Mutual funds are considered one of the most popular methods of investment in our country. People from all age groups are eligible to invest in mutual funds. To understand the importance of mutual funds, we should define them properly. According to research, a mutual fund is defined as a professionally managed investment option where several people pool their money from various investors to purchase securities.

We all make plans to live happily with our friends and family. Now the question is that many people like you and me are working daily for better financial returns and situations. Most people in their early twenties, thirties, forties, and many more are planning for their retirement. A perfect retirement plan should contain mutual funds investment. They are a safe way to generate and save money. Moderate risks are involved, but if you and the professionals involved in your plan have appropriate backup plans, then mutual funds can be your lifesaver.

If you are thinking of starting to save for your post-retirement phase, there are many trending plans in the country that specifically deal with this purpose. Professionals will work according to your plans and retirement planning calculators. They will then advise you to invest your money in the correct positions to get assured returns.

Many times some people think that why invest in mutual funds? The appropriate answer for this question is mentioned below:

• Inflation: It is one of the major reasons that people should think before they invest their money. Inflation can decrease the purchasing power of your money with time. So you should plan according to your financial needs and the inflation rates.

• Rise in medical cost: We live in a pandemic where people are losing their lives daily. So it is important to invest in funds according to your personal medical needs. Additionally, there are many funds in the market that can help you plan for your family's medical requirements.

• Decrease in interest rates: India is a developing country, so our economy will grow. With an increase in GDP, the supply of money will also increase, and interest rates will be reduced. So you should plan for your retirement expenses according to the recent developments in the economy of the country.

• No pension: In India, we do not have plans to support us financially after retirement, so people working in the fields have to start saving. Proper mutual funds or any other form of investment is required to meet the post-retirement needs.

If you are interested in investing in mutual funds for better retirement plans, then you can start it online also. There are many trusted apps that provide different plans for mutual funds. You can complete the KYC registration on their official website and start saving. They have different schemes to start a SIP online and earn money.