The ABCs of Mutual Fund Investing

In today’s digital world, investing in mutual funds is just a few clicks away. While this convenience has empowered many investors, it has also led to a growing trend of DIY (Do-It-Yourself) investing — often without fully understanding the consequences. A mutual fund distributor is more than just someone who helps you invest — they help you stay on track, avoid costly mistakes, and align your investments with your life’s financial objectives. If you’re managing your investments alone, he re are the top 5 mistakes investors commonly make without the support of a professional distributor : 1. Chasing Returns Instead of Focusing on Financial Needs Many investors fall into the trap of blindly investing in the “top-performing” fund of the year, based purely on past returns. This return-chasing behavior often leads to disappointment, as performance can vary and past success doesn't guarantee future results. A mutual fund distributor helps you identify investmen ts that suit your ...

Investing in mutual funds has become one of the most popular ways for Indians to grow their money. With a variety of options available in the market, choosing the right type of mutual fund can be overwhelming—especially if you’re just starting out. In this article, we’ll break down the different types of mutual funds available in India, explain how they work, and help you understand which one may suit your needs best in 2025. What Are Mutual Funds? A mutual fund is a pool of money collected from various investors, which is then invested in financial instruments like stocks, bonds, or a mix of both. These funds are managed by professional fund managers from Asset Management Companies (AMCs), and they’re regulated by SEBI (Securities and Exchange Board of India), ensuring transparency and safety. You can start investing with as little as ₹100 through platforms like Groww, Zerodha Coin, Paytm Money, and others, making mutual funds accessible to almost everyone. Classification of Mu...