Mutual fund investing is simple and thats why a lot of people invest in it and thats why it's AUM I.e. Asset Under Management has hit at all-time high of Rs 66.70 lakh crore in the month of August. The thing is people thing thar they can earn quite a big amount of money in stocks but not all people can dedicate a lot of time on the stocks.
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Because stocks need constant monitoring and you need to spend time on studying the market too. On the other hand the mutual fund investment is quite simple. Take a fund and invest in it every month. The returns are quite good too, getting above 12% year on year basis is great for wealth creation. So why run for the extra 1-2% and spend your time when you can simply invest via Mutual Fund.
And that's the reason the AUM of mutual fund is continously rising. I know in this also people are there who invest via some agent which is perfectly fine. Because even today a lot of people in India doesn't know about stock market or mutual fund. The mutual fund agents are doing great to educate the people who doesn't have access to internet. I know the rise of internet helps you to understand the financial products better because of the finfluencers.
But still most of the mutual fund industry run by agents. They are actually doing a great thing in helping fellow citizens to invest in market. And that's the reason we have such a huge money inflow in the market. In my case too 80% of my monthly investment goes through SIP in mutual fund and that's great for me. Till now I am able to generate 19% returns in last 8 years and mind it, it includes the debt too. If I didn't had the debt, the returns could have been above 25%. But I wanted to have some stability and that's why the debt.
