Mutual funds make you money and they are India’s present love affair. As more and more investors flock to make their wealth from mutual funds, we wonder if the trend is justified. Is investing in mutual funds beneficial? Is it worth your while? Do mutual funds investment plans really make your life better?
Find out here!
Without a doubt.
Mutual funds may be subject to market risk, but isn’t any investment? If you put your money in Fixed Deposits and Savings Accounts, you are likely to earn between 3-5% interest on average. However, if you opt for investment in mutual funds, you can earn around 8-15% returns. Now, there is the risk to think of. Take the risk only if you have sufficient savings to cover unemployment for 6 months and enough money for a rainy day. Then invest according to your risk appetite.
Did you know that you can start investing in mutual funds with a SIP as low as ₹500? Moreover, if you want to invest via the lump sum you can start as low as ₹1000. This is not an exorbitant amount for any urban family, nor is a SIP amount of ₹500 for a second-tier city resident. Therefore, invest in mutual funds, earn hefty returns and make your life better.
Stocks are riskier than mutual funds. This is an investment staple knowledge. Hence, if you are looking to increase your wealth, which in turn will make your life easier, choose mutual funds as an investment vehicle. They are less risky than stocks as the money is pooled from several investors and invested into different types of underlying assets. Hence, if one asset fails, others are there to tide over the loss.
The so-called eighth wonder of the world is compounding. It means the returns from the mutual funds are reinvested back into the same mutual funds. Your investments grow at a steady pace in comparison to other investment vehicles. Hence, the earlier you start investing in mutual funds, it’s more advantageous for you.
Did you know that you can save on your taxes with mutual funds? Invest in ELSS which is a tax saving mutual fund class. You can qualify for tax savings up to ₹1.5 lakh per annum according to Section 80C of the Income Tax Act 1961. Although you have to pay LTCG tax, the gains from ELSS are significantly higher than offset the taxes you have to pay. Hasn’t your life become better with this tax saving investment?
Whenever you invest in any vehicle, either gold, real estate, stocks or mutual funds, you think of liquidity. This is because there may be times when you need to use that money. These investment vehicles are highly liquid, especially open-ended funds. All you have to do is exit the mutual fund with a minimal exit load. Hence, if you want a highly liquid investment vehicle, mutual funds can make your life better.
Mutual funds can help you achieve your financial goals faster than mere savings. Since with mutual funds, one can appreciate wealth faster, they are a great way to achieve your financial goals. For example, your children’s education, holidays, retirement, travelling. Everyone has goals that they wish to achieve, and mutual funds can help you to achieve those goals.
In conclusion, mutual funds certainly make your life better in many ways. They are tax saving, highly liquid, capital appreciators and help you to achieve financial goals. Hence, investing in these financial instruments can greatly
The best way to invest in mutual funds investment plans is through the help of a financial advisor like Money Assist. Financial advisors have years of experience in the field of mutual fund investing and can make proper recommendations to choose the right mutual funds.
