Understanding Mutual Funds, the layman way……

Mutual Fund is the word everybody relates to risk in general. This is because of a common tagline which follows every mutual fund advertisement either in print or online media. It says, ‘Mutual Funds are subject to market risks’.

This statement is absolutely true. But the real essence of this statement is not to make people suspicious of this product but to inform them about an important aspect of product. But people take it as a warning of not investing. Mutual funds do not sell on mis selling techniques so it is bound to inform people clearly, but because of this people are away from this product.

If people are so much conscious about warnings, why in the country, warnings such as issued by income tax are not heard. This is just mentality of people where they listen to only those things which are directly in relation to them.

Today, I want to make everyone understand what the essence of a mutual fund is.

See the following video to understand, what a mutual fund actually is, in an easy way, a way which everyone can relate to:

Understand Mutual Funds, The Pizza way….