The ABCs of Mutual Fund Investing

  Have you ever looked at the historical returns of a mutual fund and wondered why your own returns don’t match up? You are not alone. There is a well-documented phenomenon in personal finance known as the behavioural gap . This gap refers to the difference between the returns a fund or investment generates and the returns investors actually earn from it. The behavioural gap exists not because of the market or the economy but due to how investors behave. Emotions, market noise, and reactive decisions often prevent investors from capturing the full benefits of their investments. In this article, we explore what causes the behavioural gap, how it impacts long-term wealth, and what investors can do to bridge it. What Is the Behavioural Gap? The behavioural gap is the difference between an investment's performance and the actual returns an investor earns from it. This happens because most investors buy and sell at the wrong times. For example, they may invest in a mutual fund after ...

Becoming a mutual fund distributor is one of the lesser-known but highly rewarding career options in the Indian financial services industry. With low entry barriers and the ability to build a scalable, recurring income stream, it's a great choice for people who enjoy helping others with money management. But the big question on everyone’s mind is: How much can you actually earn as a mutual fund distributor in India ? Let’s dive into this in a simple, straightforward way. What Does a Mutual Fund Distributor Do? Before we talk about money, let’s quickly understand what a mutual fund distributor does. A mutual fund distributor is someone who helps people invest in mutual fund schemes. They guide clients on which funds to choose based on their goals, risk appetite, and investment horizon. They don’t manage the fund itself (that’s the job of the Asset Management Company), but they do help clients make the right choices and process their investments. To become a distributor, you ne...