Mutual funds offer transparent, cost effective investment options to all investors: Amfi
Mutual funds offer one of the most transparent and cost effective investment options to all categories of investors, irrespective of gender or financial constraints and other considerations, Surya Kant Sharma, Senior Consultant - North India, Association of Mutual Funds in India (Amfi) said on Thursday.
"To counter COVID-19 type challenges in life, financial planning has to be an integral part of wealth creation," Sharma said while delivering the keynote address for a webinar on ’Strategy for managing personal finance including mutual funds during and after COVID-19’.He said each family should maintain an emergency fund for catering to basic needs for at least 9-12 months to safeguard against unforeseen developments like the COVID-19 pandemic.Mutual funds provide not only short-term investment options but also medium-term and long-term investment solutions for sustained wealth creation for all investors, he said."Even during distress situation like the ongoing COVID-19 pandemic, investors have the option to continue, defer, suspend or discontinue their investments in mutual fund schemes," Sharma said.
Investment in mutual funds paves the way for better return than a savings bank account, he added.
When the market is volatile, mutual funds provide opportunity to switch over to debt funds for reasonable returns even during difficult times, he said, adding that it also extends handy liquidity in the era of difficult times.Amfi is making efforts to share updated information about performance of all mutual fund schemes on its website and it emphatically conveys in all the advertisement that investments in mutual funds are subject to market and systematic risks, Sharma said.
Source : Economic Times