Do you need Mutual Funds to build wealth? Find out here

Podcast Duration: 05:28

Hello friends and welcome to this podcast by angel broking.

Doston, kya aapne kabhi wealth building ke subject ke baare mein socha hai? Aapne financial aur wealth management ke topic par vichar kiya ho ya nahi, you must have thought at some point or another - ki how to make your wealth grow. Am i right?

Anyway, aaj hum is topic par detail mein baat karne ja rahe hain. Doston everyone wants to become rich today, lekin very few actually become rich successfully.

Ek din, Richa was talking to her friend Sushma - Sushma ne recently ek house purchase kiya tha, woh bhi within the lockdown. When Sushma told this to Richa, then Richa asked her - how did you manage to save up so much money? Sushma ne bataya ki agar usne sirf savings kiye hote, toh she wouldn’t have been able to buy a house today. So what was her secret? Actually, it wasn’t a secret at all! Sushma ne bola ki usne apne savings ka ek big portion ek stable mutual fund mein invest kar rakha tha, ever since she started working - aur ye baat 8 saal pehle ki thi. 8 saal mein sushma built enough wealth to buy a house - by investing in mutual funds.

Doston kya aapko ye story familiar lagi? I’m pretty sure ki aapne apne friends se mutual funds mein invest karne ki success stories zaroor suni hongi. Toh mutual funds mein invest karne se aap kya achieve kar sakte ho? Kya aap mutual funds se wealth build kar sakte ho? Doston hum in dono questions ka answer dekhenge, in the next few minutes.

Shuru karte hain by finding out what mutual funds are - basically, mutual funds market mein, existing securities mein kiye gaye pooled investments ko bolte hain. Imagine ki aap aur aapke 15 friends milkar ek investment shuru karte hain. Is investment mein aap sabhi apne paise ikatthe karte ho, and you all invest it in 5 different stocks - ye ek mutual fund ka example hai - now imagine this process, lekin aap aur aapke 15 friends ki jagah thousands of people are investing in one fund - that is what a mutual fund is.

So do you need mutual funds for wealth creation?

Short and sweet answer is simply - yes.

Let’s find out the nuances, and why mutual funds are one of the better vehicles for wealth creation.

Doston stock market mein equity investments par returns average around 16%. Lekin ye growth actually achieve karne ke liye aapko stock market ko study karna padega, and after much research, you will be able to invest in potentially high yield stocks.

Mutual funds aapko stock market ki growth wise ride karwate hain, lekin without the need to extensively research the market.

In fact, mutual funds duniya ke kuch top fund aur asset managers dwara manage kiye jaate hain. Isliye, you know ki stock market ki risks ke bawjood bhi, your money is in relatively good hands. This is cool, right?

Chaliye dekhte hain next point.

Mutual funds mein aap one time investments bhi kar sakte ho, aur regular small investments bhi - for example, on a monthly basis. Mutual funds aapki saving habits bhi build karte hain, aur aapki is habit ko generously reward bhi kar sakte hain. Lets see how!

Mutual funds are usually long-term investment vehicles. Isliye, market ki growth ke alawa, aapke funds compounding se bhi grow hote hain. That’s why, very long-term investments can help you multiply your wealth.

Lekin ‘a potential for higher growth’ is not all that mutual funds offer. This brings us to the next point.

Doston mutual funds transparently operate karte hain - iska matlab ye, ki aap in funds ka composition dekh sakte ho - yani ki aapke paise kin stocks mein invest honge, aur kis proportion mein. Saath hi, aap funds ka size bhi dekh sakte ho - in other words, how much money is already invested in the fund.

But more importantly, mutual funds mein aapko market ke sector-wise performance se asar nahi padega, kyunki ye funds apne-aap mein diversified portfolios hote hain.

Cool, isn’t it?

But this is not all - are you worried about your money getting locked in on your investments?

Mutual funds highly liquid bhi hote hain. Which means ki aapko agar apne paise in funds se withdraw karne hain, toh you can simply divest from the mutual funds, and retrieve your money directly into your bank account.

Apart from all these monetary benefits, mutual funds aapko ek aur, crucial benefit offer karte hain - and that is, tax related benefits.

Agar aapki income minimum taxable bracket se upar hai, toh your hard-earned money will be subject to taxes - which can make wealth creation more difficult.

Kya aapne ELSS, ya fir Equity-linked saving schemes ke baare mein suna hai?

Equity linked saving schemes se aap 1.5 lakhs tak ke tax deductions claim kar sakte ho - in schemes par 3 years ka lock in period hota hai - aur agar aap inse ek saal mein 1 lakhs se upar earn karte ho, toh 10% of these earnings are taxable. Cool, isn’t it?

Doston aaj ki podcast mein bas itna hi.

Is podcast mein aap ek cheez toh samajh hi gaye honge - mutual funds wealth creation ke liye ek complete solution provide kar sakte hain. Historically, mutual funds ne kai investment options ko outperform kiya hai.

You can also invest in mutual funds, and start your journey towards wealth creation today itself! Log on to to learn more about mutual funds, and how to invest in them!

Milte hain in the next podcast. Until then, goodbye from angel broking, and happy investing!