Mutual Funds

Over the years, mutual funds have emerged as a highly popular investment option among investors in India and across the globe. Here’s why mutual funds are beneficial:

• Diversification: Mutual funds give you access to a diversified portfolio. If you had to invest directly, you would have had to shell out a lot of money for diversification. In contrast, using a minor amount, you can have access to a portfolio with investments across mutliple stocks or bonds.


• Professional Management: As an investor, you conduct your own research before buying a stock or bond. However, there are so many options out there that it can become confusing. A mutual fund, however, allows you to save time and resources in this research. Experts in the asset management company will be investing on your behalf through a mutual fund.


• Timing: In the stock market, timing is one of the most important factors. A mutual fund allows you to sit back and relax, and not worry about buying or selling at the right time.


• Transaction cost: When you buy a stock or bond, you have to pay a small amount as fees every time. Imagine, if you were to buy a hundred assets to diversify your portfolio, you had to pay a charge for each of them. This is not so for a mutual fund. All you have to do is pay a small fee once.