Myth one: you need a lot of money. You need ₹500. Myth two: mutual funds are only for the stock market. Debt funds, liquid funds and gold funds have nothing to do with shares.
Myth three: a fund with a lower NAV is cheaper. NAV is just the price of one unit; a ₹10 NAV and a ₹500 NAV fund can be identical in quality and growth. Myth four: past returns tell you future returns. They tell you how a fund behaved in the past, which is useful, and nothing about tomorrow.
Myth five: you must time the market. SIPs exist so you do not have to. Myth six: locking in is required. Only ELSS funds have a lock-in, and only because they give you a tax deduction in exchange. Everything else you can exit, though exit loads may apply early on.
Low NAV is not cheap, past returns are not promises, and ₹500 is enough to begin.
- What is a Mutual Fund?
- Why Invest in Mutual Funds?
- How Do Mutual Funds Work?
- Why Not Just Buy Stocks?
- Benefits of Mutual Funds
- Common Myths About Mutual Funds