Making money
creates happiness and that is an excellent incentive. From last decade, people
have started thinking about they can save money for their future with proper
financial planning & investment. These days with the help of Internet it
has become easier to promote & get services for financial planning
& do trading on stocks with the help of Investment companies.
At the start of
every month, we are reminded about our expenses such as electricity bill,
telephone bill, EMI's, home loan, Insurance premiums & many more. We
all set reminders & track our budget to ensure that we meet the deadlines
before they are due to avoid any late fees or interest charges.
Do we ever think
the same way when it comes to investing? This is an important point which
I will cover in this post along with some insights on Mutual
fund investments & its benefits. The agenda of this post is to bring
awareness for Mutual funds & its benefit. In this post, I
will explain about the Mutual Fund Day (MFD) & Fund For A Friend (FFAF) initiative by
Reliance
What is Mutual Fund:
In simple words
"Mutual fund is an investment program usually run by an asset
management company that coordinates with a group of people & invest their
money in equity, stock markets, bonds & securities in order to provide
maximum returns on investment."
How Mutual Fund is different & it Benefits:
Anyone who
earns money through business, daily jobs & other modes can start in this
instrument. Most of us expect maximum returns on our investment, which not a
bad thing. Traditionally most people deposit their money in banks in form
Fixed & Recurring deposits, But
are we really getting optimal ROI through such instruments? The
answer is "No". Why?
This is because
the current rate of interest on bank deposit which is currently at 6-7 %
approximately is not enough to provide high returns on your idle money. Protection
of principal for a short term is the only benefit from traditional bank deposits.
When it comes to saving for your future do we really bother about withdrawing
it in a short duration of time? The answer is again "No".
Now coming to
the people who want to invest in the stock market but don't know anything about
the way it works. They don't know which equity or stock is giving high returns
and they don’t have the knowledge about the trends of the market. Some
people lose their money by speculating in the market & investing without
any knowledge & end up losing their money. This is where mutual funds
come in handy to rescue you from all this. A fund manager will do the job for
you with the help of research team that will continuously analyse the
market trends and will select suitable investments to achieve your
goals.
What is Mutual Fund Day (MFD):
Har Mahine ki tarikh saat, Kijiye Mutual Fund ke aadat se ki shuruat !
TThe MFD is an
initiative by Reliance Mutual Fund to aims to reach out to the all the
investors in India, to build awareness & consideration towards Mutual Fund,
so as to help investors to fulfil their dreams by investing in an asset class through
various Investor Awareness, Camps & Media led events Reliance Mutual Fund
is connecting the dots to educate the mass of our country to inculcate the
habit investing regularly.
Just like we
celebrate World Environment Day, Mother’s Day & important days in our life,
we should celebrate 7th of every month as an investment day #MFDaysOn7th.
What is Fund For A Friend (FFAF):
FFAF is a quiz
in form of a mobile application where you can help your friends to achieve
financial goals by answering few questions regarding their nature. Based on
your answers the app will find out what profile works best for him.
Recognizing the need
for financial independence we should engage more with such initiative &
share the information with our family, friends & colleagues. Let me know in
case you have any queries related to Mutual Funds & I will try to help as
much as I can.
