Mutual funds have now become the go-to option for people who want to dabble in investment and wealth creation. But what sets it apart from a regular stock market investment is that all the investments are carried out by professional managers. These experts live and breathe with the stock market, and have a good idea about where to invest your money. With the advent of technology, it is now even possible to buy mutual funds online. Still doubtful about mutual funds? Then read on to find out 5 reasons why you should invest in mutual funds.
1). Professional managers take the majority of the burden
When you buy mutual funds, you can rest assured that your funds will be managed by qualified and professional fund managers whose goals are to achieve maximum returns for the investors’ money. They manage their portfolios via tremendous research and keep an eye on changing trends. Their decisions are based on the ups and downs of the stock market, and they are in a better position to make decisions that may appear intimidating to a layman.
2). Mutual funds help you achieve your financial goals
One of the first steps towards a mutual fund investment is to define a goal. Whether it is buying a house, a retirement plan, your child’s education, or creating a contingency plan, mutual funds can help you achieve these goals. Unlike other investment options, mutual funds offer a diverse range of products that can help you achieve both short-term as well as long-term goals.
3). Mutual funds are easy to buy, sell and monitor
Investing in mutual funds is so easy and convenient that you can start doing it right from your desk. You even have the flexibility to start from as low as Rs. 500. You can either start investing a lump-sum amount, or opt for SIPs which require fixed, monthly investments. Online services allow you to buy mutual funds online. You can also monitor your portfolio, check your statements, and even switch funds from one scheme to another with great ease.
4). High liquidity
Mutual funds can be redeemed at any time as per your convenience. Some mutual funds offer an option of instant redemption, wherein your returns are instantly credited to your registered account. Liquid mutual funds can be a better alternative if you’re looking to invest in fixed deposits.
5). Well-regulated and transparent
All mutual funds companies are extremely well regulated by the Securities and Exchange Board of India (SEBI). The mutual funds companies have to disclose all details regarding your investment as a part of the stringent regulatory process. This makes the process of mutual fund investment extremely transparent.
Mutual funds are one of the most popular modes of investment and the earlier you start, the better. Young investors can benefit from mutual funds and accumulate wealth that will eventually help them achieve their long-term goals. So, what are you waiting for? Invest in mutual funds today.