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Why mutual fund is considered a safe and easy investment option?

Today, there are many alternatives to invest our money. However, we face the biggest challenge while selecting one from the plethora of options such as bonds, stocks and shares. Well, many people have a query about why they should think of investing in mutual funds and how safe and easy it is as an investment option.

Here are some facts which will give you a clear idea-

Mutual funds offer diversification –

The unique thing about the mutual fund is that when you buy it, you are eligible to access hundreds of bonds and individual stocks. The money which you invest does not stay unused or stay only in one asset. It is invested in various asset classes to ensure the diversity. These funds ensure that your money is protected from the market volatility.

These funds are managed professionally –

To invest in stocks and mutual funds, you will not only need the resources but the time as well. These funds allow you to invest your money and after that, the portfolio manager takes care of your investment dedicatedly. He/she decides where to invest your money and what is the right time to buy and sell your investments. Fund managers ensure that your money is invested into the proper channels making it a safe and easy investment option.

It allows low minimums –

Another reason for calling it as an easy investment option is that you can start your investment with a meager value ranging from Rs. 500 to 1000 per month.

Investors can easily liquidate their proceedings in just 2-3 days because these funds are quite fluid.

Ease of buying and selling –

These investment options are usually available through various sources like trust companies, financial planning firms, banks, investment firms. You are eligible to sell your fund units at any time if you are in need of money.

Automatic Reinvestment –

An investor can automatically and easily have dividends and capital gains reinvested into their funds without any extra fees and sales load.

They also offer transparency –

The mutual fund holdings are available publicly which makes sure that the investors are getting all for what they are paying. Regular information regarding the current value of the investment is provided by the fund managers.

Safety –

Regarding the security front, the mutual fund is always considered as a safe investment. The reason for this is that the mutual fund in India it is regulated by SEBI (Securities and Exchange Board of India and the AMFI (Association of Mutual Funds in India). Your investments are in safe hands because they are managed in a disciplined and regulated manner. In case, a mutual fund company stops its business; the stockholders will get the sum equal to their investment in the mutual funds.

Mutual fund investment is the easiest investment option and at the same time is considered as safe as well. Hurry up and plan your future investment plan through mutual funds.

Post Author: Amrina

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