7 Major Benefits Of Investing In Mutual Funds In India

Benefits Of Investing In Mutual Funds

There are many ways to earn a return on your investment it may be through your saving bank account,
Fixed deposit or even by investing in the Stock Market by why you should you go for Mutual Fund
you may ask, Well there is much reason we have simplified you the
7 Major Benefits of Investing In Mutual Funds:

1. Expert advisor

2. Diversified portfolio

3. Choice of investment method

4. Higher liquidity

5. Cost-efficient

6. Transparency

7. Funds for everybody.

 

1. Expert Advisor:

Why people believe mutual funds are the best platform to invest your money,
it’s simple when you invest in mutual funds all your money is collected and assigned to an expert advisor
who has higher experience in the sense of investment and handles your funds to the fullest potential
and he will analyze the market conditions and then invests in the funds that provide you
the better-expected returns.

2. Diversified portfolio:

There is saying  “Don’t put all your eggs in a single basket” it means don’t invest all your money in one particular company because if there is a loss in that company there will be a huge impact on your investment,
so always diversify your investment in the various company.
well, you may don’t know where to invest or not have the resource to make the best investment decision.
This is when a Mutual fund advisor comes into the picture when you invest your hard-earned
money into mutual funds all your amount is re-invested in various bonds,
share which will fetch you a higher return compared to other investment options.

3. Choice of investment method:

There are two methods of investing in mutual funds they are:

  • Systematic Investment Plan:
    Well in a systematic investment plan you can choose to invest on a monthly or weekly
    basis it completely depends on your convenience.
  • Lumpsum:
    Well in the case of Lumpsum it’s a one-time investment just like in the Fixed Deposit
    where you invest for a specific period of time at a specific rate of interest
    but in the case of mutual funds, you can close your funds at any given period of time.

4. Higher liquidity:

one of the best benefits of investing in mutual funds is Liquidity,
in most mutual funds there is a lock-in period which means there is a restriction on
the time span for withdrawing your amount from the mutual funds,
it is as simple as drawing an amount from your savings bank and it provides you higher interest
compared to a man of the banks.

5. Cost Efficient:

Most of the funds are open-ended funds when means you are obligated to pay any additions charges
other than a very reasonable commission from 0.5-2 % on then services like an expert advisor,
liquidity benefits, and compared to the return it makes us the commission is worth to be paid,
although that being said there are many firms that specify their commission based on their service,
so you need to very careful while selecting your mutual fund agents.

6. Transparency:

Well, all the funds are monitored and governed by SEBI(security exchange board of India)
which is a regulatory body of government assigned to look after all the activity done by the company
and provide a detailed report about the company so that the company cannot keep the people in the blind spots.

7. Funds for everybody:

Funds for everyone means funds are starting with a budget of 500rs and are very flexible which means he/she can invest whenever they have money.
ex: you may invest 500 today and come back tomorrow to invest again or invest 500
today and invest another 500 after 3months, just like adding your amount to the saving bank account.
In most cases, it’s an open/closed-ended policy so it will allow the customer to close the account whenever he deems it necessary of closing it.

conclusion:
while investing your money it is always better it makes of habit to do some research,
because either it will bring you the return and the experience as well for future.

 

[ Read More: The BEST INVESTMENT PLANS For 2021 In India ] [ Read More: Banking Ombudsman and How To Apply Online ]

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