WHY TO INVEST IN MUTUAL FUNDS?
Is the right way to make your money sit idle in the bank’s account when you can easily multiply it with the option of investing it in mutual funds and this can give a better return if you have proper and right knowledge.
The best part of investing in mutual funds is that you have no boundation of money as you can even invest the minimum of Rs. 500 with the higher returns in the future and if you are a beginner in the investment market, then mutual funds will be a good option to take the risk.
There are many reasons to invest in mutual funds which are worth to see. So, let's take a look at them:-
Compatible with inflation
Unlike many other options including fixed deposits or Recurring deposits where you get a fixed interest rate even it is not sufficient to meet the high inflation condition of today, mutual funds will adjust with the passing time.
Suppose you have invested Rs. 500 in mutual fund and will receive the returns of Rs. 525 after 1 year with the interest rate of 5% but the inflation rises above the expectation of 10% within a year, then you will receive Rs. 550 instead of the previous amount assigned.
Account managed by professionals
Not everyone of us is an expert in the trading market, so there is always a fear that your money might be in loss if you will invest in the wrong mutual fund but this is not the actual situation as your mutual funds are managed by the expert fund managers.
All the mutual funds are regulated by government-run body SEBI which makes the process transparent and secure and hence keep an eye on the fund managers who can manage the account far better than you.
Opportunity to invest in different mutual funds
It is always advised by the experts to not to invest all your money at one stock as the risk would be maximum. So, it is better to put your hard-earned money on different stocks as the loss in one would soon by compensating by the profit in another and this can be done if you have multiple options of stocks.
Mutual funds give the opportunity to invest in variable stocks thus balancing out the risky situation in future.
Online access anywhere and anytime
It is pretty obvious that no one has much time today to especially visit the branch and get the details of the ups and downs of the mutual funds. So, considering those difficulties the fund managing companies gives easy and safe online access to your account to know the daily updates of the market thus making it easier to calculate your profit or loss.