Comparte Capital Investment

Benefits of investing in mutual funds in India

One of the best features of mutual funds is that it is managed by professionals.

Mutual funds offer a variety of investment options for their investors


People look for the best possible options to invest their money to fulfill their financial objectives and grow wealth. And plenty of options are available in India like shares and bank FDs for those who seek out investment choices. However, many people, especially the working group, choose mutual funds as their preferred investment option due to the key benefits that it offers. Mutual funds are easy to invest and offer a great deal of flexibility. Besides, investors can find a plethora of diversification choices with it that are not available with many other investment instruments in India. Let’s have a look at the key benefits of investing in mutual funds to grow your money.

Benefits of investing in mutual funds

Many people think to invest directly in stocks instead of investing in mutual funds as the fund managers invest the money pooled from investors in stocks. But they do not know that not all funds invest only in the share market but in different asset classes. Mutual funds have been proved as a great investment option with multiple advantages over the last two decades. Let us take a look at the benefits of investing in mutual funds.

  1. Professional management

One of the best features of mutual funds is that it is managed by professionals. They watch market, monitor economic trends, analyze securities and implement a consistent strategy to take better investment decisions.

2. Higher return potential

People choose mutual funds for investing as it can generate high returns compared to other traditional investment options.

3. Liquidity

Since mutual funds offer a high level of liquidity, an investor can redeem his or her money at any time when he or she wants. What all you need to do to redeem your money is to inform the fund house, and your money will get credited to your accounts within a couple of days

4. Portfolio Diversification

Another reason for the popularity of mutual funds is its feature of portfolio diversification. This investment choice allows you to invest in a wide range of assets. You can invest your money in a diversified portfolio of stocks across different fields.

5. Affordability

You can start investing in mutual funds to create wealth with as little as Rs.500 through its SIP. Since mutual funds trade in large volumes, their investors can enjoy less trading costs. Affordability encourages many people to choose mutual funds for investment.

6. Low investment costs

The expenses for managing the mutual fund schemes are much less than those charged by many other investment options in India.

7. Systematic Investment Plan (SIP)

Another great feature of the mutual fund is its SIP. An investor can invest his money every month in small investments through this plan, which makes him a disciplined investor. It also helps investors to average the cost of NAV when market is at high or at low.

8. Tax Benefits

An investor will be eligible for tax-deduction under Sector 80C of the Income Tax Act, 1961 if he or she invests money in mutual funds.

9. Multiple investment options

Mutual funds offer a variety of investment options for their investors based on their investment objectives.

An investor can find plenty of reasons to invest in a mutual fund like accessibility, diversification, liquidity, and systematic investing. Even if there are a plethora of investment options available in India, people choose mutual funds for investment needs as it is a simple but efficient way to fulfill their financial goals. Whether you are a professional money manager or a do-it-yourself investor, mutual funds are the best investment choice for you.

That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.

With this one can say “Mutual Fund Sahi hai”,  so let me do Nivesh