A mutual fund is like an investment basket that allows a group of people to pool their money and build a collective corpus. Fund managers, who are well equipped with the knowledge as well as expertise to handle investors' money are appointed to watchdog performances. The job of fund managers is to build wealth over the long term, identify the right mutual fund scheme and build a solid portfolio that brings good returns.
Wondering why mutual funds?
Investors, today may not have time and expertise to invest in stocks, equities. Where mutual funds seek a validated way by help you take an exposure to the equity market, which is easy, convenient and match appropriately with individual needs, requirements.
Mutual funds help you get access to a diversified portfolio of all debt instruments, which you may not be able to do as an individual, unless you invest a few crore of rupees. The simplest and least expensive way to get wide access to investments, fruitful returns, minimal risks and professional management unarguably makes mutual funds a must have investment.
What makes mutual fund an attractive investing option?
The fund managers have real time access to crucial market information to manage large pools of money. Let professionals handle all the securities, analysis and questions of when to buy and when to sell.
Mutual funds invest in a broad range of securities and this limits investment risks. Mutual funds diversify portfolio by investing in a number of securities so this spread the risk out into more baskets. Achieve diversification with far less money.
Professional/Convenient Administration :
Mutual fund investing reduces paperwork and at the same time help you avoid problems such as inadequate deliveries, delayed payments and unnecessary follow ups with brokers and companies. Save time and make investments easy and convenient.
Increase the revenue opportunities:
Investment in a mutual fund means you are a part owner in a pooled diversification. No single investor could cover this much diversification.
Low Costs: Mutual Funds are relatively less expensive way to invest and let you participate in a diversified portfolio for as little as Rs. 5,000/- . Start with very nominal amount and get the advantage of long-term equity investment.
Liquidity: In open-ended schemes, you can get your money promptly at net asset value related prices from mutual fund itself.
Transparency: It's not sticking money in a portfolio not really knowing what is happening. Get regular updates on the value of investments in addition to disclosure on the specific investments made by your scheme, proportion invested in each class of assets and the fund manager's investment strategy and outlook.
Flexibility: Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.
Choice of Schemes: Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well Regulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.
Bear in mind, your success as a mutual fund investor is not limited to how stock markets are doing. Instead, success of an investor depends entirely upon what type of funds you hold in portfolio irrespective of market swings and swaps.