Why should you invest in mutual funds ?
Diversification: Diversification may be the greatest benefit of mutual funds. The beauty of investing in mutual funds is that you can buy one fund and obtain instant access to hundreds of individual stocks or bonds. Otherwise, in order to diversify your portfolio, you might have to buy individual securities, which exposes you to more potential volatility.
Online Transaction: Manage any kind of mutual fund account through by online portal or smart phone app and no paperwork required.
Safe & Convenient: Investor can alternate their structure in investments according to the liquidity and taxation requirements. additionally, an investor can withdraw their investment fully or partially, from mutual fund account, all transactions are safe and secure through by bank authority only.
Tax Savings: One of the benefits of mutual funds is you can save income tax. If you invest in an ELSS fund, you can reduce your taxable income by as much as Rs 1.5 lakh under Section 80C of the Income Tax Act - 1961.
Well Regulated: Mutual Funds are regulated by AMC, SEBI or RBI (the AMC is promoted by a bank), and each mutual fund has a board of directors who represents the unit holders interests in the mutual funds
Wide Choice: Variety of mutual fund schemes are offered by Asset Management Company (AMC) institutions, many scheme are available with risk and return (market proportion) in various schemes.
Mutual Fund Objectives: Most common objective of investment is growth, the primary objective of any growth fund is capital monetary over the medium to long term, mutual funds are generally invested primarily in small to large cap stocks.
Benefit of Mutual Fund
- Tax Efficiency
- Liquidity & Safety
- Expert Management
- Automated Payments
- Quick & Painless Process
- Regular or Onetime Investment
- Less Cost for Bulk Transactions
- Invest in Smaller Denominations
