Nov 06, 2018 09:32 AM
6503 Views
Having an experience of over 25 years in Financial Services field, I can vouch for the fact that Mutual Funds are an absolute must for everyone's portfolio. They are "Bilkul sahi".
A typical flaw in investment decision is the delay. When a youngster starts his career, he thinks he has lots of years to work before he retires. Thus, he keeps on delaying his investment decisions. He forgets that Law of Compounding works best when applied over a long-term.
To give an example, if a youngster starts his career at 21 years of age and starts investing in SIP(Systematic Investment Plan) of Rs 5000/ per month till retirement age of 60 years, then he will get Rs 3.9 crores if his fund portfolio earns a return of 11% per annum(which is very realistic - inspite of volatility of markets in short-term).
So, I personally think Mutual Funds are must for everyone - more so for long-term investors.
