Why mutual funds?
Ok, so investing in stocks or government securities for example can be done individually and you feel you don't need professional help to manage such investments. Wrong. Investing in the markets is not simply choosing products, filling up forms and writing cheques. The process becomes fairly complex when more than a couple of products are involved and almost impossible for a run-of-the-mill investor looking at multiple mutual funds as a secondary form of investment. With professionally managed mutual funds, you are assured of intelligent people with years of background in market analysis examining the funds and investing in the most profitable ones. With mutual funds, you get:
Right amount of diversification
Mutual funds allow you to diversify your investment across assets and asset classes, something that is very difficult to do on your own.
Flexibility
You are given options to pick any type of funds with any type of risk profile associated with them, and bundle all of them into a single package. You can cover yourself up for eventualities and needs quite easily with all the data and options available to you from AMCs.
Professional managers
The fund managers are usually very experienced people who have years of experience handling different types of assets. And what's more, you will be given detailed profile of your fund managers so that you know who's actually handling your hard-earned money.
Accessibility
There's nothing more convenient than a central database providing you all information and even highlighting what's best for you. This is possible through mutual funds.
Liquidity
Your fixed deposit may be offering decent returns without option for liquidity, or the stock market is offering high profits but equally high chance of failure with easy liquidity. A mutual fund will balance out all this and offer you good returns while keeping the option for liquidity open through open-ended fund investments.
Tax benefits
There are tax benefits associated with mutual funds. Detailed information on this can be found in another article on this series.
Finally, investing in mutual funds can be very exciting as the profits can be very high while the risk may equally high. It is a great way to manage your surplus funds and get a feel of the various investment avenues at your disposal.
Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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