10 years at 12% average growth.
Total amount invested= ₹ 1,20,000
The amount at the end of 10 years= ₹ 2,32,339
2. Suppose B invested 500₹ per month for a period of 20 years at 12% average growth.
Total amount invested= ₹ 1,20,000
The amount at the end of 20 years= ₹ 4,99,573
3. Suppose C invested 1000₹ per month for a period of 20 years at 12% average growth.
Total amount invested= ₹ 2,40,000
The amount at the end of 20 years= ₹ 9,99,147
Impressive isn't it! More the duration and money invested results in more returns.
A fact- Till 2016, the amount of money invested by Indians in Mutual Funds was about ₹ 17 trillion, which is 2017 grew to about ₹ 23 trillion.
So go ahead, save and invest! Fulfill your dream of buying a car or bungalow or may be planning for your child's education.


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