Why Invest in Mutual Funds?
A mutual fund is an entity that pools the money of many investors — its unit-holders — to invest in different securities. Investments may be in shares, debt securities, money market securities or a combination of these. Those securities are professionally managed on behalf of the unit-holders, and each investor holds a pro-rata share of the portfolio i.e. entitled to any profits when the securities are sold, but subject to any losses in value as well.
Benefits of mutual fund
TRANSPARENCY
You get regular information on the value of your investment in addition to disclosure on the specific investments made by the mutual fund scheme.
LOW COST
A mutual fund lets you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales charges to own them.
LIQUIDITY
A mutual fund lets you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales charges to own them.
DIVERSIFICATION
Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.
PROFESSIONAL INVESTMENT MANAGEMENT
Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale.
CONVENIENCE & FLEXIBILTY
You own just one security rather than many, yet enjoy the benefits of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade collect the interest payments and see that your dividends on portfolio securities are received and your rights exercised.
Aditya Birla Equity CAF
Aditya Birla Equity SIP
Axis Equity & Hybrid CAF
Axis Equity & Hybrid SIP
HDFC Debt CAF
HDFC Debt SIP
HDFC Equity CAF
HDFC Equity SIP
SBI Debt Liquid Fund CAF
SBI Debt Liquid SIP
SBI Equity CAF
SBI Equity SIP
*SIP – Systematic Investment Plan | *CAF – Common Application Form