Folk Tales: Jackal and the Drum


Once upon a time, in the jungle, there lived a jackal. The jungle was vast, and there was once a battlefield nearby. The jackal became hungry one day. He was wandering around looking for food. He came across the old battlefield while doing so. A sudden drum fall alerted him. He felt fearful, thinking – have the army not left; are the humans still around? He mistook it for a human and hid behind a tree, observing silently from a safe distance.


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Behind the tree, the jackal noticed a drum hanging from a tree branch. The drum swayed in the breeze, bumping against a branch and making startling noises. He noticed a half-eaten lunch packet at the base of the tree. He was so excited that he pounced on it and ate it.


What is the moral of the story?


The moral of the story is to look before you leap. Don’t allow panic to keep you from making rash decisions.


Do you have similar experiences with mutual funds?


You may have to deal with such situations occasionally with mutual fund. But this is certainly not a big deal!


Why should one not fear investing in Mutual Fund?


New investors experiencing the bear market for the first time typically feel more pain than investors who have seen one market cycle. Are you among one those who have reservations about investing in mutual fund? Do you still wonder if mutual funds are safe? 


We usually prioritise recent events over earlier ones. In a panic, you may either stop investing or withdraw funds from the schemes. Other reasons for being afraid of not investing might be risk factors, records, high expense ratios, lack of knowledge or tax inefficiency. 


Be assured that mutual funds are completely safe. The low-risk mutual fund can provide inflation-beating returns if you understand the investment and invest based on your financial goals and risk tolerance. You will not wake up one day to discover that the mutual fund you invested in has vanished along with your money.


There are two ways to determine the safety of a mutual investment: –


  • Security in terms of the company where you have invested stealing your money.
  • Safety in terms of capital preservation and fixed returns.


Continue to invest in mutual fund schemes: –


– More of a test of endurance than of reactive responsiveness 

– Consistently growing wealth while ignoring market noise


Mutual funds created to provide higher, tax-efficient returns


The goal of investing in mutual fund is to generate higher returns than traditional investment options. The best-performing mutual funds in India are also less expensive to tax than conventional investments. Mutual fund gains, both short and long-term, are taxed in a way that does not reduce returns. These funds make perfect sense as long-term investments because the longer you invest, the higher your returns will be.


It is due to the power of compounding, where your returns generate more returns. Over longer periods, mutual fund have provided superior returns that have outperformed traditional investments while also outperforming inflation.


The risk associated with mutual fund investments can be mitigated by diversifying your investments and investing following your financial objectives, time horizon, and risk tolerance.


Investing in Mutual Funds has always been easy


Mutual funds are a safe investment if you understand them better. Investors should not be concerned about short-term return fluctuations when investing in equity funds. You should select the best mutual fund for your investment objectives and invest for the long term. The high-return mutual funds are productive to select for the long run.


You should conduct research and learn more about mutual funds before investing. Several mutual funds suit different investors, including aggressive, moderate, and conservative investors. To make things easier, you can invest through Tata Mutual Fund, one of the best mutual fund to invest in, and it offers excellent mutual fund schemes based on your financial objectives.


Interested in how we think about the markets?

Read more: Zen And The Art Of Investing



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