Mutual Funds
Mutual Fund Consultants in Chennai
WHY INVEST IN MUTUAL FUNDS?
As we all know that investment goals vary from person to person depending on age, financial surplus, income, etc. – It helps to reach financial goals such as post-retirement expenses, money for children’s education or marriage, house purchase, vacations, etc. – the investment products required to achieve these goals will also vary. Mutual funds provide certain distinct advantages over investing in individual securities. Mutual funds offer multiple choices for investment across the equity market, corporate bonds, government securities, and money market instruments, providing an excellent avenue for retail investors to participate and benefit from the uptrends in capital markets. The main advantages that we get by investing in mutual funds are it gets diversified into various investment baskets, various asset classes, various sectors and various stocks and debentures. Investors will get all these advantages by not involving them directly and they can save their time and effort by leaving the investment decisions to a professional fund manager.
Mutual Fund Consultants In Chennai – Are Ideal For Investors Who –
- Will be suitable for investors who lack the knowledge or skill/experience of investing in stock markets directly.
- want to grow their wealth, but do not have the inclination or time to research the equity market.
- wish to invest only small amounts through a monthly investment option or lumpsum option and look for long-term wealth creation.
- Will be suitable for investors who want to have a regular monthly income with good capital appreciation.
How Mutual Funds Work (Mutual Fund Consultants in Chennai)
A mutual fund is an investment vehicle in which investor pool with a common financial objective. For example, those who invest in debt mutual funds are most likely conservative and looking for steady income generation, for the investors who are looking for higher yield, have the risk-taking ability and who can sustain the market volatility can choose Equity funds.
- A mutual fund offers convenience, simplicity, diversification, adequate liquidity without any lock-in, various investment options, transparency, tax benefit, good returns and professional money management, etc.,
Fund managers use their expertise and knowledge to make the most opportunistic investments in various securities because of which investor generates higher returns than managing the money on their own. These securities could be stocks, bonds, or money-market instruments such as Treasury Bills amongst others.
Modes Of Investments In Mutual Funds
Let’s say you decide it’s best to invest it in a mutual fund instead of leaving your money idle. There are two options available for the investors to choose
- Lumpsum
- SIP
You can choose to make a lump sum investment if you have lumpsum money and wants to build wealth or you got the option of investing Lumpsum and getting monthly returns to meet your monthly expenses as well along with the capital appreciation.
But, what if you are a salaried employee who wants to build the corpus for your retirement or purchasing a property or for your children’s education or marriage? Then in that case you have to invest a smaller amount from their monthly salary into mutual funds. In that case, you can choose a Systematic Investment Plan (SIP).
Benefits Of SIP
- You can choose any date for your SIP
- You can redeem your SIP at any time
- You can stop your SIP anytime
- No restriction on the amount
- You can stop your SIP and let your investment grow
- You can increase or decrease your SIP amount anytime
Advantages Of Investing In Mutual Funds
Managed By Professionals
Most of us do not have adequate time and knowledge to manage our wealth. The biggest benefit of Mutual Fund investments is that they are managed by experienced and professional Fund Managers, who time the market and allocate funds in debt, equities, and other money market instruments, based on their in-depth knowledge of market movements.
Diversification And Risk Mitigation
Depending upon the risk appetite of an investor Mutual Fund Consultants in Chennai offers the advantage of investing in several asset classes in a single scheme. This feature gives you access to a basket of high-returns-generating equity securities, low-risk fixed-income debt instruments, gold, international market exposure and balanced funds (a mix of equity and debt). This permutation and combination of assets lower your overall risk and assist with portfolio diversification.
Tax Benefits
Investors also get tax benefits from investing in Mutual Fund Consultants in Chennai like Equity Linked Savings Schemes (ELSS). ELSS investments qualify for annual income deductions of up to INR 150,000 under Section 80C of the IT Act, 1961, which directly results in tax savings of up to INR 46,800 for taxpayers in the 30% tax slab.
Liquidity
Mutual Fund investments are highly liquid. You can buy and sell Mutual Fund units at the prevailing Net Asset Value (NAV) of the day. For instance, Debt Funds like Liquid Funds have a shorter redemption time than most funds. However, ELSS Funds come with a mandatory 3-year lock-in period and are not as liquifiable.
Conclusion
With so many benefits of Mutual Funds, you ensure you select Mutual Fund schemes that align with your goals and investment horizons. Let fund managers work their magic while you enjoy inflation-adjusted returns, tax and portfolio diversification benefits.C
Address
No.30A, Second Floor, Medavakkam Main Rd, opposite of HDFC Bank, Keelkattalai, Chennai, Tamil Nadu 600117
Email ID
helpdesk@futurewealthinvestments.com mail2futurewealth@gmail.com
Phone No
+91 - 8148182350