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NFO Mutual Fund Investment is Only For Common People, Money can be earned by anybody, the thing which matters the most is the investment. In today’s fast and volatile world, investments have become a catchword in the financial arena. Once the necessary expenses are taken care of, people have to decide which the best way is & place for them to invest their hard-earned money.

NFO Mutual Fund Investment is Only For Common People It Is Only For Average And Rich Investors

There are multiple investment options that are available we often hear questions like:-

  • I have money with me where should I invest in?
  • What type of investment is recommended?
  • What should be the strategy?

Most of People Including Financial Adviser Give Common Answer to This Questions Like:-

  • Invest your money in Mutual funds
  • Invest regularly / systematically
  • Invest for long term, Buy hold and diversify

Most average investor believes in this advice and end up investing in mutual funds systematically, that may be because mutual funds investment is much easier, less expensive, and requires very little management.

NFO Mutual Fund Investment is Only For Common People It Is Only For Average And Rich Investors

People invest for long term. They buy, hold & diversify their investment. At the end they may make some profit or capital gains but majority of them end up making loss.

Let’s check out what we are doing while we are investing in mutual funds:-

  • We are giving our hard earned money to stranger to invest in our behalf.
  • Some other person is trying to know market ups and down on behalf of our money.
  • Didn’t have control over our money.

“After doing investments in mutual funds we have to just pray, that our investment gives good returns, which most of the time never gives.”

Here are some of the practical example to understand mutual funds as investment option.

Banker’s Prospective on Mutual Funds:-

Bank has different set of opinion about mutual funds. They consider mutual funds as risky investment option. To understand this concept, try out following experiments.

  • Visiting the bank and try to lend some money from them for investing in mutual funds but the bank will refuse to lend you money saying it is against bank policy. The only reason for not giving loan is that mutual fund’s investments are risky.
  • If you have mutual funds in your form then try to ask loan against it. Only few banks will provide loans like this and that is only up to 50-70%.
  • Try to ask your bank to provide you loan for real estate/ property. They will be glad to provide you loan up to 80% of your property price. But before giving you the money they will check documents for the capability of you making repayment.

Conclusion:

  • Real estate investments are less risky compare to mutual funds.
  • Mutual fund usesall the money for investment. But in real estate loan can be taken for making investment.

Insurance Company’s Prospective on Mutual Funds:-

Insurance company knows that mutual fund are a risky investment option. To understand this concept, try out following experiment.

  • Visit your insurance agent and tell him you want to purchase insurance plan for your existing mutual funds in order to prevent losses.The agent will deny as to protect your common finances by protection saying that it is against strategy.

Conclusion:

It shows that you can purchase insurance for your life, for home or even for a car but you cannot purchase insurance for mutual funds.Investment in mutual funds is pretty good option for an average or rich investor, who has limited knowledge of stock market but for smart/informed investor there are many better investment options which are available out there in the market such as real estate, stocks etc.