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Can You Become Rich By Investing In Mutual Funds?

Read this to know why a long term perspective and a goal-driven approach is necessary to create wealth with mutual funds. Find out how Cube simplifies wealth creation with handpicked funds and risk-based options.
December 13, 2020

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Investing in mutual funds is one of the most popular and effective ways to create wealth for the future. It is also a great way to generate passive income. 

This is due to the appealing long term returns and diverse investment options. Investors can also choose to invest in funds based on their financial goals and risk appetite.

However, you should remember that wealth creation is a long term journey with no such thing as a free lunch. Hence, it is important to keep a few pointers in mind before you begin your wealth creation journey using mutual funds.

The Power Of Compounding For Wealth Creation

Compounding is a process in which the total value of an investment increases as the interest on the principal and its investment earn interest. With the compound interest method, you can witness a mounting increase in the overall value in your investment.

The 15*15*15 rule can help an investor generate wealth using compounding. It suggests that if you invest a sum of ₹15,000 per month via SIP in a fund that gives 15% returns for 15 years, you can generate revenue up to ₹1 Cr. You can further read about the magic of compounding here.

5 Things To Remember Before Investing In Mutual Funds

1. Identify Your Risk Level 

It is important to consider the risks involved before making an investment. If you are just starting out and are tight on money, it is advisable to invest in a low risk investment such as mutual funds. 

As you continue to invest and learn more, you could start to broaden your horizons. Speak to a wealth coach to know your risk level. 

2. Set Goals

Goal based investing has its benefits. For starters, you would know exactly how much wealth you need to invest based on short, mid and long term priorities. 

The Cube Wealth app helps you do this easily with risk based investment options based on your goals. 

3. Get Quality Advice

A proven advisor like Cube’s mutual fund advisor, Wealth First can help you invest in a handful of the best options. Otherwise, you would be left with choosing from several thousand mutual fund options.

But this is where Cube is different. Our advisor doesn’t just tell you when to buy. But they also advise you on when to sell.   

4. Speak To A Wealth Coach

Speaking to a wealth coach could bring clarity to an investor’s decisions by working through apparent mistakes before inaccurate decisions cost them money. 

You can speak to an experienced Cube wealth coach today to invest in the most efficient way

5. Think Long Term

An outlook on the future with a focus on long-term investment can amplify profits for almost any investor. Mutual funds especially are long term instruments known to create wealth over 5+ years.

Patience and perspective can help you pay your future self instead of chasing short term trends.  

This video will explain the benefits of long term investing


Mutual fund investment plans help create an opportunity for investors to diversify their portfolio, provide liquidity and distribute the risk burden. 

There are ways to generate lucrative returns for the future with the right mutual fund investments. But it's important to have a proven advisor by your side and a wealth coach who understands your financial goals and needs. 

Download the Cube Wealth app to know how you can create long term wealth by investing in curated mutual fund options.

Think you know all about mutual funds? Take this 1-minute quiz and win a free consultation with a Cube Wealth Coach if you get 8 or more right!

Shriram Shekhar
Shriram is a Content Marketer at Cube Wealth, the Financial Freedom App with a smart Perfect Portfolio Planner. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. Shriram’s love for philosophy, product development, and empowering people through quality content is what got him to Cube Wealth.

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  • Low Minimum Investments
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