Mutual Funds in India has come a long way since the time it came to be considered as one of the most viable investment instruments in the country after the market opened up to the world.  Once considered as the last option in every investor 's list of things to do for the purpose of generating personal wealth, Mutual Funds in India is turning into a promising option that models itself on the very fundamental tenet of investment: never put all your eggs in one basket. Mutual Funds is that one golden swan that inevitably places all its eggs in different baskets.
 
What is Mutual Funds?
It is as sweet as the days spent in bunking college and waking up the neighbours.
 
Remember as teens, how we all were a part of a friend circle, because back then it was the coolest things to do? Helping out each other, chatting into the wee hours of morning, and spending hours together at the park only with the simple expectation of having the same set of individuals to fall back on when you would need them the most. Chances are, some of those friends are still around, always ready to lend a helping hand. Mutual Funds are very much like that.
 
A Mutual Fund is a common pool of savings, contributed to by various investors, that 's invested in different types of funds: equity, debt, hybrid etc. And they are managed by asset management companies registered with SEBI. In other words, while investing in Mutual Funds, you don 't have one fund to lean on; rather, you have multiple funds to turn to as they mature over a period of time. And who else better than trusted wealth managers or certified brokers to help you identify these funds.  With some portion of your investment sum set aside for these different MFs spanning across industries, you can keep investing systematically (move monies from one MF to another, or discard one and adopt another depending on various factors), so that tomorrow you don't lose all your hard earned money if one industry fails.
 
Mutual Funds in India adhere to strict regulations that are constantly updated to suit the needs of investors in the country. Any Indian citizen, NRI, HNF, company, trust, firm etc. can invest in Mutual Funds in India. You can invest by getting in touch with agents, or directly going to the MF office, or the best way: compare different MFs and select one online.
 
What is the climate like for Mutual Funds in India?
The year 2016 seems to be bullish on the MF Industry and the Indian economy as a whole. The new Government is not only trying to bring about administrative efficiency but to put in place new policies that will revive the economic growth in the shortest possible time. The Mutual Funds industry in India is expected to continue growing with assets crossing the Rs 20 lakh cr mark by 2018. Take the following stats from this year into view:
  • The combined assets of Mutual Funds in India increased by 4.2 % to $15.72 trillion in March, according to Investment Company Institute 's official survey of the Indian MF industry;
  • Several long-term funds like equity, hybrid, and bonds had a net inflow of $14.96 billion in March, versus $8.48 billion in February;
  • Equity funds observed an outflow of $9.61 billion in March compared with an inflow of $8.81 billion in February, while hybrid funds posted an inflow of $3.17 billion in March compared with $1.46 billion in February;
  • Taxable bond funds had an inflow of $15.93 billion in March as opposed to an outflow of $3.56 billion in February.
What to bear in mind while
Shortlisting and comparing the right funds make up the most important phase of investing in Mutual Funds in India.
  • Conduct proper research with regards to assert allocation that best reflects your needs;
  • Look and compare different MFs on the basis of their past performance and investment philosophy. This can be done by referring to the shareholder reports provided by AMCs;
  • Before investing in a fund, you should be certain about your financial goals. The more money you need, the more should be the risk profile;
  • Figure out what 's the time limit for returns;
  • Observe yourself and identify your risk profile. It is a little time consuming and can be done correctly with inputs from a certified professional, but once understood you can find out what kind of risk you are comfortable with.
So, wake up to this highly mature investment vehicle that 's taking the nation by storm. After all today, everybody 's generating wealth and everybody 's looking to turn to trusted options for generating even more wealth over a period of time. And what better than MFs for the job.