Blog Details

Ground factors for mounting investments in Mutual fund

Image for mutual fund investment factors

We all while incurring expenditure on buying a property, automobile or even a small mixer grinder, evaluate and compare the proportion of benefit to investment as profitability is the prime aim of every investment. Along with looking at money-spinning aspect of the investment other factors such as safety, security and reliability too are investigated while buying any product.

Same is the case while choosing an investment vehicle as some of the tools involves high risk in which probability of loosing amount is high in those. We usually like to opt for safe investments like gold, fixed deposits; postal schemes etc though the return on them is quite nominal. In place of depositing your amount in various tools opt for contemporary investment platform giving unparalleled benefits like transparency, low cost, high returns, diversification, tax exemptions etc. Mutual fund investment is the contemporary and most popular mode of investment rendering numerous benefits at low risk.

Underneath are some significant reasons encouraging investment in mutual funds -

1. Professional management

While investing in mutual funds, investor hands over the decision of investment completely over professional money managers. Money managers do all the brain work in exchange of reasonable amount and investor enjoys and collects their returns without putting any effort other than investing their money.

2. Diversification

It is prime reason for amazing popularity of mutual fund as investing in mutual funds investor pool resources with other investors. The mutual fund management team uses these resources by investing into distinct securities. It aids in diversifying the portfolio. Otherwise an individual need large amount to diversify own portfolio.

3. Liquidity

Liquidity is big advantage of mutual fund investment. It is easy to sell or get involved in mutual funds and is totally as per the preference of investor.

4. High profitability or returns

Mutual fund assures high dividend in comparison to other investments.

5. Tax exemptions

It is a tax saving investment. Income received from mutual funds is exempted from tax and therefore is very accepted investment these days.

6. Affordability

Mutual fund is even affordable by those not having huge amount to invest. The investor with small money can purchase shares of fund thereby investor becomes a partial owner of securities possessed by fund.

7. Automatic reinvestment

An investor can sheer as per his choice, can automatically and easily have capital gains and dividend reinvested into their mutual funds without any extra fees.

8. Systematic investment and withdrawal

It is easy and convenient to invest regularly in a mutual fund. Investors are even allowed to invest by numerous mutual fund companies a small amount like Rs 500 on monthly basis into a mutual fund. Amount can be withdrawn directly from bank account and invested directly in mutual funds. Also regular withdrawal can be done from mutual fund and deposited into bank.

9. Mutual funds comes in wide variety

Mutual funds are available in many sorts like sector funds, stock funds, stock funds, balanced funds, money market funds and target date mutual funds. It facilitates investors to make a diversified portfolio at minimal cost with ease.

For availing great benefits, start your investment today!

Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.

Do you have an Investment or Mutual Fund Query Post Your Query