6 mutual fund myths you should stop believing
1/6
Mutual funds are only for experts
Many people think mutual funds are too complicated. While in reality, mutual funds are designed for everyday investors, and professional fund managers handle the research and investment decisions.
2/6
You need a large amount to start
You don’t need lakhs to invest. With Systematic Investment Plans (SIPs), you can start with as little as Rs 500 a month and build wealth gradually.
3/6
Mutual funds guarantee returns
Unlike fixed deposits, mutual funds don’t offer guaranteed returns. They are market-linked, which means returns can fluctuate. But over the long term, they can help beat inflation.
4/6
Only equity mutual funds exist
Mutual funds are not just about the stock market. There are debt funds, hybrid funds, index funds, and even liquid funds that suit different risk levels and goals.
5/6
SIPs eliminate all risks
SIPs reduce market timing risk by spreading investments over time, but they don’t remove risk entirely. Long-term investing and choosing the right fund are key.
6/6
Past performance guarantees future returns
Just because a fund has done well in the past doesn’t mean it will continue to do so. Look at consistency, expense ratio, and fund strategy, not just past numbers.