Answer / shash

The risk and returns in any financial instrument have a
direct relationship.i.e. higher the risk, higher is the
returns.
In the case of indian economy growing at the rate of app. 9
to 10%,where the indian corporate sectors have major
contribution.Putting the money in such a financial products
which invest the money in such sector, will give more
returns.Also it seems less risky considering the global
economic scenario.
Also the money management by expert will certainly minimise
the risk as compared to the investment by yourself.
The returns you get in such instruments is as good as 20-
50% of your invested amount.
so taking little more risk, you can at least double the
returns.

Answer / shrikant uttam bade

Its very simple to understant logic behind investing in MF
rather than any nationalised bank while putting money in
bank they are holding our money for one year and giving
interset rate of 9.5% suppose u r invement amount is Rs.
10000 u r getting 950 Rs as intrest but we should keep in
mind that inflation rate is 11.45% means which 11.45% on
10000Rs i.e. 1145 on u r investment amount its shows that
actaully u r in loss of 1145-950= 195 Rs i.e. u r not
earing anything while bank is using u r money for one year
and they r making profit out of it.
if we consider MF Higher risk higher return so MF giving
opportunity of

Proffessional expertise for fund managemnt
Risk diveresification
portfolio managment

Answer / p. anil babu

Investing in a Nationalised bank which give u 9.5% annum but
Investing in Mutual fund gives more returns because of the
Equity and Debt Market returns are very high, but in
mutual funds capital is gurantee. If we take little bit
risk high, the returns are very high.

Answer / guest

At present most of the Banks are proving interest @8.5%
whereas the return from Mutual Funds are increasing if you
see the last three years trend. Nowadays the policy is if
you want to gain more take more risk. As per my opinin the
investor should not put all the eggs in asingle bucket. He
should invest in Mutual Funds as well as in FDs of Banks.
This will help him to be comfortable and could earn maximum
income at minimum risk.

Answer / pravin

if u invest in mutual fund u will recieve fluctuating
dividend every month for e.g-(LIC MIP-monthly income plan)
and there r many schemes r there. And the benifit is u will
recieve dividend and also more amt. as compare to ur
invested amt.And in bank u will get 9.5% when u invest in
FDR. And here u can with draw ur money any time.

Answer / swaroop satyam .k.s

investing in mutual funds is for those people who are
interested in some what trends of the stock market and are
not ready to take more risk or not enough knowledgeable,
and in reality mutual fund units are paying the returns
quite good compared to the 9.5% returns p.a. and it's safe
even.... mf units can be graded high with respect to risk
and return in a capm model.

Answer / saumyajit

Investing in Mutual Fund, specially the ones that invest in
both Debt and Equity lets you diversify your investment and
also lets you get the benefit of the high returns of the
capital market which some cases are more than hundred
percent.Also you get the regular returns from the investent
in debt securities.


(Note: We should invest more in mutual funds specially now
as more the FIIs' sell of our own mutual fund companies can
invest and stabalise our market and make way for sustained
growth.)

Answer / sanchit

Because mutual fund are giving more return with little risk
and and here u have the flexibility to wihdraw ur money
whenever u want but in banks if u have made fixed deposit u
are bound to complete he period of fixed deposit. and
seeing the current scenerio where inflation rate is high
i.e. 11.5% invesing in bank will eat up your money because
inflation is even higher than he return so it is more
profitable to invest in mutual fund and to amke your money
grow.

Answer / pravin

see there are many plans in MF(mutual fund) like-1)MIP
(monthly income plan) in this plan company has given some
amount monthly as a interest.2)locking scheme plan in this
plan company has given almost double amount whatever amount
u invest, within 3yrs...

Answer / ajit kumar bepari

Becuase this save my money and give me a good interest.

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