Why mutual funds are not popular in India?

Bad past experience because of agents recommending wrong schemes and unrealistic returns. Mutual Fund industry has existed for more than 25 years in India, but its penetration is very low. The industry has been prone to mis-selling of schemes which has resulted in lack of trust amongst common people.

Why do people still use mutual funds?

Mutual funds pool money together from a group of investors and invest that capital into different securities such as stocks, bonds, money market accounts, and others. Among the reasons why an individual may choose to buy mutual funds instead of individual stocks are diversification, convenience, and lower costs.

Is it safe to invest in mutual funds in India now?

As mutual fund companies are regulated and supervised by regulatory agencies such as the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI), no fund house can abscond with the investor’s money. In short, a mutual fund house is as safe as a bank.

Is not reason to invest in mutual fund?

Traditionally risk-averse investors who used to deploy their money only in FDs and gold have now started investing in mutual funds….If You Don’t Want To Earn Inflation-Beating Returns.

Mutual Fund Category	Average Annual Returns In Last 10 Years
Small Cap Funds	16.75%
ELSS Funds	13.40%

Are ETFs riskier than mutual funds?

One of the ongoing discussions about ETFs is their risk profile relative to traditional mutual funds. While different in structure, ETFs are not fundamentally riskier than mutual funds.

What is the best growth stock mutual fund?

Here are the best Large Growth funds

Fidelity® OTC Portfolio.
Franklin DynaTech Fund.
Principal Blue Chip Fund.
Vanguard US Growth Portfolio.
Fidelity® Flex Large Cap Growth Fund.
Fidelity® Blue Chip Growth K6 Fund.
T. Rowe Price Growth Stock Fund.

What is the future of mutual fund in India?

Additionally, from the period between March 2020 to March 2025, the AUM is projected to be at 15% CAGR. Ashu Suyash, MD and CEO of Crisil said, “The mutual fund industry has seen a large rate of growth over the last 20 years, that growth rate has been a spectacular CAGR of 18%.