Whenever I think about mutual funds, the first and only thing which comes to mind is the statement ‘Mutual fund investments are a subject to market risks. Please read all scheme related documents carefully before investing’. Other than that I was always very dodgy about how to grow my savings and where to invest, till The Blogger’s meet which was organised by Reliance Mutual Funds. This event changed my entire perspective on investments and financial instruments.
The event’s 3 speakers; Himanshu Vyapak, Prashant Pimpale and Sameer Desai from Reliance Nippon Life Asset Management, spoke so simply that even first time investors understood the various nuances of financial planning.
They highlighted the notion the common investor holds regarding the risk factor in mutual funds, but what needs to be considered here is the actual gain made. Mutual funds not only provide higher returns during positive market conditions but since they are managed by professional fund managers, they make sure your investments are protected even in adverse situations.
According to an analysis, out of all Indian investors, only 3% invest in mutual funds and the remaining 97% invest in Fixed Deposits.
The biggest oversight that many of us make is not calculating the tax payable on FDs, the rate of inflation which can further reduce the gains made from FDs and lower liquidity they provide as against mutual funds.
Prashant Pimpale, a Fund Manager with Reliance Mutual Funds gave us information about debt portfolios, investing in equity and ETFs. While Sameer Desai threw light on ETFs (Exchange Trade Funds). He also made us aware of the risks of investing in mutual funds, which is something that scares many of us away. But, if we know the risks and then take a calculated decision, we are bound to benefit.
This event played a big role in encouraging me to consider mutual funds as an investment instrument in my financial kitty, and how the risks can be managed smartly to achieve our various life goals.
To motivate the remaining 97% of the population to take their first step towards this instrument, Reliance Mutual Funds has come up with the idea of Mutual Fund Day (MFD).
MFD is observed on the 7th of every month. Through MFD, Reliance Mutual Fund aims to reach out to as many investors in India, to build awareness & consideration towards Mutual Funds, so as to help them fulfil their financial dreams.
Financial independence is an imperative requirement in today’s time, and one shouldn’t have to wait till half their life is over, to be able to achieve that. If one starts investing early and even in small amounts, one can create a strong monetary backup for themselves. Mutual Fund Day is all about getting people there.
Another very useful initiative taken by Reliance Mutual Funds is Fund for a Friend. This initiative suggests the best suitable fund for your friend. Here you have to take a quiz based on the knowledge that you have about the likes and dislikes of your friend. Reliance then analyses the answers and suggests the best suitable investment plan for your friend. Seems like the perfect friendships day gift!
This quiz is active on almost all leading social media sites and is not even very time consuming.
All these efforts taken by Reliance have been extremely successful so far. With innovations like Mutual Fund Day and Fund for a Friend ahead of them, Reliance is doing a great job at demystifying the world of mutual funds for the layman.
Will keep you posted when I start my first SIP with them. ;)