Myths

vs

Facts

About Mutual Funds

Myth - 

Mutual Funds are only for wealthy investors.

Fact - 

Mutual funds are accessible to all investors, with some requiring a minimum investment as low as ₹100.

Myth - 

Investing in mutual funds is too risky.

Fact - 

Mutual funds have multiple categories with different risk levels, and diversification in mutual funds reduces risk.

Myth - 

You need to be an expert to invest in mutual funds.

Fact - 

Mutual funds are managed by professional fund managers, making them a suitable choice for both novice and experienced investors.

Myth - 

Mutual funds have hidden fees.

Fact - 

Mutual fund fees, including expense ratios and management fees, are transparently disclosed in the fund's prospectus.

Myth - 

You can lose all your money in mutual funds.

Fact - 

While there is a risk of loss, you can never lose all your invested amount.

Myth - 

Mutual funds are only for long-term investments.

Fact - 

While they are ideal for long-term goals, mutual funds also offer options like liquid funds for short-term needs.

Myth - 

Mutual funds and ETFs are the same.

Fact - 

While both are pooled investment vehicles, mutual funds are priced once daily after markets close, whereas ETFs trade throughout the day on like stocks.

Myth - 

Once invested, you can't withdraw money from mutual funds.

Fact - 

Mutual funds offer liquidity, allowing investors to buy and sell shares or units ■on any business day, though some funds may have exit loads for early withdrawals.

Myth - 

High returns mean the fund is good.

Fact - 

High returns can also indicate high risk. It's essential to consider the fund's risk profile, fees, and consistency of returns.