Isn’t this what all of us seek from our investments? Mutual funds 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
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
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.
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.
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.
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.
And finally, investing in mutual funds is now a piece of cake. The whole process is
offered online by many players in the industry. Starting a SIP or making an
investment can be done in a matter of few clicks. Even tracking the performance of
your investments can be done easily online