There are different types of days to celebrate whatever is deemed as special. For example – Valentine’s Day is for honouring love, Fathers’ Day is for acknowledging fatherhood and even a World Post Day to recognize the service of postal departments all over the world. Most of these days result in money being spent for buying a card or a gift. However, there is only one type of day which does not demand that money be spent from one’s pocket. In fact, it emphasizes on investing money so that one may be able to create wealth over a longer period of time. This day is known as Mutual Fund Day.
Over the last 2 decades, mutual funds have been the favoured investment instrument of small investors to create substantial wealth. However, according to a survey commissioned by SEBI, hardly 1.4% of rural households are aware of mutual funds and only 9.7% of urban households consider mutual funds as an investment destination. (Source: http://profit.ndtv.com/news/savings-and-investments/article-95-of-indian-households-prefer-bank-deposits-over-mutual-funds-survey-1677750)
To improve this situation, Reliance Mutual Fund has conceptualized Mutual Fund Day (MFD) and Fund For A Friend (FFAF).
Mutual Fund Day
Through Mutual Fund Day, Reliance Mutual Fund aims to reach out to all the investors in India, to build awareness & consideration towards Mutual Fund, so as to help the investors fulfill their dreams by investing in the asset class.
Several individuals display exemplary discipline and dedication towards paying EMIs on pre-defined dates. But EMIs do not assist in wealth creation. If one follows the same practice while investing then it is possible to build a considerable corpus over a period of time. The Mutual Fund Day is celebrated on the 7th of every month for ensuring that many more Indians get introduced to investing in mutual funds and stock markets.
A responsibility that most of us who are well versed with investing in mutual funds need to take up is to educate our friends about the need to begin investing in mutual funds. Let us consider some investing scenarios faced by our friends:
Being risk averse they prefer parking their corpus in bank deposits. The low interest offered by bank deposits enables inflation to eat away their savings over a longer period of time
Sometimes, due to error in judgement, they invest in volatile financial instruments on the basis of tips and end up losing money. This happens often when one invests directly in stocks without understanding the fundamentals.
There are those investors who invest in mutual funds through Systematic Investment Plans (SIP) but do not invest a lumpsum amount in liquid Mutual Funds though it gives better returns than bank deposits.
We all get reminded by our banks when the EMI date approaches. Let 7th of every month serve as a gentle reminder for us all to not only focus on investing wisely but also spreading the goodness of investing.
(Image Source: https://in.pinterest.com/pin/563020390889685554)