One should never invest in Mutual Funds, but should invest through them
Absolutely right—and very well said!
“One should never invest in mutual funds, but invest through them.”
What Does It Mean?
This statement emphasizes that mutual funds are a medium, not the final investment destination.
You don’t invest in mutual funds like a product—you invest through mutual funds into underlying assets like:
| Mutual Fund Type | Invests In |
| Equity Funds | Shares/Stocks of companies |
| Debt Funds | Government securities, bonds, money market |
| Hybrid Funds | A mix of equity and debt |
| Index Funds | Stocks that make up an index like Nifty 50 |
| Gold Funds | Gold ETFs or gold-related instruments |
Why This Mindset Matters:
- You focus on what you’re actually buying into—equity, debt, gold, etc.
- You evaluate mutual funds as a vehicle to access professionally managed portfolios.
- You become more strategic and goal-oriented in your investments.
Example:
Instead of saying:
“I invested in an Axis Mutual Fund.”
You should think:
“I invested through Axis Mutual Fund into large-cap Indian stocks.”
