Mutual funds are the best option for people who want to invest in the market but lack the time or knowledge. Let’s now see the benefits of investing in mutual funds.
Managed by professionals: Well qualified professionals along with a research team continuously analyses the performance and prospects of different companies and manage your money.
Diversification: Diversification lowers the risk of loss by spreading the investment across various industries.
Beat Inflation: Mutual Funds provides better inflation-adjusted returns. When you simply save your money in the bank, inflation may be nibbling away its value.
Convenience: Mutual fund is an ideal investment option that is both convenience and time-saving.
Low Cost: The biggest advantage is the low cost of investment in mutual funds, as compared to investing directly in capital markets. One can start with as low as Rs. 500.
More choice: Mutual funds offer a variety of schemes to suit everyone’s need.
Tax benefits: Investments made for a period of 12 months or more are eligible for tax benefits.
Liquidity: You can redeem all or part of your investment any time you wish and receive the current value of the shares in open-end funds. The process is also quick and efficient.
Transparency: The performance of every mutual fund is reviewed by various rating agencies, making it easy to compare one fund to another.
Regulations: All mutual funds are obliged to follow strict regulations designed by SEBI (Securities Exchange Board of India) to protect investors.