Axis MoneyPlex Knowledge Nugget - 52

6 Reasons Why You Should Consider Mutual Fund Investments

Have you ever wondered why some people who weren’t as wealthy a few years ago are now financially stable and have even secured the children’s future financially? The truth is most of them were effective financial planners who had a diversified investment portfolio and were regular with investing. Yes, if you want to achieve financial stability in the future or are looking to improve your existing financial status, you too may have to first understand the art of financial planning.

You are young and healthy and taking care of your entire family’s expenses. But due to some unfortunate events if you fall ill and your monthly source of income comes to a standstill, have you ever thought how you will be able to manage the daily expenses? If you have a plan B that means you are already good at financial planning, but if you have absolutely no idea what you will be doing if such an event occurs, it means you may have to make a financial plan. A lot of people feel that financial planning is vain and that you need to just save enough so that you can take care of your future expenses. But have you ever wondered how your savings will be able to tackle inflation?

For example, a half litre of packaged water bottle cost Rs. 5 fifteen years ago, but today it costs Rs. 10. A decade ago, a fancy meal at a decent restaurant cost anywhere between Rs. 1000 to Rs. 2000. Now the same would cost anywhere between Rs. 3000 to Rs. 4000. These are just a few examples of how inflation is on the rise and the value of rupee is going to diminish with time. That also means that just saving a certain portion of your income isn’t going to be enough in the long run. You may have to invest in such a scheme that it potentially multiples in the long run and helps you sustain in future.

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Statutory Details:?Axis Mutual Fund has been established as a Trust under the Indian Trust Act 1882, sponsored by Axis Bank Ltd. (liability restricted to ?1 Lakh).?Trustee:?Axis Mutual Fund Trustee Ltd.?Investment Manager:?Axis Asset Management Co. Ltd. (the AMC)?Risk Factors:?Axis Bank Ltd. Is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.