Why should you invest in mutual funds?

Hello All,

Hope you guys have read my first blog on mutual fund??and now have a basic idea on mutual funds. If not, please contact with me, I will try to clear the ideas what ever I know. I will be very happy to resolve your queries. And if I am not able to answer your query, it will help me to research more and then get back to you with proper answer. Now the burning question is why should I invest in mutual funds ???

Investors always look for good investment opportunity, which gives good returns, but on the other hand ??people also want their investment to be safe and secure. Looking at present financial distribution system and quality of advice available in the market, we strongly believes that Mutual Fund Investment can help a lot to investors.

As per my opinion first you have to choose how much you want to invest yearly , second option you have to select whether you are going to invest to save ??tax or not ? If you want to save tax you can go with ELSS scheme and if not you can go with non-ELSS scheme.

1.Higher/Moderate returns:
MF provide the right avenue for investing in a variety of market-linked instruments, which have time and again delivered superior returns compared to other traditional investment options. Debt funds have consistently beaten Fixed Deposit (FD) returns, and with bank interest rates going south, they present a good investment choice for investors with lower risk appetites. For the more adventurous investors, equities (shares) present a great investment avenue, for higher, inflation-beating returns. And investing in equities through mutual funds is an excellent way to enjoy the higher returns, but with much lesser risk, thanks to rupee-cost averaging, portfolio diversification and many other factors. Data reveals that equity funds have delivered around 11-15% returns over the last 10 years. With inflation averaging at 4-6%, you could get a head start on your savings, by identifying and investing in the right mutual funds today.

2. Managed by??professionals
Mutual funds are professionally managed by fund managers, whose every day job is to track the markets and manage investments. Fund managers identify the winning stocks to buy, when to buy them, and more importantly, when to sell them. They spend hours analysing the performance of companies, and if they fit the fund they manage. What???s more, all mutual funds are governed by SEBI, the industry body, and are highly secure and transparent.
3. Disciplined way of investing
Habits are hard to break. Which is why we are advised to inculcate good habits. And what better habit could there be, than investing for your secure future? When you start a Systematic investment Plan (SIP) in a mutual fund, you are committing to invest a certain amount on the same day of the month, consistently for a certain number of months/ years. Such a commitment instills in you the discipline to take a productive action towards your future. It becomes a fixed component of your monthly spend, around which all other expenses have to be factored.

4.Less/ No lock-in
Almost all your traditional investing instruments come with long lock-in periods, which make it hard for you to get your money out, in times of emergencies. Mutual funds, on the other hand, broadly come with less, if not no, lock-in periods. Most funds do not have a lock-in period and give you the flexibility to redeem your money when you need it. Even tax-saving Equity Linked Savings Schemes (ELSS) come with a short lock-in of only 3 years. So you are saved the hassle of fixed, long lock-in periods, as seen in other investment options. Having said that, experts recommend that a fund should not be redeemed until the goal for which it was started is fulfilled, as the longer you stay invested, better are your chances for higher returns.

5. The fund with your name on it
Within the world of mutual funds there is a wide variety of investment choices to pick from – equity funds, debt funds, liquid funds, tax-saving funds etc. So, depending upon your profile, goal and preference, there are various funds that are ideal for you. Unlike a PPF or an NSC, where the rules are already laid down for you, here you can choose what type of fund you want, how long you want to stay invested, how much you want to invest, and much more

6.Diversification
We???ve all heard the adage ???Don???t put all your eggs in one basket???. This is the premise of diversification. It means spreading your investments across asset classes and stocks, to reduce your risk. With mutual funds, you get the advantage of default diversification, as your fund manager invests across a variety of stocks. Sudden changes in one stock, are likely to be balanced out by the performance of other stocks in the fund. It is an ideal way to get a taste of the equity markets, but with lesser risk. Of course, it is important to not invest all your money in one mutual fund, and further lessen your risk by diversifying across different types of mutual funds.

To invest in Mutual fund please dial in below number or drop me a mail :
Jayati Datta Gupta

Cell number: (+91)-9051732839, (+91)-8013774767(Whatsapp)

Mailto: pritamcoolit@gmail.com

 

 

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