5 common myths about Mutual Funds busted:

  1. It requires large sum of money to invest: No, You can start with as little as Rs. 500 a month.
  2. Mutual funds only invest in equities: MFs as well invest in liquid funds, debt funds and hybrid funds which are a great form of diversifying your portfolio.
  3. SIPs mean you will never lose money: In long run, you will not, but in short term, it is normal to rise and fall.
  4. You can’t go wrong with five star rated funds: Past performance is no indicator of future performance.
  5. You need to be an expert: People you are entrusting your money with are the experts whom you need to believe.

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