9 reasons why you should opt for Mutual Fund Investments

Mutual Funds are considered as one of the easiest, safest, and cheapest ways of long-term investment. Here are nine reasons why you should look to invest your money in Mutual Funds for better returns

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In today's world, savings are an important factor in an individual's life. In fact, savings play a crucial role in assisting the common man deal with the ever-growing inflation. Since it can be said that good things come to those who wait, people must look to make an investment that would reap them huge benefits through in a longer period. 

Therefore, if you are willing to show patience and want better returns, Mutual Fund Investments are the perfect option for you. Here are nine reasons why must look to invest in Mutual Funds:

Numerous Schemes Flexible As Per Your Needs

The Mutual Fund Investments have been designed to meet the needs of every person and accordingly, there are numerous schemes designed as per your budget and needs. Currently, there are 44 companies in India that offer thousands of mutual fund schemes.

Investors can decide to opt for a short term, medium term, or a long term scheme as per their requirements and find a viable plan. The plans are designed with a options of Equity Fund, Debt Fund, Hybrid Funds, Gold Fund, Sector Fund, ELSS Fund where the investors can make a necessary choice. For example, The ELSS Fund, i.e. Equity Linked Savings Scheme, is designed to reduce the tax burden off an individual. So, if an investor was to invest ₹50,000 in an ELSS, then this amount would be deducted from the total taxable income, thus reducing their tax burden.

These schemes have a lock-in period of three years from date of units allotment. 

Expert Guidance

In order ensure that an investor completely understands the scheme and is able to invest in the best possible scheme, every mutual fund house appoints a Fund Manager.

The manager looks to offer guidance and counsel to every investor and is assisted by a research team along with a business expert. The research team looks at the market closely, examining the trends and noting possible outcomes. Accordingly, they present a report to the Fund Manager who then forms a plan as per the trends presented in the reports.

In the meantime, these schemes are redeveloped every now and then with changing trends to provide the best possible scheme to an investor.

Minimal Risk

Mutual Funds are a mix of various schemes and therefore, they allow the investors to enjoy the benefit of having minimal risk. Therefore, even if one scheme faces bearishness in the market, the other schemes allow him to recover the money in the longer run.

The Mutual Fund houses assist the investors in dividing their investment in different companies to avoid any major financial losses. Therefore, a person can invest with ease without the risk of facing severe losses.

Cost-Effective

Thousands of other investors invest their money in the schemes along with you. Therefore, the mutual fund schemes become comparitively cheaper and are hailed as cost-effective. If you tried investing independently in a company, the cost may be higher than that offered by the Mutual Fund house.

Schemes Begin At ₹100 Per Month

Mutual Funds offer Systematic Investment Plans (SIPs) which allow the investors to invest money in smaller installments rather than making lump sum investments. These investments are subjected to weekly or monthly basis and the most basic scheme begins at ₹100 per month.

These schemes are very beneficial while you are aiming to save money for a long time and have the patience to wait till the maturity period.

Transparency

The information about your investments is available for you at all times which means an investor can check the Net Value of their scheme at any time. The Mutual Fund Houses send a monthly report to their clients regularly and keep them updated about the scheme's status. 

Monitored by SEBI and AMFI

The Security & Exchange Board of India (SEBI) and Association of Mutual Funds of India (AMFI) are the supreme bodies of financial investments in India and accordingly, they have all the information about every investment made. Therefore, in order to protect the investors' rights, the two government bodies keep a close eye on the Mutual Fund Houses.

In case of any complaints, SEBI and AMFI thoroughly investigate the companies and check all its financial records. Alongside, it is mandatory for the company to provide regular reports to SEBI and AMFI.

Easy Procedure To Open An Account

It is very easy to invest in Mutual Funds as an investor can approach a distributor, a broker or can directly approach a Mutual Fund House. One can apply for the scheme online as well offline and the scheme can be opened any time through ease.

Easy Withdrawing

As simple as it is to invest in a Mutual Fund scheme, it is even easier to withdraw money when needed from an open-ended scheme.

Therefore, if one intends to withdraw money from the scheme, the investor must place an order and within two days, the money will be transferred to their bank account.

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