Is investing in mutual fund risky ?
This is the common question, I have faced throughout my 3 career. Still, I never get bored to answer it because I love this question.
Hello everyone, I am Yashpal and I write a personal finance planning blog.
Reason for loving this question is, you showed interest in knowing about this product amidst reducing interest rates and increasing inflation.
This is the right time to think about this question if you wished to provide for future goals from here.
Reducing interest rates are making people to find other investment avenues.
Once Fixed deposits used to get doubled value in 5 years and now , You can not expect the same even in 10 years.
This is not surprising if you ask me. If you wish to know the reason, my answer would be to simply google yourself interest rates in USA and Japan.
Not more than 3%. We also wish to get developed like first world, right. And you must have witnessed we are moving on that path.
So basically not investing in inflation beating instruments like mutual funds and stock market is surely risky. Because in the long run equity beats inflation rate and give you real returns on investment which FD or other debt instruments can not provide you.
Why developed countries have very low interest rate is another big topic in itself that deserves separate post on it. I will soon post on it. If you are interested to know more about mutual funds and finance planning then get this free finance planning course.