According to the data from the Association of Mutual Funds in India (AMFI), the total assets under management (AUM) of the mutual fund industry has surpassed Rs.14.90 trillion in 2016 which represents an 18% growth in assets over the previous year. Initially viewed as an investment opportunity exclusive to the financially savvy, around 4.89 crore investor accounts exist as of this year. The increase can be attributed to a growing financially secure middle class and investor education.
The increasing interest in mutual funds have raised many pertinent questions namely what fund to invest in and for how long?
Even after deciding on the investment duration and identifying the right mutual fund, the main dilemma for investors is the strategy itself. Should they try to time the market or maintain a buy and hold strategy?
