From “Mutual Fund Hai” to “Mutual Fund Sahi hai” it has been through a lot. Mutual Funds gain the popularity day by day. A huge number of an investor in India has invested in Mutual Fund. With the high return, it has attracts so many investors. You can invest in a mutual fund as per your convenient; you also can save tax of Rs.1.5lakh in ELSS.
Advantages of Mutual Funds
- Managed by Professionals
Mutual Funds are managed by professionals. You can invest in mutual at any time and it is very easy. You don’t need so much knowledge about the market if you want to invest in Mutual Funds. Mutual Funds mostly invests in shares, real estates, gold, bonds, and the list go on. A fund manager invests in these sectors to give you the possible high return.
Diversification reduces the risk of the Mutual Fund. Fund manager always invests in more than one asset class to a minimum the risk. This is called diversification. So in this way, if one asset class does not perform well another will.
If you haven’t invested in an open-ended mutual fund you can easily exit a scheme or buy new scheme. You can sell your units when the market is high and you have to stay invested when the market is low.
While you are investing in mutual funds you can check the fund performance and for that, you don’t have to have to dig so much. You just can open the internet and can check fund performance online. You can check the fund manager’s name to what is the present NAV of that fund.
- Save your Tax
With the help of ELSS Mutual Fund, you can save your tax up to rs.1.5lakh. The lock-in period is three years for ELSS fund. ELSS funds also give high returns as it is connected with Equity.
Mutual Funds are regulated by SEBI (Security and Exchange Board of India) so no one can fly away with your money.
- Financial Goals
There are so many types of mutual funds are available in India. You can choose a mutual fund as per your need. You can choose a mutual fund scheme which will help you.
- Risk Factor
Not everyone is familiar with the risk factor of mutual funds. The mutual funds have some risk factors as it is connected with the market and no one knows what will happen next on market it can’t be controlled so if you are investing in equity you will face some risk factors. But the return is also high.
- Apply Online
You can apply online direct or regular in a mutual fund. If you have enough knowledge you can invest directly but if you are investing first time in a mutual fund or you don’t have so much clear idea about mutual fund you should go with regular who means you should take advisers help.
- Lump-sum or SIP
You can invest in mutual fund through lump-sum or SIP as per your need. SIP (systematic investment plan) helps you to make a good investment habit as well as it will help you to build your wealth in lump-sum you can invest a huge amount once and can gain good returns.