Mutual Funds offer a range of unique advantages unmatched by most other investment avenues.
Mutual Funds are managed by qualified and experienced professionals, who have access to company research, analysts, critical and timely market information and methodology to make sound investment decisions. They are best qualified to identify and maximize investment opportunities.
By diversifying your portfolio, Mutual Funds help you reduce the overall investment risk. To achieve a comparable diversification when you invest directly in equities, you would need to invest a huge amount. Mutual funds offer you diversification across asset classes as well as within a specific asset class.
Speedy access to your money:
Investors in open-ended mutual funds can buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis on all working days.
Since the minimum amount to be invested in a mutual fund is low, you get access to a diversified portfolio even with a very small amount of money.
Equity Linked Savings Schemes (ELSS) offer tax rebates to investors under Section 80C of the Income Tax Act. Also, Dividend income from Equity and Equity-oriented Mutual Funds is tax-free in the hands of the investor.
Mutual Funds benefit from economies of scale in brokerage, custodial and other fees translating into lower costs for investors.
Since the fund portfolios are disclosed to investors on a regular basis, Mutual Funds are a transparent investment vehicle.
Regulated for investor protection:
The Mutual Funds sector is regulated to safeguard investor interests.