Comparte Capital Investment

Mutual Funds & Investor Awareness

The absence of proper investor awareness may lead to a low profile

The Indian investors have too many investment products to choose from Mutual funds

Yes, it is true that mutual funds also carry risks like every other investment scheme. Still, why has Mutual Fund become so popular? It is because the investor is aware of its specific facts, and they make an informed investment decision to invest happily in Mutual Fund and make profits. And it is therefore always recommended for the investor to consult a mutual fund expert before making an investment decision to be aware. So let’s throw some light on the matter.

What is Investor awareness?

The companies generally use the term investor Awareness to describe how well their investors know their business in the investment market in general. As investors make investment decisions based on their awareness and knowledge, investors’ awareness means a lot to the companies. The absence of proper investor awareness may lead to a low profile amongst its competitors in the market and are a detriment to the business.

How much Investor awareness means to a company?

It means a lot. It is essential whether the investment community knows a company or not.

“Do investors know about your company?” If the answer is “yes,” it indicates that the company possesses “good investor awareness,” which means investors are aware of its products and services.

If the answer is “no,” that means a company has “no investor awareness” or “poor investor awareness,” and probably no one outside of the company knows the whereabouts of the company. The company has perhaps failed to create visibility in the investment community.

How much does Investor Awareness influence Mutual Fund?

What do Mutual Funds do? Mutual funds pool money together from investors and invest that capital into other lucrative securities such as stocks, bonds, money market accounts, etc. The rapidly growing Mutual Fund Industry has emerged as an essential financial sector that channelizes the savings of hundreds of population in equity and debt instruments. Moreover, it gives a platform to risk-averse investors who hardly take a high risk on their hard-earned money.

However, investment in mutual funds is influenced by investors’ awareness and perception of mutual funds as a means of investment.

How is this awareness created?

The Indian investors have too many investment products to choose from Mutual funds, and investors can highly consider investing in it to grab a good investment opportunity. To create proper awareness about Mutual Funds and the benefits of investing in mutual funds among the general mass, various Mutual Fund Asset Management Companies (AMCs) in India have been conducting Awareness Programmes on a regular basis.

What is the objective of Investor Awareness programmes?

The primary objective is to educate the investor about mutual funds and all the aspects. There are specific facts that investors need to know before investing in mutual funds, such as they have to keep their investment horizon and their risk appetite aligned with their investment goal.

The most attractive facts of Mutual Funds that every investor must know are:

  • The main attraction of Mutual funds is Diversification. Mutual funds offer investors the opportunity to diversify, spreading their risk over a wide range of investments.
  • Average investors get the opportunity to invest in funds that are professionally managed. Here fund’s manager shoulders this job of creating an optimally diversified portfolio.
  • The high demand and high liquidity of mutual funds make the purchase and sale of shares relatively easy.
  • Innumerable options of mutual funds offer a varied range of interests and investment needs that suits all kinds of investor in the financial market regardless of their goals and risk tolerance.
  • The cost of trading is also comparatively low as that gets spread across all mutual fund investors.

Final Recommendation

As applicable to any investment decisions, learning and knowing about the bulk of options available in the market is the best way to proceed. Financial advisors are someone whom you can consult and rely upon to be an informed investor once you have made up your mind to start investing.

That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.

With this one can say “Mutual Fund Sahi hai”,  so let me do Nivesh