Why Should You Buy Mutual Funds?

Old as well as new investors get easily attracted by mutual funds to invest money. For the uninitiated, a mutual fund is a type of investment program funded by investors to invest in stocks or equities, money market instruments, bonds or debts, and other assets. Professional money managers operate the mutual funds and decide where to invest your money in order to produce capital gains. If you have some long-term financial goals, it’s better to look for the best mutual funds investment in India and increase capital gains.

Here are 4 reasons why you should buy mutual funds in India:

Diversification 

As it sounds, mutual funds provide a great mix of investments and assets within a portfolio, thus reducing risks. Mutual funds are a way to achieve diversification faster and easier than individual securities.

Liquidity 

Your money is invested in more than one asset and you can easily sell your fund holdings to meet your current financial requirements. And, the money comes to your account as quickly as you sell the funds.

Easy to access

Mutual funds in India can be easily brought and sold on major stock exchanges. For certain type of assets, such as foreign equities, mutual funds are the most practical, and sometimes, the only way to participate.

Professional money management 

Mutual funds have very low investment minimums and professional portfolio managers supervise the fund's investments in a way to gain maximum returns with minimum expenses.

Best Mutual Funds in India – Choosing the Best One

When it comes to investment, people want to play it as safe as possible. This is why they keep postponing their investment plans till infinity. Usually, they begin by a small Google research with ‘the best mutual funds in India’. Search engine throws up many results but that doesn’t give any confidence to first time investors who remain uncertain about the reliability of the list. While the list containing the best mutual funds in India 2019 may be long, finding the one depends on several factors. 

How to choose a mutual fund for investment? 

You must keep in mind a few pointers if you want to choose the best mutual fund. The basis of selection should be:

• Financial goal

• Risk profile

•Investment horizon

Your long-term and short-term financial goals can also have an impact on selection. If you have to meet your goals in less than five years, debt mutual fund schemes should be in your consideration. For long-term goals of more than five years, hybrid or equity schemes may be a preferred choice.

Also, you should consider the risk factor. Remember, all hybrid or debt or equity mutual funds do not carry the same amount of risk. Some of them are riskier than the other. For instance, a small cap scheme is riskier than a large cap scheme. And, overnight and liquid fund schemes carry the minimum risk among the debt mutual funds.

This is why, it is recommended to carefully analyse the mutual funds in India and consider personal risk appetite while choosing a mutual fund scheme.

Best Mutual Fund Investment In India 2016

the constant rise in inflation, it is very difficult for the common man to put more money into savings. Main priorities of life like home, child's education, retirement planning etc. are being compromised and the common man is forced to think that what will he get during his late years in life? people like to go safe and that's why they invest in traditional options like savings account, Fixed deposits, insurances, national saving certificates and PPF etc. but these options don't offer satisfactory returns as compared to increase in inflation.

The modern approach of investment is investing your money into mutual funds. This type of investment allows you to invest small amount into a pool of money or fund which is being used for diversified securities and it is constantly watched by a fund manager. Some of the popular products of mutual funds are:

·         Exchange-traded funds

·        

Fixed Maturity Plans

·         Sectoral Funds

·         Fund of funds

It has many more products to offer which caters to your every objective whether it is money gain or convenience or tax benefits.

Mutual fund investment India

Indians are known for their money savings nature and smart investment steps. Here are some advantages which has attracted the Indian investors towards mutual funds investments.

Overcome inflation

Mutual funds helps you to get better amount on fund's maturity which are generally inflation adjusted returns. It is better than keeping your money idle in your saving account because when you think that your money will grow there, you don't consider the fact that inflation can reduce its value of the matured amount.

Expert's assistance

Mutual funds are supported by a research team and managed efficiently by experienced and skilled fund managers which takes financial decisions on your behalf by analyzing the performance and prospects available in the market.

Convenient and time saving

The option of low investment amount of mutual funds enables its investors to purchase or sell them on any business day. Thus, they are free to carry on their professional commitments without thinking too much about their investments.

less expensive

It offers low cost investment options as compared to investing a big amount in capital markets. It means one can start with a small amount (minimum rupees 500) and get the benefits of long term equity investments.

Diversified investment

This scheme invest your money in different securities to lower the market risk and give you high returns and thus offers an excellent investment option for the investors with limited capital.

