Mutual Funds
What Are Mutual Funds
It is an investment vehicle where multiple investors come together and pool their funds. This pooled money is then invested by the fund manager across various asset classes including equity, debt, gold, and other securities to generate returns. The gains and losses incurred from such investments are divided among investors in the proportion of the share of investment.
Invest in Mutual Funds
Mutual Funds are a smart way to grow your money. They can help you achieve your financial goals as they have the potential to generate higher-than-inflation returns.
Professionally Managed
One of the key benefits of investing in these funds is that your money is managed by professional money managers who have years of investing experience.
Liquidity
It is the ease of buying and selling an investment. Mutual Funds offer superior liquidity compared to some of the other instruments as you can buy and sell them anytime you want.
Returns
Like any investment product, the performance of these funds are measured in terms of the kind of returns they deliver. Historically, mutual fund returns have been higher than the returns delivered by other traditional investment options like Bank FDs, RDs PPF, etc.
Affordability
You can start your investments in these funds with as low as Rs 500. Therefore, you don't need large sums to start investing.
Diversification
As mutual funds invest in a basket of stocks, bonds, etc., you can own a diversified portfolio even with a small investment amount, this helps reduce risk as wel I.
Well Regulated
Mutual fund schemes are regulated by the SEBI. The tight regulations ensure transparent processes and protect the investors' interests.