Misconception 3: Investing in several mutual funds offer better diversification.

Fact: - A person will be able to track his investments only if he has about 4 numbers of mutual funds. Investing in mutual funds is an easy process only when you know the facts behind it. Mutual funds by its nature offer better diversification and holding a large number of funds are always not recommended.

Misconception 4: - New Fund Offer (NFO) at 10 is very cheap.

Fact: - The most discussed misconception with every investor is NFO. It’s thought that by getting more units of a mutual fund, your profit will be more but that’s not true. If that would be the case then funds like HDFC Top200, DSPBR top100 Equity and BirlaSunLife Frontline Equity would have been struggling to convince investors and generate profit. But their performance itself speaks the truth. Fund Performance rest on Investor Risk Appetite, Portfolio of Stocks, Fund Manager, Expense Ratio and Other factors as well. Higher Units does not always guarantee Returns.

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