Impact of Covid on Mutual Fund & Trading #Infographic

Impact of Covid on Mutual Fund & Trading #Infographic

Almost everyone keeps a little amount of their money aside for uncertainties in the future. We call it ‘savings’ but many people do not realise that keeping money in saving accounts lose its value with continuous inflation. As inflation hits India every year, the value of your savings decreases by almost 4%. 

So to keep the purchasing power of one’s money intact, a person goes for various investment plans. These schemes are available in two categories. One is the Stock Market which makes you a partial owner of the company, Mutual funds, on the counterpart is a technique in which a professional invest your money to give you stable returns. 


Factors to keep in mind: 

● In the case of the stock market, you can commence trading yourself by creating a Demat account along with paying the maintenance fee. You need to have in-depth knowledge about the trading as no agency or an expert will be there to help you. However, in Mutual funds, this is not the case. The fund manager takes note of your requirements and takes decisions on your behalf by charging a nominal fee.

● Even if you have thorough knowledge about the stock market, the risk involved in it is way higher than the risk in mutual funds. The fund manager designs a systematic plan and allocates your fund in different bonds, debentures, real estate, gold, etc. With this, the manager help you invest safely.


 Conclusion 

While investing, keep in view the various thumb rules of investing, do not depend upon TV debates to prepare your investment plan, investing without proper knowledge or with bad AMCs could lead to disastrous results. 

The attached infographic gives an exact idea about the pros & cons of various investments, large cap- small cap companies, sectors of investment and a projection upon how pandemics like Covid-19 influenced the market. Happy Trading!

 
Impact of Covid on Mutual Fund & Trading #Infographic

infographic by: wisdomcapital.in

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