Mutual fund means when few or more people get together to club their funds and hand it over to an expert for management. Mutual Funds are broadly classified under two categories i.e. Debt and Equity. As of now, total Indian Mutual Fund Industry is Rs.12 Lac crore. Out of this Rs.8 Lac crore is Debt Mutual Funds and Rs.4 Lac crore is Equity Mutual Funds.
Anybody into 20% or 30% tax bracket must study Debt Mutual Funds otherwise you are paying very high cost of not having this simple knowledge. Irony is out of this Rs.8 Lac crore debt fund market, 80% investment comes from customers of 4 Metros. Meaning thereby that awareness of Debt Mutual Funds is very low in other parts of the county. Another question is Why people in Top 4 Metros invest in these Debt Mutual Funds. What do they know, which people in other parts of the county are not aware of?
Equity Mutual Funds have the power to give you 15% return in long run. Actually Property and Equity are two asset classes which can give more than 15% return, but we cant invest small proportions in property, which is definitely possible under Equity.