Top 5 Mutual Fund Myths You Should Stop Believing

Misconceptions keep many investors from reaping the benefits of mutual funds. Let’s clear the air and debunk the most common mutual fund myths in India.

• Sushil Bajaj |
• 13 June 2025 |

Introduction
Despite growing awareness, many investors in India still fall prey to myths around mutual funds. At Nivesh Sansar, we frequently come across doubts that need busting.

Myth 1: Mutual Funds are Only for Experts
Reality: Most mutual funds are designed for everyone, including beginners. You don’t need a finance degree to start.

Myth 2: You Need a Lot of Money to Start
Reality: Mutual fund SIPs start at just ₹500. Even college students or salaried individuals can invest.

Myth 3: Mutual Funds Guarantee Returns
Reality: No mutual fund can guarantee returns — they depend on market performance.

Myth 4: Past Performance Means Future Success
Reality: Always read the disclaimer — past returns don’t guarantee future profits.

Myth 5: Mutual Funds Are Risky
Reality: With the right fund selection (debt vs equity), risks can be aligned to your comfort level.

Conclusion
When you separate fact from fiction, mutual funds emerge as one of the smartest wealth-building tools. Nivesh Sansar helps you navigate the investment landscape confidently and responsibly.