AMFI Certified Mutual Fund Distributor: ARN 0962
Date of Regn: 30th Jan-2003 | Validity Till: 23rd
Jan-2025
Mutual funds
Today's investment will be tomorrow's treasures
You can think of mutual funds as a basket of investments. Each basket holds dozens of security types, such as stocks or bonds. Therefore, when you buy a mutual fund, you are buying a basket of investment securities, where the income is earned from dividends and interests.
Why should you choose mutual funds?
Mutual fund is regulated by SEBI, you can be assured that your investments are managed in a disciplined and regulated manner.
Higher Return PotentialBased on medium or long-term investment, mutual funds have the potential to generate a higher return, as you can invest on a diverse range of sectors and industries.
LiquidityInvestors have the advantage of getting their money back promptly; it can also be traded in the stock exchange, as offered by some schemes. A mutual fund can be converted into cash at any time as per your request.
Low CostMutual funds are less expensive. One can start with as low as Rs.500 and get the advantage of long term equity investment. Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower.
DiversificationIt helps you distribute your investment across a diverse range of assets. Mutual funds are a great investment opportunity for investors who have limited investment capital. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money.
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If you don't want to invest in companies directly, choose the right mutual fund scheme to manage your money.
How to invest in mutual fundsYou can invest in a mutual fund either via their online/mobile platform or in physical form, through an independent financial adviser (IFA), through your bank who can suggest a balanced portfolio suitable for your risk appetite. You will only require a few documents such as a photograph, PAN card, name and address proof, bank account details and KYC compliance. You can right away open a mutual fund or a demat account and start your chosen mutual fund scheme. Today, monitoring such mutual funds is extremely easy, through online market checks or through a financial advisor or through the corresponding mutual funds agent.
SIP (Systematic Investment Plan)
Time in the market is more important than timing the marketWhat is a Systematic Investment Plan? A Systematic Investment Plan or SIP is a smart and hassle-free mode for investing money in mutual funds. SIP allows you to invest a certain pre determined amount at a regular interval (weekly, monthly, quarterly, etc.) A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.
Benefits of SIP
Disciplined Saving - Discipline is the key to successful investments. When you invest through SIP, you commit yourself to save regularly. Every investment is a step towards attaining your financial objectives.
Flexibility - It is good to continue SIP investments with a long-term perspective. Investors can discontinue the plan at any time. One can also increase or decrease the amount being invested.
Long-Term Gains - Due to rupee-cost averaging (trying to buy low and sell high), SIPs have the potential to deliver attractive returns over a longer investment period.
Convenience - SIP is an easy method of investment. You can issue a standing instruction to your bank to facilitate auto-debits from your bank account.
AMFI Certified Mutual Fund Distributor. ARN 0962