Safety and transparency

Funds managers notify their investors about their investment's current value and market strategy on regular basis so tell you that how your investment is performing in market.

To know more about best mutual funds for sip in India, just log on to fundsindia.com. Know about the various investment plans from the experts to plan your investment today.

Top & Best Equity Performing Mutual Funds Investment Plans

You want to grow your money but whenever you think about the conventional ways of money savings like fixed deposit and insurance policies, you don't feel satisfied with the maturity amount. BECAUSE you want more, you want to maximize your money returns!! Now the question arises that is there any way to grow your money which gives you higher returns?

The answer of your money saving problem is mutual funds. You must have come across this term through television advertisement, billboard banners, friends or colleagues. At first, you feel very optimistic about investing your money in it but when you look at the statement at the bottom line "Mutual funds are subjected to market risks, read all scheme related documents carefully" then an alarm bell starts ringing in your mind.

You started analyzing your financial knowledge and when you feel it is not enough, you look at the net for answers but the financial terms such as open end funds, close end funds, Equity Mutual Funds For Entrepreneurs, debt funds etc. confuse you. You think of taking an expert advice but the thought of their service charges stops you.

What is mutual fund and why should you invest in it?

Mutual funds is the modern way of increasing your money and offers a chance to choose between stable or aggressive growth of money or both types of growth by investing your money in the stocks, bonds and other securities depending on to the risk type you can afford. Now the next question, how you should invest in it?

With inflation at its peak, how do you think you can make your dreams of buying your own house or car a reality? Mutual funds can help you in achieving your objectives but why we all hesitated when it comes to invest in this avenue. Is our limited knowledge about this scheme or the associated risk factor is the only reason. No there are some more common concerns regarding it which are:

·        

Fear of filling forms (which may be very confusing)

·         Going through several bank brochures (and not getting a single word)

·         Understanding complex calculations (it is worse when mathematics is not your favorite subject)

·         Getting knowledge about stock market (seems a tiresome and boring task)

In this scenario, a mutual fund expert like www.investguru.in helps you in understanding the basics and benefits of this amazing investing plan. If you want to know more about investing in mutual funds India, then visit us to ask your queries and know the ways to flourish your money.

How To Choose The Best Tax Saving Mutual Funds In India

When it comes to money saving, tax saving investment schemes helps a lot in saving as much as possible. Tax planning is very important while deciding your monthly and annual house budget. If you are earning a taxable amount then you can take benefit of sec 80 C of the Income Tax Act which allows some tax relief if you invest into certain investment schemes. Best Taxsaving mutual funds or Equity Linked Saving Scheme (ELSS) is one of the popular investment schemes to yield the tax deductions.

What is tax saving mutual fund or ELSS?

This is an investment scheme which offers you twin benefits i.e. money growth and tax benefits. Since the equity market is growing therefore there is an increase in investment in ELSS.

Features of ELSS

·     

    It is a diversified equity mutual fund means your money will be invested in different government securities, bonds and stock but majority of the capital goes to equities. The maturity amount will reflect the returns from the equity markets.

·         It has a lock in period of 3 years from the date of investment.

·         One can exit ELSS by selling it after the lock in period (i.e. 3 years)

·         It has both dividend and growth options

·         Investors get a lump sum amount when lock in period is over in the growth scheme

·         In dividend scheme, investor get a regular income whenever dividend is declared even during the lock in period.

·         Returns from this scheme is tax free and you can claim up to 1 lakh of this investment as a deduction from your total taxable income in financial year under the Sec 80C of IT Act.

What to look for in an ELSS fund?

Since this is an equity mutual fund therefore you should do a thorough research before investing in any such fund. Here are some important things you should focus on:

·         Long term performance of the fund in market

·         Essential fund details like

§  Investment approach of the fund manager

§  Portfolio of the fund

§  Fund's expense ration

§  Volatility history of the fund

Benefits of ELSS as compared to other tax saving approaches (PPF, FDs, NSC)

§  small lock in period

§  gives you better returns

§  offers you an option of investing in SIP

Shortcomings of ELSS

§  Subjected to market risk

§  Can't withdraw the money before maturity date

If you are ready for investment and seeking more details along with financial expert's comments then visit fundsindia.com to see the list of top Indian mutual funds and the related information. Invest smart and stay happy!!