Mutual Funds – A Better Way of Planning your Investments​

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Mutual funds are steadily making an entry into the household savings with an increased awareness about financial planning and higher efforts towards promoting mutual funds as an investment product. Further, the availability of a wide range of mutual fund schemes makes it easier for you to choose the mutual fund scheme to suit your financial goals. Moreover, with everything becoming more expensive, investment in traditional instruments might not live up to your expectations. This is where investments in mutual funds can be beneficial. Whatever your goals might be, there are mutual funds to help meet them.

Choosing the right mutual fund, hence, becomes the first important step in achieving your financial goal.

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When it comes to mutual funds, you can make money in three possible ways: Income earned from dividends on stocks and interest on bonds. A mutual fund pays out nearly all of the net income it receives over the year (in the form of a distribution). An increase in the price of securities (called a 'capital gain').

In a nutshell, mutual funds are safe. Investors should not be worried about short-term fluctuations in the returns while investing in them. You should choose the right mutual fund, which is in sync with your investment goal and invest with a long-term horizon.

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