Mutual Fund Investments

Why Mutual Funds are Best Compared to Other Investment Options?

- Akhil Krishnan B / 02-Sep-2021



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With regards to saving or investing money, most Indians favour traditional approaches like Gold, Fixed deposits (FDs) or Public Provident Fund (PPF). Even though these options provide capital conservation and stable returns, mutual funds are a decent choice for short-term just as long term returns. Investors are typically excited about putting resources into Mutual Funds due to risk management.

Let us understand why Mutual Fund Investment is the ideal choice compared with other investment options in the market.

Mutual Fund Investment: Building Economy through the Salaried Class

An increasing number of Mutual fund Investors and AUM (Asset under Management) has created record levels in the past few years in India. Developing financial awareness is one of the essential reasons why investing has acquired the status that it appropriately merits.

As Mutual funds meet the investment needs of each kind of Investor, they have turned into a popular option for new Investors.

Mutual fund Investing has a critical commitment with regards to the advancement of the Indian Economy. The Indian financial market has seen an extraordinary disturbance in the mid-eighties and nineties. Mutual Funds investment has gone about as a scaffold interfacing the hole between the market interests for funds in the financial markets.

Mutual funds have extraordinarily propelled since 2003. Indians by and large save up to 30% of their salaried income which is exceptionally high. Mutual funds have been a decent alternative for investing money in the salaried class. The diversification of Mutual fund plans has permitted more investors to come in and put together resources.

Mutual funds decidedly affect the finance sector as far as a reliable investment. The pooled cash is giving some assistance in the improvement of the industry.

Benefits of Choosing Mutual Fund Investment

Liquidity

The primary benefit of putting resources into a Mutual Fund is that the Investor can reclaim the units anytime. As opposed to Fixed Deposits, Mutual Funds have adaptable withdrawal yet factors like the pre-exit penalty and exit load ought to be thought about.

Flexibility to put resources into Smaller Amounts

One of the main advantages of Mutual Funds is their flexible nature. Investors need not put in an immense amount of cash to invest in a Mutual Fund. Investment can be according to the income position.

On the off chance that you draw a month to month pay, you can go for a Systematic Investment Plan (SIP). Through SIP a proper sum is contributed either month to month or quarterly according to your budget and accommodation.

Plans for Every Financial Goal

The most awesome aspect of Mutual Funds is the minimum amount of investment can be Rs. 500. What's more, the highest can go up to whatever an Investor wishes to contribute.

The only point one ought to consider before putting resources into the Mutual Funds is their expenses, income, risk-taking capacity, and investment objectives. Accordingly, every person from varying backgrounds is allowed to invest in a Mutual Fund regardless of their income.

The Best Tax Saving Choice for Investors

Mutual Funds give the best tax saving alternatives. Under section 80C of the Income Tax Act, ELSS Mutual Funds have a tax exclusion of Rs. 1.5 lakh a year. Any remaining Mutual Funds in India are tax based on the sort of investment and the tenure of investment. ELSS Tax Saving Mutual Funds can convey more significant returns than other tax saving instruments like NPS, Tax Saving FDs, and PPF.

Security and Transparency

With the presentation of SEBI rules, all results of a Mutual Fund have been labelled. This implies that all Mutual Fund plans will have a colour coding. This assists an Investor with discovering the risk level of his investment, consequently making the whole course of investment straightforward and safe.

This colour coding utilizes 3 tones demonstrating various degrees of hazard

  • Blue = low risk
  • Yellow = medium risk
  • Brown = high risk

Investors are likewise allowed to check the certifications of the fund manager, his qualifications, and long periods of involvement, and AUM, dissolvability details of the fund house.

Mutual Fund Investment at MyWealthJunction

At MyWealthJunction, we permit our Investors to pick how their investments develop while adjusting the growth and risk proportion. Investors are likewise allowed to change their investment styles en route. Our Investors are allowed to keep tabs on their growth occasionally.

While the wide universe of investment can appear to be intense! Knowing your motivation for investing is the best advance to put your foot forward. As it further assists with choosing the right investment option and decide the specific sum you might have to invest to meet your financial goal.

At MyWealthJunction you get the opportunity to invest in a paperless and hassle-free manner in only three simple steps:

  1. Sign up in MyWealthJunction to make an account.
  2. Enter every one of the mentioned details.
  3. Get your KYC done at the click of a button.

Get on your investment with MyWealthJunction and lead yourself to progress today with our constant portfolio audit and rebalancing.

Conclusion

There is no specific investment alternative that suits each Investor. Yet, there is no denying the way that Mutual funds are the nearest to what in particular can be viewed as an investment for everybody. With such countless various sorts of Mutual funds schemes now accessible, it is a lot conceivable that each Investor could discover something that impeccably lives up to their necessities and desires the best.

To accomplish their financial objectives one requires to go through a ton of cycles that may not be simple for another Investor. We, at MyWealthJunction , ensure that our Investors accomplish their financial objectives. We guarantee that the contributing excursion of our regarded Investors is smooth and tension free. Mutual Funds are easy to buy and track at MyWealthJunction .

We understand our Investors and appropriately have logically and algorithmically chose Mutual Funds. Our specialists have set a complete arrangement utilizing our high-level tools to gauge the goals of our Investors. We likewise make a personalized financial plan remembering the goals of our Investors.