What is Mutual Fund Sahi Hai?

  • Rudri Rawell
  • Oct 12 2021
  • 6 minutes
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Like all investments, mutual funds come with both positive and negative aspects. Investors should carefully assess their investment needs against the available options in a mutual fund investment before making a decision. The Association of Mutual Funds in India (AMFI) is a self-regulatory body for mutual fund houses in India. This organisation came up with a campaign called ‘Mutual Funds Sahi Hai’.

With this campaign, AMFI aims to promote mutual funds across India, especially as a future financial planning tool that can look after different life events of investors. The campaign also projects ethical and professional standards, followed by the mutual fund industry. The idea of MutualFundsSahiHai campaign is to create awareness among investors while promoting mutual fund products through various channels. The campaign primarily focuses on television advertisements. 

How did the mutual fund sahi hai campaign start?

Historically, Indian investors have preferred investing in physical assets more than financial savings. However, in the past few decades, this trend is seen to be changing with more preference towards financial savings. This is primarily done with the objective to beat inflation. With equity mutual funds, for example, investors can gain far higher returns when compared to traditional saving forms. 

The Association of Mutual Funds in India (AMFI) launched ‘Mutual Funds Sahi Hai’ as an investor awareness campaign, which turned out to be a success. AMFI is known to have launched several campaigns over the years to build customer confidence and pass on education to investors while guiding them on the concept of mutual funds. It focuses on strengthening the mutual fund industry in India to imbibe higher professional standards along with a constant focus on ethics. It also aims to promote and protect investor interest for long-term benefits.

How mutual fund investors benefit from ‘Mutual Fund Sahi Hai’ campaign

Mutual fund investments come with certain risks due to market uncertainties and frequent volatilities. Also, a fund’s performance depends on how well the fund manager is equipped for decision making and devising the right investment strategies to protect investor’s interests while ensuring safety of capital. Every investor expects that their investment grows over time and they fetch returns as expected. Thus, it is important that every mutual fund house communication is as per SEBI guidelines and AMCs follow the rules designed by AMFI to help and guide the investing population.

In an effort to grow the category on the one end and educate the investor on the advantages of investing in mutual funds, AMFI is moving in the right direction to help all the mutual fund brands. While the ‘Mutual Funds Sahi Hai’ campaign is working towards achieving their end objectives, we also need to understand how these campaigns have helped the mutual fund brands and what kind of communication the various mutual funds brands are devising to engage with the audience for their brands.

Benefits of investing in mutual funds

Some of the noteworthy benefits of investing in mutual funds are:

1. Managed by fund managers

The primary benefit of investing in mutual funds is that these are managed by fund managers who strategize investments to maximise returns for investors. Fund managers are hired by AMCs based on their experience and success in managing funds to generate above par returns.

2. No need for market knowledge

Another benefit of these investments is that anyone can invest in them, irrespective of whether one has market knowledge or not. This is because investors can easily rely on fund managers to look after the investment decision making in a mutual fund.

3. Possibility of inflation beating returns

Mutual funds, especially equity funds, have the potential to generate inflation-beating returns. For these, investors have to stay invested for a longer duration and be prepared to take on some level of risks.

4. Caters to all risk profiles

Risk-averse investors have the option of investing in debt funds, since these are often low-to-moderate risk. Investors who want higher returns and are willing to take on higher risks can consider equity funds, especially for long-term investment. 

5. Option to park surplus funds

Investors who want to park their surplus funds can consider investing in liquid funds, like debt funds, and earn higher returns as compared to savings bank account returns.

Conclusion

Among all the investment options, mutual funds are one of the most preferred these days, considering the wide variety of fund options to choose from. Every investor can find a fund that suits his/her specific requirements. These can allow an investor to design a suitable investment portfolio that matches personal investment profile and overall objectives.

FAQs

What are mutual funds?

Mutual Funds are investment avenues that pool money from investors to further invest it in various market instruments as per the fund objective. Each fund is professionally managed by qualified fund managers who select securities on behalf of investors and ensure maximum returns while prioritizing investor benefit

Who should invest in mutual funds?

Any investor who would like to park his/her funds in investment avenues that are professionally managed with transparent risk profiles should invest in mutual funds.

How to invest in mutual funds?

To invest in mutual funds, you can download the Finity app on your smartphone and gain access to a wide variety of fund options to choose from. The app allows you to choose fund options as per your risk and return expectations along with investment time horizon.

Is MutualFund SahiHai a mutual fund scheme?

No, MutualFund SahiHai is not a mutual fund scheme, but a mutual fund campaign launched by Association of Mutual Funds in India (AMFI). This campaign aims to spread awareness about mutual funds among the large investor population in the country.

Should I invest in stocks or mutual funds?

Stock investments are ideal for seasoned investors who are familiar with the markets, while mutual funds are suitable for both novice and seasoned investors. Mutual funds are managed by fund managers who do the securities selection, whereas stock selection has to be done by the investor himself/herself.

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