Benefits of mutual funds

BENEFITS OF MUTUAL FUND Friends, today in this series of MUTUAL FUND, we will learn about the benefits of mutual funds, what benefits we get from investing in mutual funds, and how we can benefit from investing in mutual funds. Is,

Now it is not that everyone gets only benefits from investing in Mutual Funds, it also has some disadvantages, so in this topic we will also talk about the disadvantages or RISK of investing in Mutual Funds,

BENEFITS OF MUTUAL FUNDS

The biggest reason behind doing mutual fund investment is lack of knowledge about stock market investment, or lack of time, lack of capital and control over investment risk,

There are many such reasons, due to which we want to avoid the risk of investing directly in the stock market, and want to invest with the help of mutual funds, so that we can get better returns on our investment,

In such a situation, if we talk about BENEFITS OF MUTUAL FUND, then it has many advantages, let’s talk about some major Advantage of mutual fund,

ADVANTAGE OF MUTUAL FUND

• The advantage of the knowledge and experience of the stock market expert

The biggest advantage of mutual fund investment is that we get the benefit of the knowledge and experience of the expert handling the fund.

Especially those who do not have any knowledge of the stock market and invest in mutual funds to earn better returns on their investment, then they get the benefit of the mutual fund manager’s knowledge and experience on their investment.

• Benefits of small capital investment

If mutual fund investment is being done every month through SIP, then even Rs 500 can be invested in mutual funds every month, and those who have small deposits in the form of savings can also This small amount can be properly invested with the help of mutual funds.

 

• ADVANTAGES OF DIVERSIFICATION

Mutual fund itself is a diversified investment, where according to the objective of MUTUAL FUND, investment is made in different industries and sector wise stocks, and the investor naturally gets the benefit of DIVERSIFICATION,

Especially when our investment capital is less, yet we can take advantage of diversification with the help of mutual funds,

• saving time

Once an investor invests in a mutual fund, then it is the responsibility of the MUTUAL FUND manager, the fund house and the fund manager spend their time studying and analyzing which stocks to invest in and when. how long to do

In this way, the time of a common investor is saved, and he continues to do his job and business easily, and the responsibility of looking after the investment becomes that of the fund house,

• ADVANTAGES OF ORGANIZED MUTUAL FUND MARKET

Mutual fund in india is a well regulated and organized investment market, in which ministry of finance, rbi, sebi and stock market are all included, and thus with the help of mutual fund, the common investor get the benefits of investment in this organized market .

• Liquidity of investment

Liquidity refers to the time taken to cash out an investment.
Liquidity is a very important thing in any investment, because due to the lack of LIQUIDITY in investment, sometimes that investment does not work at the time of any sudden need or the investment has to be sold cheaply, due to which the investor has to suffer a lot. Is,

One advantage of investing in mutual funds is that we can easily cash the invested amount by selling it at the market rate according to the pre-determined conditions of the mutual fund.

In this way, by investing in MUTUAL FUND, we also get the benefit of liquidity,

• Benefits of choosing mutual funds as per need

Today there are thousands of types of offers available in the mutual fund market, and new offers keep coming, so an investor has many options, and keeping in mind his needs, the investor can choose the best fund for himself. could,

• TAX BENEFITS

The benefit of DIVIDEND received from MUTUAL FUND is TAX FREE, in this way the investor gets the benefit of tax free investment,

Also, there are many different mutual fund offers available, in which the facility of saving tax is given by the government,

These are some common Benefits of Mutual Fund, apart from this there are many other benefits of mutual fund investment,

And some profit is also dependent on the investor, what kind of profit an investor is getting from any investment,

Let us now talk about the disadvantages of mutual funds

DISADVANTAGE OF MUTUAL FUND

 

• DAMAGE CAUSED BY CHANGING THE JOB OF FUND MANAGER

The manager of any mutual fund is a key person, who controls the risk and profit of investment with his understanding, now in this case the mutual fund manager is also a job-seeking person, and if he CHANGE the job, or If the fund is left midway due to any other reason, then the negative loss caused by such change on the performance of the fund is borne by the common investor.

• lack of control

You cannot give any kind of advice to MUTUAL FUND MANAGER, MUTUAL FUND MANAGER has full freedom to select stocks, in such a situation an investor lacks complete control over his investment, and we can only wait that Fund manager should do a good job, so that we can get better profit,

• No GUARANTEE is given as to how much profit will be made from MUTUAL FUND

There is no guarantee of any kind of profit or FIXED RATE OF RETURN in relation to the profit from mutual fund investment, and in this case sometimes mutual funds either give very little profit, or even give negative profit. can,

• mutual fund fee burden

There is no GUARANTEE of profit from mutual funds, but the fees charged for managing that fund are already fixed, and they are debited from the invested amount.

• Confusion in selecting MUTUAL FUND offers

There are so many mutual fund offers available in the market today that we are often very confused, and cannot select a mutual fund quickly – we do not know which mutual fund investment will be better for us, and often we Keep asking your friends or financial advisor or on the internet that “Which MUTUAL FUND is BEST for us”

SUMMARY : BENEFITS OF MUTUAL FUND

As a summary of this post of BENEFITS OF MUTUAL FUND and DISADVANTAGE of MUTUAL FUND, it can be said,

“Mutual fund investment has advantages as well as some disadvantages,” in such a situation, if you have any other type of investment plan or investment option better than mutual fund, then of course you can invest on that plan,

But my personal opinion is that, “You can invest a part of your investment portfolio in Mutual Funds”, and secondly-

Before making any kind of investment, we should keep our financial planning in mind, only then we can earn better and desired profit.