Skip to content

Reason Why people invest in Mutual funds.

Sharp rise in Mutual fund inflow

A mutual fund collects money from a number of investors and professional fund managers after thorough analysis invests those funds in securities such as stocks and bonds. The mutual fund's holdings are referred to as its portfolio. Mutual fund units are purchased by investors. Each unit represents an investor's ownership of the fund and its earnings.

Reason Why people invest in Mutual funds.

Diversification
Never put all your eggs in one basket, in the same way, Mutual funds managers invest in a range of companies and industries according to the theme of the fund.

Liquid
Open-end Mutual funds prices are calculated daily and can be redeemed easily, while closed-ended funds are traded on the exchange, and price discovery is possible.

Regulated
Mutual funds are regulated by the Securities and exchange board of India (SEBI) which monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors, formulating regulations and guidelines.

Professional management
The fund manager is generally highly qualified and experienced in markets and can be managing the portfolio through research and investment with due diligence.

Affordable
Investing in a mutual fund is very convenient due to the low investment amounts and also the ability to buy or sell them on any business day. Mutual funds maximize the principle of economies of scale.

Protection against Inflation
When an economy goes through a boom period or inflationary cycle, prices of property generally goes up and so does the rental income. Which in turn increase the prices of funds assets and hence REITs maintain the purchasing power.

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *

equity

    20

    Per order + Get Instant Pledge Benefits* + Zero delivery Brokerage

    10

    Per order only (No hidden charges)

    Open FREE Demat Account in less than 10 minutes (Commodity & Currency)

    20

    Per order + Get Instant Pledge Benefits* + Zero delivery Brokerage

    10

    Per order only (No hidden charges)

    Open FREE Demat Account in less than 10 minutes

    20

    Per order + Get Instant Pledge Benefits* + Zero delivery Brokerage

    10

    Per order only (No hidden charges)

    Related Posts

    Indexation-Inflation-Capital-gain
    Indexation Because all income in India is taxed, you risk losing a significant portion of...
    Mutual-funds-Glossary
    SIP A systematic Investment Plan, also known as a SIP, allows you to invest a...
    Internationalisation-of-Indian-Rupee
    An ETF is a stock basket created by pooling small-denomination investments from various investors that...