The Mutual Funds in India

Are you looking for an investment option that helps you to become financially independent?

Let’s check how mutual funds are the best investment choice in India at present.


Are you looking for an investment option that helps you to grow your money and makes you financially independent? When it comes to investment choices, you can find an abundance of options in India, from fixed deposits to bonds, money market securities, mutual funds, real estate, and gold. Choosing the best one can be a tough decision as each of them its own benefits and challenges. Even if there are plenty of choices for investment in India, many people prefer mutual funds to invest their money to reach their financial goals and build wealth. Let’s check how mutual funds are the best investment choice in India at present.

Why mutual funds?

Mutual funds are the most preferred investment in India these days because of the advantages that it offers. As a financial vehicle, mutual funds collect money from different investors to make a pool, and fund managers invest that money in securities like shares, government bonds, commercial papers to attain maximum returns for the investors. Investors can invest their hard-earned money in a diversified assortment of securities with the help of experienced and proficient fund managers. They design and manage the portfolio of investors in such a way that it matches the financial objectives of their clients. Mutual funds come in different varieties and flavors to meet the financial goals of investors.

Different types of mutual funds

Investors should get an idea about the different types of mutual funds available in the country before investing in them. In India, these funds can be classified into different categories, like debt funds, equity funds, index funds, money market funds, hybrid funds, fixed-income funds and other funds based on their principal investments. An investor can choose the best mutual fund based on his or her financial goals, risk appetite, and time horizon. In India, mutual funds are divided into Equity/growth funds, debt/income funds, balanced funds, money market/Liquid funds, and gilt fund based on its investment objectives. You can find three types of mutual funds based on its maturity period. They are open-ended funds, close-ended funds, and Interval funds. Other popular mutual funds available for you to invest your money include tax-saving funds, index funds, and sector-specific funds.

How mutual funds operate

Mutual funds are set up in India like trust with an Asset Management Company (AMC), Sponsor, and trustees. Regulated under the SEBI (Mutual Funds) Regulations 1996 with a stipulated legal structure, the Asset Management Company is managing the investments and other activities of the mutual fund. As mentioned above, a mutual fund is a professionally managed investment vehicle that pools in money from different investors to invest in securities to get better returns. Each mutual fund launched in the country has an investment objective, and the fund invest based on the financial objective, risk appetite, and time horizon.

Benefits of investing in mutual funds

A mutual fund is a healthy investment option that offers several benefits. If you are interested in investing in a mutual fund, you can invest through its SIP (Systematic Investment Plan). Here are the advantages of investing in mutual funds:

  • Professional management
  • Diversification
  • Low -cost
  • Tax beneficial
  • Liquidity
  • Ease of investment
  • Benefit of SIP
  • Safety and transparency

Mutual funds are one of the best investment options in India for people who wish to fulfill their financial goals. You can seek professional help if you find difficulty to understand the complexities of mutual fund markets.

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