Mutual Fund Investment
Mutual funds give you the ability to easily invest in increasingly complicated financial markets. Mutual Funds could be Equity funds, Debt funds, floating rate debt or balanced funds. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity.
Why should you invest in Mutual Funds?
Investing in mutual funds is a simple process. It is a paperless process where you can monitor the market and make investments as per your requirement. Moreover, the facility of switching between funds and portfolio rebalancing helps in keeping your returns in line with expectations.
Low initial investment
You can have a diversified mutual fund portfolio in hand with investments as low as Rs. 500. You also have the option to invest either as a lump sum or a systematic investment plan (SIP). However, when compared to lump-sum investments, a SIP lowers the overall cost of investment while unleashing the power of compounding.
Section 80C provides tax deductions on specific financial instruments, and mutual fund is one of them. Equity Linked Savings Scheme (ELSS) has become a popular tax-saving option for Indians in the last few years, owing to its higher returns and the shortest lock-in period of 3 years.
Professional fund management
In mutual fund investing, your money is managed by a professional fund manager who is backed by a team of researchers. The fund manager formulates the investment strategy for your asset allocation. He/she will have real-time access to the financial environment and adjusts your mutual fund portfolio accordingly.