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Benefits of Mutual Funds

  • Nirav Karkera
  • May 20 2019
  • 3 minutes
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“It’s not your salary that makes you rich, it’s your spending habits.”

-Charles A. Jaffe

Mutual Funds

Spending money is not an easy task as you grow. It requires caution and most people tend to create a list of pros and cons before spending money on anything. So it’s only right for you to know how to invest your money and where it is best to do so.

A mutual fund is like taking a train. It gives you all the great benefits of traveling around with the least amount of risk. That’s one of the biggest concerns. The risk involved is a nagging feature of every investment we make. But apart from risk, there are other features that will help you make a well-informed decision. So here are a few highlights of investing in Mutual Funds:

  • The Conductor:

In a mutual fund, your investments are taken care of by Professional Fund Managers. They collect funds from several different investors and trade in securities to earn a substantial return. They are always backed by expert research teams with real-time access to crucial market information.

  • The Tracks:

The money you invest in Mutual Fund schemes is distributed over a range of instruments having a distinctive nature of risk and returns. Your portfolio will include equities, debt, and commodities like gold. The diversification of your funds will decrease your overall exposure to risk.

  • The Breaks:

You can easily invest in Mutual Fund with your bank or even through an app like Finity. But the more important thing to remember is that an investor can withdraw any time he wants. You can even choose to invest affordably through Systematic Investment Plans (SIP) or through on shot payments in Lump Sum, depending on your convenience.

  • The Ministry:

The Mutual Funds are a well-regulated market. Industry rules and regulations are continuously reviewed and refined by SEBI to protect the investors. Many people fear the scams that hit the markets in the past, but it only resulted in a more strictly managed structure.

  • The Tickets:

The Mutual Funds gives access to large ticket options. Specific schemes allow you to invest in Governments Bonds and International stocks.

  • The Destination:

The outcome of every investment is the returns. The high returns an investor gets in Mutual Funds is almost equivalent to that of equity (extremely high) without the disadvantage of actually entering the market.

So there you have it, a few great benefits of investing in Mutual Funds. There are some more advantages like tax benefits, cover against inflation, low exit fee, etc. So instead of taking a car on your own to the stock market, take a train to a Mutual Fund company for a wonderful investing journey!

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