Points you should know about Mutual Funds Returns
Before we start talking about Mutual fund returns we should know what is mutual fund? And why should we invest in Mutual fund? What is Mutual Fund?
Before we start talking about Mutual fund returns we should know what is mutual fund? And why should we invest in Mutual fund? What is Mutual Fund?
SIP- Systematic Investment Plan helps investors to invest in mutual fund scheme. In SIP, investments are made by debiting money directly from the bank account of the investors.
Before knowing that why SIP is important you should know what is SIP. It is a smart financial planning tool that helps you to create wealth. SIP is systematic investment plan, that means a fixed amount of money is debited by the investor’s bank account periodically and invested in a specific mutual fund. The investor is allocated a number of units according to the current NAV. Every time a sum is invested, more units are added to the investor’s account.
There are so Mutual fund are available in the market. As we know, they are subject to market risk so while we are investing in the Mutual Fund we have to choose wisely. It is one of the best decision to earn high returns while avoiding tax payments at the same time.
Mutual Fund is an investment scheme where, it collects money from a large number of investors having a common investment goal and invests in securities like- bonds, stocks or short-term money market instruments. This funds are professionally managed and are well diversified to offset any potential loses. Systematic Investments through mutual funds instill a habit of investing on a regular basis leading to long-term wealth creation. Mutual Fund also has the benefit of the choice of risk for the investors. High, medium, low risk funds are the investment options depending on the risk taking ability of the investors. Investment in this fund can redeem at any given time. Diversification in asset allocation without investing a lump-sum amount in individual portfolio is possible only in Mutual Fund.
Equity Linked Savings Scheme popularly known as ELSS is the best tax saving Mutual Fund. Under Section 80C, ELSS provides tax-deduction of up to Rs.1.5 lakh. These scheme has a lock-in period of 3 years from the date of units allotment. The units are free to redeemed or switched after the lock-in period. Under this scheme, more than 65% of the portfolio is invested in equity which leads to capital gains and tax saving. ELSS is suitable for all categories of investors.
Mutual Fund is a trust managed by Sponsor, Trustees, Asset Management Company (AMC). The trust is established by a sponsor(s) who is like a promoter of a company and the said Trust is registered with Securities and Exchange Board of India (SEBI) as a Mutual Fund.
Before we start talking about Mutual fund returns we should know what is mutual fund? And why should we invest in Mutual fund?
Online Mutual Fund SIP Investment create long-term financial goals, SIP is a great guide.SIP Investment is an unique proposition to create long term wealth
Liquid Funds and Ultra-Short Term Funds. Liquid Funds and Ultra-Short Term Funds maturity period of 91 days and 7 days -540 months respectively.