What Is Mutual Fund?
Mutual Fund is a Trust which collects the savings of numerous investors having common financial aim. This fund is diverted by Expert & Qualified Fund Manager in different sectors / instruments like Equity Share, Debentures, Government Securities, Corporate Bonds, Treasury Bill etc. Investors get their share of profit / loss in proportion to their investments.
Benefits Of Investment In Mutual Fund:
- At present Indian Economy is growing @ 1% while many companies are growing @ 20% and hence, the returns from Share Market can be as much as 15% or plus.
- Instead of Direct Investment into Share Market / Stock Exchange it is advisable to invest into Mutual Fund for more benefits at less risk factor. This is because Fund Managers of M.F. invest the funds of Investors into different instruments & hence if one sector accurse loss then it does not effect the overall scenario of Investors Investments. Thus Investing in M.F. you can avail Max. benefits at least risk / loss factor.
- If Investors Invest for 2 – 3 years then he has no effect of Weekly / Fort Nightly / Monthly rise or down fall of Share Market. It is the right time to change your mindset & leave behind the fear of small time rises & fall of Share Market & invest regularly at small intervals in M.F. If you retain your investment in M.F. for longer then you can avail more benefits ten Fixed Deposits & Bonds.
- M.F. offers different combination & offers, hence, you can choose as per your ability to sustain risk / loss. Apart from all above, M.F. gives Tax benefits as well.
Recurring Account In Mutual Fund :
- The way there are recurring accounts in Banks, Post Office, PPF & Life Insurance, in similar manner you can have recurring account in M.F. also which is called SIP ( Systematic Investment Plane ). In this also the investor can invest Rs. 1000 or above per month as per his savings. If one can maintain SIP for 5 years also then the investor can earn big profit.
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