{"id":637,"date":"2024-04-18T07:30:42","date_gmt":"2024-04-18T07:30:42","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=637"},"modified":"2026-03-02T19:31:50","modified_gmt":"2026-03-02T19:31:50","slug":"does-investing-in-mutual-funds-really-good-or-is-it-over-hyped","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/18\/does-investing-in-mutual-funds-really-good-or-is-it-over-hyped\/","title":{"rendered":"Does investing in mutual funds really good, or is it over hyped?"},"content":{"rendered":"\n<p>It might be fashionable to say that something is overhyped. But if one takes a closer look the numbers, the truth will be apparent.<\/p>\n\n\n\n<p>Many Mutual Funds have given good returns compared to any other instrument, even the index. Here is a view of the rolling 5 year returns of Multicap funds vs the benchmark index of Nifty 500.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-e55903bbce02c651971ce1ca2f67de72\" alt=\"\" \/><\/figure>\n\n\n\n<p>Let us look at one fund in detail, this time vs the Nifty 50 : Axis Blue Chip Fund (there are many which did even better):<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-fce24164cd8ed9349d1ec4554b8c21cb\" alt=\"\" \/><\/figure>\n\n\n\n<p>Over a five year period, this fund has given about 15% returns vs Nifty which has given about 11% (as of date). I can repeat this with other funds too, but the basic point is that:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Good equity funds have over time done better than other options. Index funds are good too, but the Indian market has room for \u2018good alpha\u2019 for several years more.<\/li><li>Most people do not have the time to invest in specific stocks.<\/li><li>Direct plan funds do better than regular plans and you get about 30% to 40% more in the long run.<\/li><\/ol>\n\n\n\n<p><strong>Bottomline<\/strong>:<\/p>\n\n\n\n<p>Invest in good direct plan equity mutual funds via systematic plans and let compounding take care of the rest for you. These are time tested truths, like eating healthy food and getting daily exercise.<\/p>\n\n\n\n<p>Happy Investing! In case you are already invested, consider<a href=\"https:\/\/www.jama.co.in\/app\/import\/?utm_source=quora&amp;utm_medium=answer\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;switching to direct plans<\/a>&nbsp;to get more out of your hard earned money.<\/p>\n\n\n<!-- mw-cta-block -->\n\n<div class=\"mw-cta-block\" style=\"background:#EEF3FC;border-left:5px solid #1C52A0;padding:22px 26px 20px;margin:36px 0 24px;border-radius:0 10px 10px 0;\">\n  <p style=\"margin:0 0 4px;font-size:11px;font-weight:700;color:#276FC4;letter-spacing:1px;text-transform:uppercase;\">Maxiom Wealth \u2014 Free Tool<\/p>\n  <h3 style=\"margin:0 0 10px;font-size:19px;font-weight:700;color:#113E81;line-height:1.3;\">Is Your Mutual Fund Working Hard Enough?<\/h3>\n  <p style=\"margin:0 0 18px;color:#444;font-size:15px;line-height:1.65;\">Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you&#8217;re in the right scheme for your risk profile and investment horizon.<\/p>\n  <a href=\"https:\/\/maxiomwealth.com\/resources\/calculators\/better-funds-checker\" style=\"display:inline-block;background:#1C52A0;color:#fff!important;padding:11px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin:0 10px 8px 0;\">Compare Funds \u2192<\/a>\n  <a href=\"https:\/\/maxiomwealth.com\/meeting\" style=\"display:inline-block;border:2px solid #1C52A0;color:#1C52A0!important;padding:9px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin-bottom:8px;\">Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>It might be fashionable to say that something is overhyped. But if one takes a closer look the numbers, the truth will be apparent. Many Mutual Funds have given good returns compared to any other instrument, even the index. Here is a view of the rolling 5 year returns of Multicap funds vs the benchmark&hellip;&nbsp;<a href=\"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/18\/does-investing-in-mutual-funds-really-good-or-is-it-over-hyped\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Does investing in mutual funds really good, or is it over hyped?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-637","post","type-post","status-publish","format-standard","hentry","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=637"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/637\/revisions"}],"predecessor-version":[{"id":3895,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/637\/revisions\/3895"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}