What are the benefits of investing in mutual funds?
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The advantages of mutual funds are as below:
Liquidity: You can redeem your mutual units at any point in time. This can be helpful in case of a sudden cash crunch or financial emergency.
Diversification: Mutual funds offer a great deal of diversification and are thus less volatile. Your money is invested across multiple securities, thereby safeguarding you against sudden market fluctuations.
Expert management: MFs are ideal for newer investors as an expert fund manager takes all the investment strategies and decisions. This ensures that your money is well invested, even if you have little or no market knowledge.
Flexibility: You can choose how much you want to invest and how often, thanks to SIP and lumpsum investment methods.
Accessibility: Investing in mutual funds is extremely easy! For instance, with Mirae Asset, you can sign-up and start investing in as little as 5 minutes**.
Suited for every financial goal: You can invest in various mutual fund schemes to achieve different financial goals. You can also choose varying schemes with varying investments tuned to your individual risk profile.
Safe & transparent: As per the latest SEBI guidelines, all mutual funds must be labelled according to their risk levels. You can choose funds based on their star ratings and invest in the best schemes.
Tax benefits: ELSS mutual funds offer you tax benefits of up to INR 150,000 under Section 80C of the Income Tax Act of India, 1961. This benefit allows you to reduce your taxable income.