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- Receive tailored recommendations aligned with your objectives and risk tolerance.
- Explore innovative tools such as flexible Systematic Investment Plans and trigger-based investing for smarter portfolio management.
Mutual funds are investment tools where money from various investors is pooled together to buy stocks, bonds, and other securities. Managed by professionals known as fund managers or portfolio managers, these funds distribute profits as dividends. In India, mutual funds are regulated by the Securities Exchange Board of India (SEBI), with their value per share determined daily as the net asset value (NAV). This NAV is calculated by dividing the total fund value by the number of outstanding units.
Benefits of Investing in Mutual Funds:
Expert Financial Guidance:
Mutual funds offer access to professional financial experts who meticulously analyze market trends and company performance to select the most suitable investment options aligned with the scheme’s objectives and investors’ financial goals.
Risk Diversification:
By investing in a diversified portfolio of securities, mutual funds mitigate investment risk. This broad investment approach helps cushion against potential declines in the value of any single security, a privilege typically reserved for wealthier investors.
Cost-Efficiency:
Mutual funds provide a cost-effective investment avenue, requiring lower initial investments compared to other capital market options. With options like Systematic Investment Plans (SIPs), investors can start with as little as Rs. 5,000 and contribute small amounts monthly, starting from Rs. 500.
Liquidity:
Enjoy the flexibility of immediate access to your funds with mutual funds. Unlike other savings vehicles like the public provident fund or National Savings Scheme, mutual fund investments can be easily redeemed at Net Asset Value prices in open-end schemes, with clear lock-in periods for closed-end schemes.
Investment Variety:
Mutual funds offer a wide range of investment options catering to various preferences. Whether it’s blue-chip stocks, technology stocks, bonds, or a blend of both, investors can choose schemes tailored to their requirements with guidance from financial experts, aiming for optimal profitability.