Now Invest any time, anywhere online with one click
Invest as low as Rs.500 per month.
Earn Above Average returns*
Tax Benefit u/s 80C.
If you understand bonds, stock, gold, real estate and other investment, then mutual fund is combination of these investments. When you invest in mutual fund you are diversifying your investments — that is, invest in different industries and companies instead of in just one or two. By diversifying the risk over a number of different securities in different industries and companies, avoid portfolio instability and suffering large loss.
Investment needs research, time to track the market, identify right investment, analyse risk and proper diversified portfolio. What’s best than invest in mutual fund?. Mutual Funds are managed by professionals, so you won’t need to hire an adviser. These fund managers manage your funds at no extra cost. There are more reasons why you should invest in the mutual fund.
Tax Benefit – Investment in MF (only ELSS – Equity Linked) which covers the major part of equity investment is exempted from tax up to Rs. 150000. This exemption is under 80C of Income-tax act 1960.
Annualized Return – When mf companies earn profit through investment, the unit price (Net Asset Value) of the fund also increases. For example. if you invest in x company mutual fund having Rs 10 as NAV and suppose that the company earns a profit then NAV rate in increases. You can compare it just like a normal stock.
Diversification – MF company do not invest in one stock or in only one type of Investment. They diversify the investment in many securities.
Affordable Investment – MF give you an opportunity to invest with as low as Rs.500 and no maximum limit.
No Promises – MF are subjected to market risk, if someone is promising you fixed rate of return then it’s bluff.
Past Data – MF are analysed with the past performance. But past may not repeated.
No Investment Details – Fund manager/MF companies do not disclose the details of Investment to their unit holder. So it not possible to analyse investment of MF.
Not Always with Market Trend – MF manager may use derivatives or other type of investing strategy for investingg which may not follow the market trend
Invest in Mutual Fund when market is oversold. In left graph, Mutual Fund is winner if 1 year analysis is considered, but in long run Nifty Index is winner. One can choose Index fund as another diversification option.
Mutual Funds are subjected to market risk. Please read all related documents before investing.