New Year’s Day: it is the beginning of the year and many people consider it a good time to start a new resolution. Similarly, Akshaya Trithiya is considered as a special occasion to buy gold and jewellery. Unfortunately, there is no special day to begin your investment in mutual funds. But the good news is that you don’t need a special occasion. In fact, you can begin investing in mutual funds today itself and start reaping the benefits.
Benefits of investing in mutual funds
- High returns
On an average, mutual fund investments offer anywhere between 10-13% returns per annum. In some cases, the returns can go beyond 15%. These returns are much higher when compared to other traditional investment avenues like bank deposits. By investing in mutual funds, you can benefit from high returns and meet all your financial goals with ease.
- Vast variety of options
There are literally thousands of different mutual funds available in the market. You can choose between any of these funds based on your investment goals, risk appetite and time horizon. For example, debt funds are considered safe as they offer steady returns and the risk of capital loss is low. Equity funds offer high returns and are an ideal choice for long-term financial goals. You can also choose hybrid funds that have a mix of equity and debt in different proportions.
- Investment discipline
If you want to get better at something, you need to practice, acheter cialis en ligne practice, practice. And if you want to earn good financial returns over a long time, you need to invest, invest, invest. And for this, mutual funds are the perfect vehicle. Through the Systematic Investment Plan (SIP) approach, you can invest a sum of money in the fund on a regular basis. In fact, you can simply give a standing instruction to your bank account to transfer the amount into the fund each month. This way, you can steadily build a large corpus of money.
Imagine you have bought 500 shares of a single stock. This investment carries a considerable amount of risk because in case the stock performs poorly, you could lose a considerable amount of money. In order to achieve good diversification, you would have to actively select and invest in a bunch of different stocks. All of this can be complicated and time consuming. On the other hand, mutual funds offer a much higher degree of diversification. For example, if you invest in an index fund that tracks the BSE 500 index, your investment would give you exposure to 500 different securities in a single fund. This way, you can achieve diversification in an easy and cost-efficient manner.
- Any time and any amount
One of the best advantages of mutual funds is that you can start investing at any time. The investment process is so easy that you can simply switch on your computer and begin your investment journey in minutes. Many fund houses offer you the opportunity to start investing at any date of the month. And you don’t have to worry about lack of funds because you can start with as little as Rs 500 per month. And over time, you can steadily increase your investments to earn higher returns.
Mutual funds are a great way to invest and reach your financial goals. The good news is that in the last couple of years, more people have started investing in mutual funds after getting to know about the different benefits of mutual funds. Increased awareness through print and news media has been a contributing factor. So, if haven’t yet started, begin investing today. There is no better occasion to set out on this grand journey.