Mutual Fund: These funds wreaked havoc, SIP of just Rs 10000 became Rs 12 lakh in 5 years

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Although we have told many times that mutual fund investment gives amazing returns, it easily gives returns ranging from 10% to 50, 55% in a single year, although it depends on what kind of mutual fund you are investing in. While investing in the scheme, mutual funds provide the opportunity to invest in many categories, these categories vary depending on the investment of the funds, the risk of the funds and the returns of the funds.

It is true that mutual fund investment is subject to market risks but it is also true that you are not investing in a single share, or a single category of funds, you can choose the risk as per your choice however this will also affect the returns.

Mutual fund investment also provides investment option for risk-tolerant investors, which is debt fund, here your money is not invested entirely in equity but in government bonds, gold, Govt securities etc., which has minimum risk compared to bank fixed deposits. Also gives higher returns.

 Mutual fund returns increase with compounding growth, hence a good amount of money can be accumulated even in small investments.

When you choose a mutual fund scheme, it is important to check all the parameters, which include fund returns, expense ratio, beta, fund manager etc.