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  • Writer's pictureAnustup Kundu

Mutual Funds Simplified: Knowing the Fundamentals

News Desk, News Nation 360 : Anand Financial Services is a renowned financial advisory firm headed by Anand Gupta, the company's founder. Anand Financial Services provides investors with invaluable insights into the world of mutual funds, helping them to navigate associated risks and take advantage of potential benefits. Mutual funds are an essential tool in today's changing financial environment for people looking to accumulate wealth and meet their financial objectives. Anand Financial Services seeks to provide investors with the information and tools necessary to make wise investment decisions by emphasising empowerment and education. Anand Gupta emphasises the various risks associated with investing in mutual funds, each of which presents a different set of difficulties for investors' portfolios. Market risks are significant because they expose investments to possible losses during downturns in the overall economy. Even with nominal gains, inflation risks reduce purchasing power and diminish returns. Concentration risks increase losses in the event of unfavourable market movements and serve as a warning against overexposure to specific schemes or industries. Anand Gupta outlines the main justifications for investing in mutual funds. They provide tax advantages such as those under Section 80C of the Income Tax Act, long-term wealth creation through compounding, and ease of use through online and mobile investing. Furthermore, because mutual funds have low expense ratios in comparison to other investments, they are more affordable. He stated that the minimum investments in mutual funds are important in determining the costs and potential returns of an initial investment. He highlighted the vast range of minimum investment requirements that vary depending on investment objectives and management fees, from Rs 100 to lakhs of rupees. Funds with lower thresholds emphasise accessibility for retail investors, while those with higher minimum investments typically target institutional or high-net-worth investors. The greatest kind of mutual fund to invest in, in his opinion, is an equity fund. Equity funds have the potential to yield large returns by investing in shares of various companies. They typically outperform term deposits, debt-based funds, and bank deposits, despite the risk they entail due to market conditions. Given the gradual increase in stock prices over time, equity funds are best suited for investors seeking wealth generation and having a high-risk tolerance for long-term investments of five years or more.


Pic - Krishnendu Kundu

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