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If you haven’t seen one of the numerous ads on TV and everywhere else about how investing in mutual funds, you’re probably living under a rock. Mutual fund investment is THE investment right now.
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If you haven’t seen one of the numerous ads on TV and everywhere else about how investing in mutual funds, you’re probably living under a rock. • Mutual fund investment is THE investment right now. • They’re the best way to invest your money for long term gains. • But are they really worth all the hype they’re generating right now? • Is it worth putting a part of your earnings aside to for such a long period of time? • Can mutual funds guarantee returns at the end of the term?
The answers to these questions are not easy. • There is no sure shot way of making easy money, but as far as long-term returns go, mutual funds are a safe bet. • If you aren’t convinced about Mutual Fund Investmentthere are five reasons why you should invest in them.
The reason why people hesitate while investing in stocks is the uncertainty and the lack of professional approach. • But when you deal with mutual funds or equity, your money is invested by a professional financial analyst or investment banker. • Your money is invested in the right places, after research and proper analysis. This gives some form of security to your investment.
Mutual funds provide the right avenue for investing in a variety of market-linked instruments, which have time and again delivered superior returns compared to other traditional investment options. • Debt funds have consistently beaten fixed deposit returns, and with bank interest rates going south, they present a good investment choice for investors with lower risk appetites. • For the more adventurous investors, equities (shares) present a great investment avenue, for higher, inflation-beating returns.
Mutual funds isn’t an investment that requires you to put a big chunk of your money in one place all at the same time, like property or even gold. • You can invest in mutual funds by setting up a Systematic Investment Plan (SIP). • In this plan you can set aside a certain part of your income to be deducted and invested in mutual funds. • The amount can be based on your income, your investment capacity and your desire to invest.
Most investment instruments like fixed deposits, PPF and so on come with a set lock-in period. • In that period, it is difficult, it no impossible to get your hands on that money, even though it is yours. • Mutual funds come with a short or even no lock-in period. • Most funds do not have a lock-in period and give you the flexibility to redeem your money when you need it. • Even tax-saving Equity Linked Savings Schemes (ELSS) come with a short lock-in of only 3 years.
Investing in mutual funds is super easy and does not require you to carry hundreds of documents to and from the bank. • You can invest in Mutual Funds Onlineall while sitting in your living room.
