A mutual fund is the smartest way to build your wealth without timing the market. They are a proven vehicle for regular investors who want to earn a sizeable amount of return based on their financial goals. However, since mutual funds are market-linked, there is a risk element attached to it. Having said that, a mutual fund is still your best bet for long-term wealth creation.
The Indian mutual fund market crossed a record Rs. 20 lakh crore on September 7, 2017, with investors moving slowly from real estate and gold to mutual fund investments. In effect, the MF industry’s assets have growing twice the size in the past 3 years. Having said that, the mutual fund industry in India is still at a nascent phase, attracting only 4.5 percent of the population’s savings.
Though the industry’s untapped potential is huge, there are still challenges in the form of misinformation, exaggerated figures, investing in the wrong products etc.; that can result in shaky investor confidence. Clearly, knowledge is power. It is important to arm the investor with the right guidance and enough awareness so that she or makes informed decisions, irrespective of any bias.
Here are the 5 best books on mutual funds which contain a wealth of information on smart investing tips –
- Common Sense on Mutual Funds (1999)– Written by John Bogle, the founder of The Vanguard Group (the largest provider of mutual funds in the world), the book is considered a classic. Highly rated by the investment community, the book focusses on long-term strategy for creating wealth.
- Bogle on Mutual Funds (2015) – Another must-read by John Bogle, this comprehensive book gives investors the wisdom of choosing the right mutual funds to build their portfolio. It cuts through every form of bias and asks investors in considering the risks and rewards while making their investment choices.
- Beating the Street (1994) – Written by the legendary money manager and wealth-creation expert Peter Lynch, the book gives sound advice on picking the right mutual funds. He maps out successful strategies for stocking picking and shows how individuals can make the right decisions based on sound research.
- Indian Mutual Funds Handbook (2016) – Written by Sundar Sankaran, this book is tailored to Indian investors, giving information right from the best of investing in a mutual fund to handy tips on investor protection. This is one of the earliest books on mutual funds targeted for the Indian market.
- Dream Big (2017) – Written by Dr. Mukesh Jindal and Arunraj VS, this is a ‘Bible’ on financial planning for India, covering a lot of ground in an easy-to-read, simplistic style exclusively for Indian investors. The book discusses key investment strategies for wealth creation, covering not only mutual funds in great depth but also other investments, insurance and everything else related to making money. It also shows how you can identify and steer clear of financial products with exaggerated claims. With focus on investment awareness, this book is the right tool for anyone who wants to experience financial freedom