‘Mutual fund investment is subject to market risks. Read the offer document clearly before investing’ – this is the statement that you will always come across when investing in a mutual fund in India. This is but true that not only mutual fund investment but also other investment options available in the market are subject to risks. Once you know how to choose right, the risk level gets lowered.
For many people, investing in mutual fund in India means safe investing. They feel that the decided amount of money put in monthly quarterly or yearly or a single lump sum grows over time, say a period of one year or two years or as decided. The money then can be withdrawn or invested further. The return on the mutual fund investment made is more than the money put in the savings account or fixed deposits in banks. Many a mutual fund of India such as those of HDFC, SBI, Tata, Reliance, Birla Sunlife, promises high returns.
Again investing in a mutual fund India will not require you to take too much of a headache as is required in intra day trading of stocks.