Yesterday I started writing this but ended up writing a piece about my learnings as a Mutual Fund Investor and Distributor over the last 5 years.
So let’s get back to the task at hand:
There are 3 types of People in India currently:
- Who understand the Stock Market and SIP fundamentals. They know where to invest. How to invest. I recommend these type of people do Direct Mutual Fund investment without the involvement of a distributor.
- People with Money who are engaged in some other business as their primary occupation and who do not understand the stock market and finance. I recommend these type of people go to an Distributor to invest.
- These are the people who have no idea about the stock market. Generally people with low income and low education. They might or might not even have a basic bank account. They have limited risk appetite for investing and specific goals in life like child education and child marriage. They should definitely use a distributor to do goal based investing. Mutual funds is the best vehicles for goal based investing by using Balanced Advantage or Multi Asset or many such other fund types.