Mutual Fund
Mutual Fund pools money from multiple investors to invest in stocks, bonds, or other assets. Managed by professionals, it offers diversification, liquidity, and convenience. Investors buy units, which represent a portion of the fund's holdings.
| 1. Professional Management — Mutual fund is managed by full-time, professional money managers who have the expertise, experience and resources to actively buy, sell, and monitor investments. A fund manager continuously monitors investments and rebalances the portfolio accordingly to meet the scheme’s objectives. Portfolio management by professional fund managers is one of the most important advantages of a mutual fund. |
2. Risk
Diversification — with diversification, the risk associated with one asset
class is countered by the others - so you won't have all your eggs in one
basket. Thus, risk diversification is one of the most prominent advantages of
investing in mutual funds. |
3.
Affordability & Convenience (Invest Small Amounts) — By contrast, the minimum initial
investments for most mutual funds are more affordable. |
4.
Liquidity — You can easily redeem (liquidate) units of open ended mutual fund
schemes to meet your financial needs, Also selected Mutual Fund units can be
pledge to avail loan and lending. |
| 5. Well-Regulated — Mutual Funds are regulated by the capital markets regulator, Securities and Exchange Board of India (SEBI) under SEBI (Mutual Funds) Regulations, . SEBI has laid down stringent rules and regulations keeping investor protection, transparency with appropriate risk mitigation framework and fair valuation principles. |
6. Tax Benefits —Investment in ELSS upto ₹1,50,000 qualifies for tax benefit under section 80C of the Income Tax Act, 1961. Mutual Fund investments when held for a longer term are tax efficient. AMFI Registered Mutual Fund Distributor Member of BSE Star MF |