Why Investing In Mutual Funds Is Beneficial - My Money Manager Recommends

Why Investing In Mutual Funds Is Beneficial - My Money Manager Recommends 

1.    Diversification :

As the wise saying goes ‘do not put all eggs in one basket’, with the assorted range of assets available to allocate under mutual funds, the risks are reduced to a great extent. You can invest across industries and geographies.

2.    Proficient Management:

Experienced and qualified professionals along with equally proficient team manage these funds. The fund managers expertly analyse the market and take decisions aligned with the mutual funds scheme’s objectives.

3.    Economies Of Scale:

Mutual Fund managers usually buy shares of big corporations which require huge volumes and huge capital. The typical investors can avail benefits of the shares of these big corporations through mutual funds, as they can start investing with as little as Rs. 500 in Systematic Investment Plans.

4.    Convenience and Choice:

Right to choose from the diverse range of mutual funds schemes managed by proficient fund managers available at low cost which suits your financial needs and goals is of course a great convenience for today’s generation.

5.    Better Returns:

Based on the historical data, mutual funds have the potential to deliver better returns in medium term or long term investments as compared to the traditional investments in bank deposits.

6.    Liquidity:

In case of open ended mutual fund schemes investors can redeem part of full investments on any business day at the NAV (Net Asset Value). In case it is a closed ended mutual fund schemes, it mentions if it can be traded in stock exchange.

7.    Transparent:

Various publications and rating agencies regularly monitor and review the performance of a mutual fund. Daily NAV, fund manager’s forecasts and strategies, etc, give a clear reflection of the credibility of the mutual fund schemes.

8.    Safe:

All mutual funds are required to follow the strict regulations and guide lines drafted to protect the interests of the investors. All mutual funds are registered with SEBI (Securities Exchange Board of India) and all mutual fund advisors are required to be registered with AMFI (Association of Mutual Funds of India); Objectives of which are investor protection and investor awareness.

Every Investment attracts some risks. Skilled Financial Advisors with tactful selection of investment opportunity and allocation of funds based on the financial goals of the investor can mitigate the risks and at the same time cater to the potential of higher returns.

Contact us to learn more about Mutual funds and Financial Planning at www.mymoneymanager.net

"Mutual Funds are subject to market risk. Please read the offer document carefully before investing"