Managed by Professionals – Every Mutual fund is managed by professional fund manager. It is the duty of Fund Manager to buy and sell stocks after careful researched and increase the returns of the mutual fund.
Easy to Invest – Entering into mutual funds is very easy and requires minimum entering amount of rupees 500 per month or 5000 lump sum. Only basic documentation is required like a blank cheque, PAN Card number and address proof.
Diversification – Large and small investors needs to invest in different types of stocks and not in a single to minimize risk. Mutual funds allocate your funds in different kinds of stock so that when equity market gets crashed or very low, it does affect your funds drastically.
Liquidity – Mutual funds are liquid investments and you can withdraw funds anytime or once the lock in period is over. Mutual funds are linked to your banking account and funds get transferred automatically.
Regulated by Government – SEBI regulates all mutual funds in India on regular basis which provides comfort and assurance to its investors. All mutual funds need to submit and disclose their portfolios to SEBI every six months, which helps in keeping track of investments done by the mutual fund.
Reinvestment of Dividends – Option of reinvestment of dividends earned during the year / quarter can be reinvested into the same fund under mutual funds. Written applications are required to be submitted before hand to the mutual fund office.
Easy to Withdraw – Exiting from mutual fund is easy and money would be directly deposited into your account. Money gets deposited into your account 4-5 working days without much hassle, only written application with a blank cheque is required during withdrawal request.
No comments:
Post a Comment