Professional Financial Experts
Every mutual fund scheme has a well-defined objective and behind every scheme, there is a dedicated team of financial experts working in tandem with specialized investment research team. These experts diligently and judiciously study companies, their products and performance, and after thorough analysis, they decide on the best investment option most aptly suited to achieve the scheme’s objective as well as investor’s financial goals. So, our clients have to sit back and not be concerned in regards to the knowledge and understanding of managing their investments.
Diversifying Risk
It plays a very big part in the success of any portfolio. Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.
Minimizing Costs
Compared to direct investment in the share market, making investments through mutual funds is a less expensive affair that helps minimize an investor’s overall cost of investment. Through mutual funds, the economy of scale tips in the investor’s favour as he will enjoy special benefits in terms of brokerage, custodial fees, etc.
Liquidity
You can encash your money from a mutual fund on immediate basis when compared with other forms of savings like the Public Provident Fund or National Savings Scheme. You can withdraw or redeem money at the Net Asset Value related prices in the open-end schemes. In closed-end schemes, lock in period is mentioned, investor cannot redeem his investment until that period.
Variety of Investment
There is no shortage of variety when investing in mutual funds. There are funds that focus on blue-chip stocks, technology stocks, bonds or a mix of stocks and bonds and with due assistance from a financial expert, the investor can choose a scheme that aptly fits his requirements, and helps him achieve maximum profitability.
Investor Safety
Registration of Mutual Funds with SEBI is mandatory. With investor interest at the helm, SEBI has laid down strict regulations to safeguard investors against possible frauds, and every company issuing or dealing in Mutual Funds must abide by them.
Rate of Return
The return potential of medium to long term Mutual Funds multiplies manifold, resulting in greater profitability for investors in the long-term.
Transparency
Mutual Funds are the most transparent form of investment. Investors will receive detailed information and timely updates about the nature of investments made, fund manager’s investment strategy behind the investments, the exact amount invested in each type of security, etc.
Convenience
Mutual Funds facilitate easy and disciplined investment as well as ensure easy withdrawal of funds as per investor’s convenience.
Choice of Investment
There are different types of Mutual Funds across varied sectors, and with due assistance from a financial expert, the investor can choose a scheme that aptly fits his requirements, and helps him achieve maximum profitability.
