They ultimately know that becoming rich is not an overnight phenomena its takes years and years to get there.
A typical person (Calling him spender) who will spend first and save later is one who will, immediately put some money on the side for his EMIs (Every monthly installment), then keep money aside for his daily needs and regularly monthly expenses, then plans to invest.
Whereas the other person who saves first and then spends will invest a large chunk of his money in some good compounding stocks or investments which yield good returns.
Then he would look at whatever is left and see if he can take a loan, spend on his family and to what extent.
The reason, I call this a secret is because its deeply rooted in the behavior and DNA of only some people.
Which is equivalent to getting lucky in business or finally striking gold.
When a bunch of investors with a common financial goal invest in a mutual fund, a pool of money is created.
In order to yield returns to our investors’ portfolio, the money is later managed by professional fund managers, who invest in bonds, stocks & various other money market instruments.The First Concept- Mutual funds are believed to be first traced back in the year 1774 by a dutch merchant Adriaan van Ketwich.
In the year 1772-73, his clients suffered a major loss, as an investment in the British East India Company didn’t turn out ideal.Bearing the heavy loss in mind, Ketwich came up with the concept of diversification of investments.
This eventually reduced the risk of loss to budding and existing investors.
In 1987 UTI saw the birth of public sector mutual funds.
Sectors like Life Insurance Corporation of India (LIC), SBI Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of Baroda Mutual Fund & many more surfaced.
