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MYTH BUSTERS


MYTH: MUTUAL FUNDS ARE NOT FOR BEGINNERS.

Fact: Mutual Funds are ideal for beginners because the money is managed by investment experts.

If you are a newbie to the world of investing but are serious about growing your wealth, look no further. For mutual funds might be one of the ways to start. But how does one go about figuring out what each fund is about? Don't you worry! One of the most significant reasons why mutual funds are a great choice for beginners is because you have a professional and seasoned fund manager who manages your Scheme investments and making sure that your risk will be get diversified by investing in multiple securities.

While each mutual fund scheme comes with an investment objective, it also comes with a fund manager who has a keen eye on the markets and is well versed in the intricacies that comes with the responsibility of managing a pool of money.

Backed by research and ongoing analysis of markets, fund managers endeavour to time investments better and aim that you get the relatively good returns. That's not all. Since they have a better understanding of the markets tracking fund performance minutely, they are in a better position to make informed decisions that may reduce risk of investing in unknown securities.

So don't worry about whether you are new to investing or not. Rest assured, you have a professional backing you all the way.


MYTH: MUTUAL FUNDS REQUIRE LARGE INVESTMENTS

Fact: You can start investing in Mutual Fund Schemes through an SIP of Rs. 500 per month.

This is one of the most persistent myths, which has been dispelled over the years. Most funds allow you to invest in their shares with an amount as low as Rs. 500 per month. Systematic Investment Planning (SIP) can help you create wealth by investing small amounts, regularly, over a period time. SIPs allow you to buy units on a specified date every month, which help in putting an Investment plan in place.

To invest in SIPs, you don't need to time the market. If you are unfamiliar with the market, then timing the market can lead you to miss out on opportunities. Rather than timing the market, investing regularly ensures that one is invested whether the market is facing a high or low. SIPs help you brave the market volatility and still be invested in the market.

Though longer period of investments can reap larger benefits, you can decide whether you want to withdraw from the SIP or increase or decrease the value of investments depending on your financial situation.

Simply put, you don't need large investments to start investment. SIPs may help you create a investment plan to build wealth in the long run.


MYTH: MUTUAL FUNDS ARE VERY RISKY.

Fact: Mutual Fund Schemes invest in various securities that help in diversifying your investment risk.

Investments in securities are spread across varied industries and sectors, thus reducing the risk associated with mutual funds. The fund manager helps you diversify your portfolio in order to make the most of your investment. Through diversification, the risk of a portfolio is reduced due to the different behaviour of the underlying assets. These assets can range from, equites to debt to gold funds. The main goal of investing is to create wealth and increase your income.

A mutual fund's value is determined by its underlying asset. The underlying asset can be either a debt investment, equity investment, liquid investment or gold investment. All these assets classes have different maturity periods, due to which the risk factor of the portfolio is reduced. The lows and the highs of the asset help fund managers determine the weightage of the portfolio.

Mutual fund value is determined at the end of the trading day and market fluctuations can impact the price of the mutual fund. However, this does not make the fund risky as the portfolio is diversified across several asset classes.

Disclaimer:
This is an investor education and awareness initiative by Nippon India Mutual Fund.
Helpful information for investors: All Mutual Fund investors have to go through a one-time KYC (know your Customer) process. Investors should deal only with registered mutual funds, to be verified on SEBI website under 'Intermediaries/ Market Infrastructure Institutions'. For redressal of your complaints, you may please visit www.scores.gov.in . For more info on KYC, change in various details & redressal of complaints, visit mf.nipponindiaim.com/investoreducation/what-to-know-when-investing This is an investor education and awareness initiative by Nippon India Mutual Fund.

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document. Language Disclaimer:
While utmost care has been taken in translating the article into respective regional language(s), in case of any confusion or difference of opinion, article available in English language should be deemed as final. The article provided herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional advice for the readers. The document has been prepared on the basis of publicly available data/ information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of loss of profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this article. "ABOVE ILLUSTRATIONS ARE ONLY FOR UNDERSTANDING, IT IS NOT DIRECTLY OR INDIRECTLY RELATED TO THE PERFORMANCE OF ANY SCHEME OF NIMF. THE VIEWS EXPRESSED HEREIN CONSTITUTE ONLY THE OPINIONS AND DO NOT CONSTITUTE ANY GUIDELINES OR RECOMMENDATION ON ANY COURSE OF ACTION TO BE FOLLOWED BY THE READER. THIS INFORMATION IS MEANT FOR GENERAL READING PURPOSES ONLY AND IS NOT MEANT TO SERVE AS A PROFESSIONAL GUIDE FOR THE READERS."

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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