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What are the benefits of investing in a mutual fund?

The following are the various asset classes available to an investor:

Diversification
Mutual funds provide the retail investor with the opportunity to invest in varied investment schemes at relatively lower amount. Diversification allows investors to spread their portfolio across sectors and industries, in turn reducing the overall risk on their portfolio.

Professional Management
Mutual funds provide the benefits of having professional management of money by experts.
It is ideal for retail investors who do not have time or know-how about the markets to invest in them.

Low Transaction Cost
Due to economies of scale (benefit of larger volumes), mutual funds pay lower transaction costs. The benefits are passed on to a mutual fund investor, which may not be enjoyed by an individual who enters the market directly.

Liquidity
An investor may not be able to sell some of the shares held by him very easily and quickly whereas mutual fund units can always be redeemed either on every business day in the case of open-ended schemes or during specific intervals as outlined by the fund in case of close-ended schemes.

Transparency
Funds provide investors with updated information pertaining to the markets and schemes through fact-sheets, offer documents, annual reports etc.

Flexibility
Investors benefit from the convenience and flexibility offered by mutual funds to invest in a wide range of schemes. The option of systematic (at regular intervals) investment and withdrawal is also offered to investors in most open-ended schemes.

Strict Regulation
The Mutual Fund industry in India is well-regulated by the Securities and Exchange Board of India (SEBI). All funds are registered with SEBI and complete transparency is enforced..
 
 
 
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Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

 

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

 

1.       ICICI Prudential Tax Plan

2.       Reliance Tax Saver (ELSS) Fund

3.       HDFC TaxSaver

4.       DSP BlackRock Tax Saver Fund

5.       Religare Tax Plan

6.       Franklin India TaxShield

7.       Canara Robeco Equity Tax Saver

8.       IDFC Tax Advantage (ELSS) Fund

9.       Axis Tax Saver Fund

10.    BNP Paribas Long Term Equity Fund

 

Invest in Tax Saver Mutual Funds -

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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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