Investment- Flexible
You have the flexibility to invest in mutual funds according to your capacity, both in terms of investment and risk consumption. For example- if you wish to aggressively see your investment grow then you better opt for equity mutual funds or else stick to the secure and steady debt mutual funds.Leverage- Compound
You would reap benefits from the golden law of compounding as your initial returns start to yield returns of their own. Yes, this principle is akin to compound interest. Thus, it would be wiser for you to start investing in mutual funds as soon as possible.Management- Professional
Let's face the facts, not all of us are well-equipped to manage our funds. In contrast to that, mutual funds are managed by professionals with expertise. From the initial consulting to the final withdrawal, they act as your guide. They oversee your investment and apply strategies to build a robust portfolio.Risks- Diversification
Warren Buffet, the Oracle of Omaha, famously said "Do not put all your eggs in one basket." You would be better off believing in his mantra and letting mutual funds spread your risks over a variety of funds. For example, a well-balanced portfolio should be around 70% equity mutual funds and 30% debt mutual funds.Taxes- Save
Apart from equity mutual funds and debt mutual funds, you can also opt to invest in ELSS mutual funds to save taxes on your hard-earned money. These funds allow a tax exemption of up to ₹1.5 lakh per year under section 80C of the Income Tax Act.Now that you know a bit about mutual funds, are you going to opt for the steady debt mutual funds or choose the risky but rewarding equity mutual funds? Please share your wisdom in the comments section.
No comments:
Post a Comment