Riding on mutual funds for long-term wealth creation

Discover how professionally managed, well-regulated mutual funds help achieve financial goals through strategic market exposure.

- HITESH SONIT

As market-linked products, mutual funds have been prominent in the past three decades and even more so over the past five years. Mutual funds assets under management have risen at 19% compounded annually over the past five years to Rs 64.5 trillion. These figures attest to the popularity of these investment vehicles as wealth creators over the long term.

Mutual funds are well-regulated, professionally managed and relatively simple investment products.

For retail investors looking to take exposure to market-linked products for reaching their financial goals, managing their portfolio risks via suitable asset allocation and considering periodic sums for deployment, mutual funds are ideal.

Avenues to prosperity

For investors considering goal-based planning, mutual funds are well-placed to cater to their needs based on their own risk appetites - conservative, moderate or aggressive - or their time horizon - short, medium or long term.